FHSA is such a smart choice for anyone looking to build wealth through real estate. I've been fortunate to leverage these accounts to grow my savings and invest in my dream home. It's all about strategic financial planning and taking advantage of the right opportunities.I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing!

New subscriber here

Thanks for this info. We close on May 28th, 2024. Between my wife and I, we planned on maxing out 16k each as we opened in 2023. I was confused by the "no restrictions on qualifying withdrawls" and "no minimum amount of time that funds have to stay in the account for tax deduction". So I figured we would make several deposits and withdrawals as we got paid during this last month to maximize the tax benefit. We discussed this with the bank and they saw no issues with it. As a result we pulled some money out about 10 days ago. When we went to put in another deposit yesterday with the bank we learned that wasn't possible. We didn't realize once money was pulled you can no longer deposit and receive tax deduction. This was news to our advisor as well. Is there anything that can be done here to reverse?

Off topic, but can you name your children as a "successor holder" for your FHSA, RRSP, RRIF, TFSA? Or does it have to be a spouse?

This is a great video! Thorough and clear explanation.

Can someone open an FHBA after purchasing a house a month ago given the buyer never owned an eligible house before? Thanks

I don’t understand hack 12. Is it only useful if I don’t have the money to reach the full 8k before the end of December? If I didn’t use hack 12 and just contribue 8k from my wallet and then recontribute the tax I save for the next years FHSA contribution when I get it in March, wouldn’t that come back to the same thing approximately?

My wife is unemployed so does that mean we can have 2 separate FHSA and I can contribute 8k to my FHSA and she can contribute 8k to her FHSA? Even though it was my income which I transferred to her bank account which she then transferred to her FHSA account? Thank you very much.

@cerealkilla4eva

8 ай бұрын

Yes if you file jointly it’s part of your household income

Thank you for this great video. Just a question to clarify eligibility. What if someone owns a rental property but does not own their primary residence, do they qualify for this account?

@EdRempel

Жыл бұрын

You can open an FHSA if you own a rental property, but not a home. The definition of first-time home buyer is that you have not owned a home that you lived at for the current year and last 4 calendar years.

Canadian resident returned for good in 2021 and sold the principal residential property at other country in 2020. So my question is when will be the time to qualify the first time home buyer plan in order to open the FTSA? Thanks

Can I spend my already taxed cash into FHSA and get refund if I plan to buy a home? I have missed investing in FHSA

@EdRempel

9 ай бұрын

Yes. It works even if you are not planning to buy a home. Then it's free RRSP room.

Hey, great video. What about transferring from your RSP to your FHSA in December as a top up?

@EdRempel

9 ай бұрын

You cannot transfer directly. You have to withdraw from your RRSP and then contribute to your TFSA. This would be tax-neutral and would work for you if you use it to buy a home - but not otherwise.

Hi Ed, Great Video. Just a small correction for non-residents., unless I misunderstood. Correct me if I am wrong. You can only accumulate maximum of $16,000 of FHSA room since only $8,000 gets carried forward. so, if non-resident comes back after 5 yeas, they can contribute $16,000 to get tax deduction instead of $40,000. Also, I believe to become non-resident, they will have sell their home before leaving canada but not a requirement for opening FHSA since you don't have to be first time home buyer to open FHSA

@EdRempel

Жыл бұрын

My understanding is that non-residents that have an FHSA can contribute $8,000/year and keep getting new room. Official rules are not out. CRA's web site has not been updated in 6 months and has factual errors on it. You have to be a first-time home buyer to open an FHSA. Leaving Canada for 5 years won't work if you own a home now. But if you rent now and plan to leave for 5 years (perhaps to a tax haven to save money), you can open an FHSA now, contribute for 5 years and then buy a home when you get back to Canada.

Can the spouse be able to contribute for the FHSA even though she's not working?

@EdRempel

9 ай бұрын

Yes.

Very informative 🙂 Thanks Ed 👌

This is a great video! FHSA is prefect for high income renters.

I have 7k in my rrsp, does it make sense to transfer that into the FHSA or that doesn’t really matter and just keep it in there?

@blackwomenbuildwealth

Жыл бұрын

I believe it's better to leave that in the RRSP. If not, you'd have to pay taxes on that.

@EdRempel

Жыл бұрын

Hi Mitch, It's better to leave your RRSP there, but likely do new contributions to an FHSA if you are not a homeowner. It gives you the opportunity of tax-free withdrawal if you buy a home. If you don't buy a home, it's essentially a free $40,000 RRSP room, since you can transfer any balance to your RRSP in the future. Ed

@Seabass08

Жыл бұрын

Thanks Ed. Great educational video, as usual. One question. $8k max contribution/year to a max $40k. Just so I'm clear, would $4k/year for 10 years still be within the rules? 😊

Excellent video, high quality, a lot of analysis rather than a general introduction. Thank you for sharing it. Definitely worth watching.

@EdRempel

9 ай бұрын

Glad it was helpful!

Quick question on the FHSA top-up strategy - how does getting a loan give you that same amount of money back in a tax refund for the year? Assuming I am just contributing to FHSA, no other investments etc... for the year. Thanks in advance!

@EdRempel

9 ай бұрын

The FHSA top-up means you borrow the amount you expect your refund to be. For example, if you are in a 40% tax bracket, an $8,000 contribution gives you $3,000 in a refund. You make the contribution with $5,000 of your cash and $3,000 from a credit line. When you get your tax refund, you pay off the credit line. This means $5,000 of your money made an $8,000 contribution.