Equitable Life introduces First Home Savings Account
Equitable Life of Canada announced the launch of the Equitable Life First Home Savings Account (FHSA) to help Canadians save for their first home.
The FHSA is a registered plan that provides first-time homebuyers the opportunity to invest up to $40,000 for the purchase of a first home on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions are tax-deductible. Withdrawals to purchase a first home – including from investment income – are non-taxable, like a Tax-Free Savings Account (TFSA).
“We know it is challenging for many Canadians to buy their first home” says Cam Crosbie, Executive Vice President, Savings and Retirement. “As a company dedicated to helping people achieve their financial goals, we are proud and excited to launch the Equitable Life FHSA. We believe our FHSA is an important milestone in making the dream of homeownership a reality.”
The Equitable Life FHSA is a registered plan allowing prospective first-time homebuyers to save for their first home tax-free:
- Available on Pivotal SelectTM Investment Class (75/75) and Pivotal Select Estate Class (75/100).
- Annual contribution limit of $8,000 with a lifetime limit of $40,000
- Contributions are tax deductible (like a RRSP)
- Qualifying withdrawals are tax-free (like a TFSA)
- Unused FHSA proceeds can be transferred on a tax-deferred basis to a RRSP or Registered Retirement Income Fund.
Clients who open a FHSA between September 11 and December 31, 2023, have a chance to win $8,000 towards their 2024 FHSA contribution.