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FHSA now available at National Bank

T.NA | April 17, 2023

MONTREAL, April 17, 2023 /CNW/ - The Tax-Free First Home Savings Account (FHSA) is now being offered at National Bank.

To open your FHSA this year, you can make an appointment at FHSA | National Bank (nbc.ca)

Highlights:

What is it? It's a tax-free savings account for the upcoming purchase of your first home.
Who can access it? Are you a resident of Canada between 18 and 71 years old? Do you qualify as a "first-time home buyer"? You may be eligible. Other criteria available here.
What are the benefits? You pay less tax while saving.

Contributions are tax-deductible
Withdrawals to purchase a first home are also non-taxable
Returns on investments are tax-free
You can make your down payment using funds from both your FHSA, and RRSP using your Home Buyer's Plan (HBP)
Unlike the HBP, the funds don't need to be repaid and there is no withdrawal limit

How much can you save? You can contribute up to $8,000 a year, which can be carried forward if you don't contribute the full amount (a maximum of $8,000 in contributions can be carried forward to the following year). Your contribution room starts accumulating as soon as you open your account, up to a lifetime $40,000 limit.
If after 15 years, you no longer plan to purchase a property, you can transfer the amounts to your RRSP without affecting your RRSP contribution room.

About National Bank of CanadaWith $418 billion in assets as at January 31, 2023, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. The Bank has approximately 30,000 employees in knowledge-intensive positions and has been recognized numerous times as a top employer and for its commitment to diversity. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.