{"id":9993,"date":"2023-02-15T14:31:31","date_gmt":"2023-02-15T14:31:31","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=9993"},"modified":"2025-04-07T16:00:28","modified_gmt":"2025-04-07T16:00:28","slug":"saving-first-home-rrsps","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/saving-first-home-rrsps","title":{"rendered":"Saving for a First Home? Here\u2019s a Better Option Than RRSPs"},"content":{"rendered":"

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If you\u2019re thinking about putting money into an RRSP for a future home purchase, consider waiting for the First Home Savings Account.\u00a0\u00a0<\/span><\/p>\n<\/div>\n

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By Josh Sherman<\/a>\u00a0<\/span>| 4 minute read<\/p>\n

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The <\/span>deadline to contribute to your Registered Retirement Savings Plan<\/span><\/a> for the 2022 tax year is fast approaching, but a leading finance expert has some advice for anyone who\u2019s starting to save for a home down payment: Wait for the <\/span>First Home Savings Account<\/span><\/a> instead.
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<\/break><\/span>Although the popular <\/span>Home Buyers\u2019 Plan<\/span><\/a> lets first-time buyers withdraw up to $35,000 from an RRSP for the purchase of their first home, Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management, says the soon-to-be-available FHSA will be the better bet. \u201cThe First Home Savings Account is going to be the way to go,\u201d Golombek tells Wahi. <\/span><\/p>\n

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“You get the benefits of the RRSP and the benefits of the TFSA, together.”<\/strong><\/span><\/h2>\n

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Coming Soon: First Home Savings Account\u00a0\u00a0<\/b><\/b><\/h2>\n

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The FHSA, a new type of registered tax-free account <\/span>announced in Canada\u2019s 2022 budget<\/span><\/a>, is expected to be ready for first-time homebuyers this spring. When it is, homebuyer hopefuls will be able to contribute up to $8,000 per year to an overall maximum of $40,000 for the eventual purchase of a first home, which you must then live in.<\/span><\/p>\n


Golombek says one of the main advantages of the FHSA over the Home Buyers\u2019 Plan is that the money you contribute is never taxed if it\u2019s used to purchase a home, much like with a Tax-Free Savings Account<\/a>. Withdrawals through the Home Buyers\u2019 Plan aren\u2019t taxed either. But that money must be paid back to your RRSP within a 15-year period and, when it is eventually withdrawn for retirement, it will be taxed.<\/span><\/span><\/p>\n