First Home Savings Account (FHSA)
  
A first home savings account (FHSA) is a registered plan allowing you, as a prospective first-time home buyer, to save for your first home tax-free (up to certain limits). You are able to open an FHSA as of April 1, 2023 however financial institutions are slowly rolling it out.
To qualify to open a FHSA you must be at least 18 years old, be a resident of Canada and be a first-time home buyer.
Your FHSA participation room for the year is the maximum amount that you can contribute to your FHSAs or transfer from your registered retirement savings plans (RRSPs) to your FHSAs in the year without creating an excess FHSA amount . For more information about transfers, go to Transfers between FHSAs and other registered plans.
Your FHSA participation room in the year that you open your first FHSA =$8,000
The lifetime FHSA limit =$40,000
All contributions you make to your FHSAs and all transfers from your RRSPs to your FHSAs will reduce your remaining lifetime FHSA limit. If your contributions and transfers to your FHSAs in the year exceed your FHSA participation room for the year, you will have an excess FHSA amount. For more information about an excess FHSA amount, go to What happens if you contribute or transfer too much to your FHSAs.
Changes to the Foreign Buyer Ban
The government of Canada has made a few changes to the foreign buyer ban.
The four key amendments announced Monday by the Minister of Housing and Diversity and Inclusion include:
Work Permit Holders
Non-Canadian work permit holders were initially included in the ban, but critics argued that was contradictory to the government’s immigration goals. As a result, work permit holders are now exempt from the ban as long as they have 183 days or more of validity remaining on their work permit.
Vacant land exemption
The restriction preventing non-Canadians from purchasing vacant land zoned for residential or mixed has been lifted.
Exception for development purchases
Non-Canadians will also now be able to purchase residential property for the purpose of development. This exception was only applicable to publicly traded corporations in the original legislation.
Increase to the foreign control threshold
The ban initially prevented privately held corporations or entities from purchasing residential property if a non-Canadian owned 3% or more. That threshold has now been increased to 10% following concerns from developers that the 3% threshold was too restrictive and would hinder the development of new housing.
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