Autumn Tax Planning with the First Home Savings Account (FHSA)

As year-end approaches, tax planning becomes top-of-mind for prospective first-time home buyers in Canada. Unlike Registered Retirement Savings Plan (RRSP) contributions, which allow a 60-day window into the following calendar year, the First Home Savings Account (FHSA) contribution deadline is strictly December 31. Contributing the annual $8,000 limit before year-end not only lowers your current year's taxable income but also unlocks tax-free growth and tax-free qualifying withdrawals. When pa