Tax-Free First Home Savings Account (FHSA)

The Tax-Free First Home Savings Account (FHSA) is a savings account for home purchases. It's a new registered plan allowing first-time homebuyers to save up to $40,000 tax-free. This new account is expected to be implemented in 2023, but there are still some unanswered questions about the details. 

Here's what we know so far:

- Age limit: You should open your FHSA before reaching 71 years old, or it can be opened for 15 years.

 - Contributions, deductions and taxes: Unlike an RRSP, which allows contributors within the first 60 days of the following year, all your FSHA contributions should be made before December 31st for current-year deductions.

 - Deductions can be carried forward to future years to reduce taxable income.

 - Once the account is opened, unused portions of the annual contribution limit will be allowed to be carried forward up to $8,000. This means that an individual who makes less than $8,000 in contributions in one year could contribute the following year, their annual contribution limit of $8,000 plus $8,000 minus their contributions made in the previous year (subject to their lifetime contribution limit).

More details and examples can be found here.