If you are a first-time home buyer, or you know one, this is an important nudge to setup a First Home Savings Account (FHSA) prior to the end of the year, even if you don’t intend to add anything to it immediately. This will allow you to utilize this year’s $8,000 annual contribution limit, with another $8,000 available next year, and in the years following – up to a total of $40,000.
If you’re not yet familiar with the First Home Savings Account all details can be found here and your account should be able to be setup at almost any financial institution in Canada. If I were a young buyer currently, I’d probably lean toward TSFAs, then the FHSA, and finally RRSPs in the unlikely event I had any savings left! Everyone’s financial situation is different though, of course, so please speak to your financial advisor and/or accountant about the FHSA and how it may work for you.