July 5, 20263 min read
This decision can affect both approval and the cost of the mortgage for years. The FHSA was designed specifically to help eligible first-time buyers save for a qualifying home while receiving both contribution deductions and tax-free qualifying withdrawals.
What changes the outcome
Here is what matters most:
- The annual FHSA contribution limit is generally $8,000, subject to available participation room and carry-forward rules.
- The general lifetime contribution limit is $40,000.
- A withdrawal must satisfy cRA conditions to be treated as a qualifying tax-free withdrawal.
- Keep purchase documents and timing requirements in mind so the withdrawal is completed properly.
Coordinate the FHSA withdrawal with your mortgage and closing timeline rather than waiting until the final days before closing.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote