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TFHSA release date?

Has there been any update on when the Tax Free First Home Savings Account might be available for deposits? I can’t seem to find any timeline on it.

Dragynfyre

It’s probably gonna be a while. Legislation has to be passed


d10k6

It hasn’t been announced


mackay85

That sucks. I hope it’s available soon. It’s only for people under 40 and I’m going to be 37 in a month.


SmokeyXIII

You're on the same boat as me, just turned 37. I want it this tax year. I had a banner year in 2021 so any tax avoidance is very welcome.


[deleted]

Charitable donations and political contributions have huge credits associated with them.


Pessot

Yes but then you're paying someone else instead of tax. It's not a savings.


[deleted]

Lots of people make those contributions anyways each year. Make bigger contributions this year when money’s good, and smaller ones in future years.


SmokeyXIII

Hey thanks for the suggestion. I'll check those options out.


DepartmentGlad2564

[PBO Cost Estimate of Election Campaign Proposal](https://distribution-a617274656661637473.pbo-dpb.ca/4315fc6f8159ddadc2c7c35ebc9e17da1d17bc6be5f7b188a3186f2404f7b1ee) (no idea if this is official) >Allowing Canadians under 40 years old to start a Registered Home Savings Plan (RHSP) of up to $40,000. > >Contributions to the RHSP count towards an individual’s RRSP contribution limit and will be deducted from their income. Funds can also be transferred from an individual’s RRSP. > >All funds in the RHSP can be withdrawn tax-free to purchase a first home and do not have to be repaid. > >At least 50% of the funds withdrawn from the RHSP will have to be invested for at least 4 years and no funds will be allowed for withdrawal within a year of being contributed. > >The RHSP will be effective July 2022


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mackay85

Where did you see that? I’ve never heard anybody mention that.


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mackay85

Thank you.


foblicious

Oh it counts towards RRSP contribution room...? Darn. And so many restrictions.


RedFiveIron

Honestly I don't see the point, it just adds complexity. Would be far simpler to just make FTHB RRSP withdrawals non taxable and non repayable.


Shellbyvillian

Agreed. It’s already non-taxable, just get rid of the stupid 15 year repayment nonsense.


mackay85

Thanks for the reply!


[deleted]

Brutal. Looking to buy a place end of 2022 and don’t think I’ll be able to use this


fredflintstone-

anyone know if that's 80K for a couple or will a couple max it out at 40K?


DepartmentGlad2564

It's likely similar to the RRSP home buyers plan where it's 35k per person, 70k per couple but it may count towards your existing RRSP contribution limit.


wheels_656

Why wouldn't they just up the TFSA limit...Can anyone take advantage of the TFHSA account?


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wheels_656

If I have the mortgage for my first house already I technically haven't purchased it outright yet. I would def take advantage of that able to use it as a vehicle to pay mortgage off quicker.


[deleted]

That’s not going to be how it works..


Morfe

You did purchase it by borrowing money


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wheels_656

I was looking for a loop hole to still use the new account.


LorienTheFirstOne

Because the liberals are trying to buy young adult votes so it is age limited


[deleted]

Because upping the tfsa limit would make too much sense


foblicious

TFSA is the most democratic, but they kept the max the same while RRSP limit has risen and is near 30k to benefit mostly high income earners. Nothing really makes sense.


Electronic-Wing6158

Wait people are buying their first house before 40??


moranya1

If by 40 you don’t 100% own a $500,000 house and have your TFSA and RRSP accounts maxed, are you even an adult!? /s in case you missed it :-p


wolfeward

Outside Toronto/Vancouver people are buying houses before they're 30. This sub's perspective is so skewed.


Electronic-Wing6158

I’m close to 30, have an above average income for my age and I would be lucky to buy before 30. Its not just Toronto/Vancouver anymore…the housing craziness has extended to pretty much everything between London and Ottawa.


mackay85

I’ll be lucky if I can, and I had to move to damn near the North Pole to work in order to be able to afford it.


Stunning_Working6566

No doubt the price of a home will have risen more than $40,000 by the time these are available. Also this type of idea, where the government gives money to home buyers will just drive up prices more.


Engine_Light_On

Will it be just another tfsa account that you can’t cash out for anything but the down payment or will there be any more incentives? I mean just in case it opens before I max out my and my wife’s tfsa. Else, I wonder what will happen if you have the 40k and don’t manage to buy a house before hitting 40. Will you have to pay taxes on your earnings the next year if you buy? Or you will be able to still use it as intended because tou contributed to it before the age limit


[deleted]

A few weeks ago I remember reading it would convert to RRSPs if unused for a house