CornerstoneCU - First Home Savings Account

Tax-Free Savings

The First Home Savings Account (FHSA) is an investment arrangement available to Canadian residents aged 18 or older, that gives first-time home buyers a tax advantage option to save for a down payment.

Contributions to the account are tax-deductible, like an RRSP, while income and gains are tax-free, like an TFSA.

Contact your advisor to set up a First Home Savings Account today!

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Learn more about the features and benefits of a First Home Savings Account:

Compound growth and tax-sheltered savings. By contributing early, your investment will magnify returns over time through compounding. Invest money without being taxed on the income and growth.
Participation period. An FHSA can only be open for 15 years and must be closed by the end of the year when the holder reaches age 71. Additionally, the FHSA must be closed within one year of making a qualifying withdrawal to purchase your first home.
Transfers. An FHSA is transferable to another FHSA, RRSP or RRIF owned by the holder, a spouse/common-law partner named as the successor, or a former spouse/common-law partner.

Eligibility

Available to individuals who meet the following requirements:

Is a resident of Canada at the time of purchase
Is between the ages of 18 to 71
Has a valid SIN
Is a first-time home buyer

Contributions

Qualifying individuals can contribute $8,000 per year to their FHSA.

Unused contributions can be carried forward to a maximum lifetime limit of $40,000.
The annual limit is not income tested and is not based on the holder’s earned income.

Withdrawals

Conditions for the holder to receive the withdrawal tax-free:

First-time home buyer
Resident of Canada
Withdrawal made within 30 days of moving
Buy or build a home before October 1 of the following year
Home is in Canada

Penalties

Contributions above the annual limit are subject to a penalty tax of 1% per month on the excess amount until:

Entire excess amount is withdrawn
The entire excess amount is eliminated when annual contribution limit is reset

The Variable FHSA is a cashable tax-sheltered investment with a competitive variable interest rate. This flexible investment allows you to deposit or redeem at any time.

No minimum balance required.
Free deposits.
One free withdrawal per month. $5.00 per withdrawal after.
Tiered interest rate calculated daily and paid monthly.

You want to earn a higher rate of interest and have the freedom to access your funds if you need them.

Term Length	12 Months
Minimum Deposit	$1,000
Additional Deposits (through your Financial Advisor)*	Yes
Automatic Renewal	Yes
Redemption	Redeemable in full after 90 days without penalty - No interest paid if redeemed within the first 90 days.
Withdrawals	Withdrawals can be made at any time after 90 days. Minimum withdrawal is $1,000. $1,000 minimum balance must be maintained.
Interest Paid	Annually into Investment or Monthly at a reduced rate. Restrictions apply.

*Conditions may apply. Speak to your Financial Advisor.

Are you wanting to save for your future home? Our Easy Builder FHSA account is a great option!

Term Length	12 Months or 18 Months
Minimum Initial Deposit	$100.00
Minimum Deposit	$1,000 to be reached at end of 18-month term.
Additional Deposits (through your Financial Advisor)	Any time, any amount.
Pre-authorized Deposits	Yes. A minimum of $50.00 pre-authorized deposit must be set up.
Automatic Renewal	Yes
Redemption	N/A
Interest Paid	Annually into Investment or Monthly at a reduced rate. Restrictions apply.

Lock-in your funds and earn a higher interest rate.

Term Length	12, 24, 36, 48, 60 months
Minimum Deposit	$1,000
Automatic Renewal	Yes
Redemption	N/A
Interest Paid	Annually into Investment or Monthly at a reduced rate. Restrictions apply.

Non-Resident Account Holder

If you become a non-resident while owning an FHSA, your account can remain open, retain its tax-free status, and you can still make contributions. However, you won't be eligible to make a qualifying withdrawal.

Withdrawals by a non-resident will be subject to withholding tax.

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I consent to Cornerstone Credit Union collecting, using and disclosing my personal information as described in the agreement below.

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I consent to the Financial Institution, and its agents and representatives, collecting, using, and disclosing my personal information provided in connection with this Application, and any changes or additions to this information provided in the future, for the purposes of:

Providing me, or a third party for whom I am acting, with Financial Institution products and services that I have applied for or may apply for in the future and providing information to suppliers of products and services to me or the Financial Institution in connection with providing these Financial Institution products and services;
Understanding my needs and determining the suitability of products and services for me; determining my eligibility for these products and services;
Establishing my identity; verifying information provided by me with third parties including my employer and other financial institutions, verifying information provided by third parties; administering the Account; and making sure my records are kept separate from others with the same name;
Protecting me, a third party for whom I am acting, or the Financial Institution from error and fraud such as identity theft;
Collecting a debt owed to the Financial Institution;
Transferring or selling Financial Institution assets, such as in an acquisition, merger, loan syndication, securitization of loans, or sale of loans;
Complying with legal requirements, including money laundering laws and regulations.

I consent to the Financial Institution, and its agents and representatives, disclosing my personal information to:

Suppliers of products and services to me or the Financial Institution, including data service providers, cheque printers, card manufacturers, affiliates of the Financial Institution, provincial or national central Financial Institutions or trade associations, in connection with providing and administering my Account and other products and services provided to me, or a third party for whom I am acting;
Participants in the payment and clearing systems in connection with providing or administering my Account and other products and services provided to me or a third party for whom I am acting, and to other financial institutions that I request pay cheques drawn on the Financial Institution;

If there is more than one applicant, I consent to the Financial Institution disclosing information about the Account as instructed by either/any one of the Applicants.

If you have questions about the collection, use and disclosure of your personal information by the Financial Institution, please contact us.

The FHSA is a helpful tool for Canadians looking to buy their first home. With its contribution limits and tax advantages, it's a convenient way to save for your down payment. You can always stay up-to-date on your FHSA contribution room by checking "My Account" or "My CRA" on the CRA website or by calling the CRA's Tax Information Phone Service at 1.800.267.6999 (TIPS).