Episode 85: Mama, I'm Comin' Home | CRAs New Option for 1st Time Homebuyers

Barenaked Money

In this episode of the Barenaked Money podcast, hosts Colin White and Mitch Silber discuss the First Time Home Savings Account (FHSA) in Canada. They explain that the FHSA is a registered account created by the federal government to help prospective first-time homebuyers save for their first home tax-free. However, eligibility criteria must be met, such as being Canadian, being 18+, and not having owned a home in the past calendar year or the previous four calendar years. The maximum annual contribution is $8,000, with a lifetime limit of $40,000. The hosts debate whether the FHSA will actually solve the housing affordability crisis in Canada, with Colin expressing scepticism and Mitch highlighting the potential benefits of the account. They also discuss different scenarios in which the FHSA could be a useful planning tool, such as for young couples saving for a down payment or for parents wanting to help their children buy a home. They emphasize the importance of considering individual circumstances and goals when deciding how to use the FHSA. The hosts also mention that the program could potentially change in the future, so it's important to stay informed and regularly review financial plans.