August 25, 2023

How do I know if I am eligible for the FHSA (First Home Savings Account)?

The FHSA is a type of account that has been recently created by the government to encourage and assist Canadians to save for their first home.

To be eligible to open the FHSA account you must be at least 18 years of age, under the age of 71, AND qualify as a first-time homebuyer. 

At a glance, this seems very straightforward – however when we dig a little deeper, the definition of a first-time homebuyer as per the CRA can seem a little complicated.

For example according to the CRA, you will be considered to be a first-time home buyer if you did not (at any time in the current calendar year before the account is opened, or at any time in the preceding four calendar years) live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned/jointly owned **OR** that your spouse or common-law partner (at the time the account is opened) owned/jointly owned.

SIMPLIFIED SUMMARY from Spire Advisors of Assante Capital Management Ltd.:

If you're wondering whether or not you qualify as a first time home buyer, try asking yourself: have you or your spouse or common-law partner owned or jointly owned a home any time in the year the account will be opened (or in the previous four calendar years)? 

1. If the answer is "yes" – was it your primary residence? If it was your primary residence, then you and your spouse or common-law partner will be unable to open an FHSA. If you owned a home but did not live in it as your primary residence (for example, if you owned a rental property but did not live in it yourself), then you and your spouse may be able to open an FHSA account. 

2. If the answer is "no"  – then congratulations! You and your spouse or common-law partner may be eligible to open an FHSA account.

If you have any questions about your eligibility and/or the next steps you can take, please reach out to one of our advisors today.

Office Locations: Huntsville, Powassan, Parry Sound, North Bay, and Orillia

- Spire Advisors of Assante Capital Management Ltd.