How to Use the FHSA to Buy Your First Mississauga CondoHow to Use the FHSA to Buy Your First Mississauga Condo

The Tax-Free First Home Savings Account (FHSA) is a game-changer for anyone looking to buy their first property in Mississauga. If you are struggling to save enough cash for a condo in today's market, this government account is the most powerful tool available to accelerate your savings.

Here is exactly how first-time condo buyers in Mississauga can use the FHSA to their advantage.

What is the First Home Savings Account (FHSA)?

The FHSA is a registered plan designed specifically to help Canadians save for their first home tax-free. It combines the best features of an RRSP and a TFSA. Like an RRSP, the contributions you make to your FHSA are tax-deductible, which lowers your taxable income for the year. Like a TFSA, the withdrawals you make to purchase a qualifying home are completely tax-free, including any investment growth.

Contribution Limits and Rules

You can contribute up to $8,000 per year into your FHSA, with a lifetime maximum contribution limit of $40,000. If you do not contribute the full $8,000 in a given year, you can carry forward up to $8,000 of unused contribution room to the following year.

If you are buying a condo with a partner, you can both open your own FHSA. This means together you could potentially save up to $80,000 tax-free toward your purchase.

Combining the FHSA with the RRSP Home Buyers' Plan

One of the biggest advantages of the FHSA is that you are allowed to combine it with the RRSP Home Buyers' Plan (HBP). The HBP allows you to withdraw up to $60,000 from your RRSP tax-free to buy your first home.

By using both accounts, an individual could access up to $100,000 in tax-advantaged savings. If you are still calculating exactly how much cash you need, make sure to read our complete Mississauga First-Time Home Buyer Down Payment Guide.

Ready to Start Your Search?

Once your funds are growing in your FHSA, it is time to start narrowing down your preferred neighbourhoods and building types. If you are looking for a walkable, urban lifestyle, check out our Square One First-Time Condo Buyer Guide.

When you are ready to see what your budget can afford, start browsing the market:

View Live Mississauga Condos for Sale

Need to review the full process? Return to our Complete First-Time Condo Buyer Guide to master every step of your real estate journey.