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Personal Finance

Weathsimple FHSA Account Review 2024

Embarking on the journey to your first home is a monumental financial achievement. The Financial Home Savings Account (FHSA) is your crucial first step, and we’re here to guide you through every aspect of this intelligent savings strategy.

Why Choose Wealthsimple FHSA?

  • Smart Savings for Your Down Payment

Similar to an RRSP, an FHSA delivers a substantial benefit at tax time by reducing your taxable income. This translates into a significant discount when it matters most.

  • Tax-Free Gains for Your Future Home

Much like a TFSA, the growth in your FHSA investments, including dividends, can be withdrawn tax-free when utilized for your first home purchase, without any payback requirements.

  • Flexibility without Penalties

Should your homeownership plans evolve, fear not. You can seamlessly transfer your FHSA funds to your RRSP without impacting your RRSP contribution room. This level of flexibility sets the FHSA apart.

Review Your Wealthsimple FHSA Account

Understanding Wealthsimple FHSA

Qualification Criteria

To be eligible, you must be a Canadian resident aged 18-71 who hasn’t owned a home in the last four years. Intending to purchase an investment property disqualifies you from the FHSA.

Contribution Limits and Periods of Wealthsimple FHSA

  • Yearly Limit: $8,000, with unused portions carrying forward.
  • Total Over 15 Years: $40,000.
  • Carry-over Period: 1 year, resetting on December 31st.
  • Maximum Room at Any Point: $16,000.

Investment Choices

How you invest is entirely up to you. With Managed Investing, Wealthsimple advisors handle the heavy lifting, creating a custom portfolio aligned with your FHSA goals.

Alternatively, a Self-Directed Investing account provides complete control over your investments, allowing commission-free trading of over 9,000 stocks and ETFs.

FHSA vs. RRSP

When it comes to saving for your first home, it’s crucial to understand the nuances between an FHSA and an RRSP.

AttributeFHSARRSP (Home Buyer’s Plan)
Helps you save forYour first homeRetirement
EligibilityFirst-time home buyers aged 18-7118-71 years old
Annual contribution limit$8,000 (up to a max of $40,000)18% of previous year’s income up to $30,780
Tax impact on contributionsDeducted from taxable incomeDeducted from taxable income
Tax impact on withdrawalsGrowth and withdrawals towards your first home are tax-freeTaxed as income (with some exceptions)
Contribution deadlineDecember 31st60 days after December 31st
Government benefitsNo impact on other benefitsWithdrawals may impact other government benefits based on income
Withdrawal stipulationsNoneMust withdraw to RRIF at 71

Advantages of Wealthsimple FHSA

  • Seamless Investing

Open your FHSA without the hassle of paperwork or bank appointments. Making contributions or withdrawals is just a few taps away, putting you in control of your financial future.

  • Human Support, 7 Days a Week

Have questions about your FHSA? Weathsimple team is available seven days a week via phone, chat, or email to provide assistance.

  • Maximize Your Returns

Whether you choose to manage your investments or let Weathsimple experts handle them, rest assured that high fees won’t eat into your returns.

  • Easy Transfers

Transferring funds from your RRSP or TFSA to your new FHSA is a breeze. Even if you’re coming from another institution, Weathsimple ensures a smooth transfer, covering the first transfer fees charged by your brokerage for amounts over $5,000.

Your first home is a milestone, and the path to homeownership begins with informed financial decisions.

Open an FHSA with Wealthsimple, skip the paperwork, and start your journey toward your first home today. Your financial future deserves the best, and Weathsimple is here to make it happen.