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By Guest Blogger Sinan Terzioglu
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The new First Home Savings Account (FHSA) will be available this spring and all eligible Canadians should plan to open one and take full advantage of it. To be eligible, you must be at least 18 years old (or age of majority in your province), a Canadian resident and have not owned a home that you lived in as a principal residence at any time in the preceding four calendar years. Individuals that are eligible will be permitted to contribute up to $8,000 per year up to a total of $40,000. Unused contribution room can be carried forward but unlike with RESPs, TFSAs and RRSPs carry-forward amounts start to accumulate only after a FHSA has been opened.
The FHSA combines the tax-advantages of both a RRSP and a TFSA. As with RRSPs, contributions will be tax-deductible but they will not impact available RRSP contribution room and as with TFSAs, withdrawals will be tax free but only if used to purchase a qualifying first home. Contributions to FHSAs do not have to be claimed as a deduction in the same year that you contribute so as with RRSPs deductions, you will be able to carry forward deductions indefinitely and claim them in years when you are in a higher tax bracket.
How to get the most out of the FHSA:
1. Plan to open a FHSA even if you never plan to purchase a principal residence – A FHSA can stay open for up to 15 years or until the end of the year you turn 71. If you never purchase a home all of the funds in the FHSA can be transferred to a RRSP even if an individual does not have available contribution room. At the end of the year a FHSA holder turns 71 all the funds in a FHSA can be transferred to a RRIF and taxes can be deferred until withdrawn.
2. Only hold liquid and low cost diversified assets – Just like with TFSAs, RRSPs and RESPs, you can hold publicly traded securities such as equity and fixed income ETFs in a FHSA. Since contribution room is limited it should be handled very carefully because if you suffer a permanent loss in a FHSA you cannot get the contribution back nor can you use the loss to offset future capital gains. For this reason, it would be best to steer clear of speculative assets, individual stocks as well as illiquid securities and only invest in a balanced and diversified mix of low cost fixed income and growth ETFs.
3. If planning to purchase a home consider utilizing a FHSA in conjunction with the Home Buyers Plan (HBP) – Home buyers do not have to choose between the two plans as the government will allow both the FHSA and the HBP to be utilized at the same time. Under the HBP, first-time home buyers can withdraw up to $35,000 from their RRSP on a tax-free basis to purchase a principal residence but the funds must be paid back within 15 years with at least 1/15th of the withdrawn amount paid back every year beginning the second year after funds have been withdrawn. By maximizing both plans an individual will be able to withdraw tax-free and put $75,000+ ($35,000 from HBP + $40,000 FHSA contributions + FHSA growth) towards the purchase of a home so for couples that’s a total of $150,000+.
4. Provide funds to your spouse and/or gift money to your adult children to contribute to their FHSAs – Individuals will be allowed to make contributions to their FHSAs with funds provided by their spouses and parents, however, the FHSA holder is the only taxpayer that will be permitted to deduct contributions. Since there is no gift tax this is a great way to help adult children save for the purchase of a home and they can carry the deduction claims forward for years they are in a higher tax bracket.
5. Designate your spouse or common-law partner as a Successor Holder – As with TFSAs, FHSA account holders can name their spouse or common-law partner as a Successor Holder which would allow the surviving spouse to take over the FHSA and retain the tax-exempt status so long as the surviving spouse meets all FHSA eligibility criteria. If the surviving spouse is not eligible, assets in the FHSA can be transferred to their RRSP or RRIF.
renters across the country should take full advantage of the FHSA. Business owners that only pay themselves in dividends do not accumulate RRSP contribution room but by opening and contributing to a FHSA they will have the ability to transfer funds to a RRSP in the future if they decide to never purchase real estate. Even if you own a rental property that you have never lived in you may be eligible to open a FHSA and for those that are planning to emigrate from Canada and potentially return one day, FHSA holders will be permitted to keep their accounts open and taxpayers can continue to contribute to them. Taxes will very likely never go down in our lifetimes so if you are eligible do not pass up this incredible opportunity to pay less tax over time.
Sinan Terzioglu, CFA, CIM, is a financial advisor with Turner Investments, Private Client Group, Raymond James Ltd. He served as vice-president of RBC Capital markets in New York City and VP with Credit Suisse in Toronto.
111 comments ↓
Calling a market bottom here. As, fishman sold out, yesterday. :-)
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I am a Workie. Each year, my paycheque goes down, even in the face of COLA increases, due the never ending taxation – increasing. But I’ll never reap a penny of this fodder. I’m in the wrong demographic.
My demo is marked as a Worker Bee. At the end my demo is the one I see in the “news” being sold T2’s Maid service.
They say the quiet part out loud.
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500 billion, at one bank alone? Stick a fork in it this country is done. No serious business would move here.
Hint hint WE are the carbon-based lifeform in the crosshairs.
” TD BANK GROUP SETS NEW $500 BILLION SUSTAINABLE & DECARBONIZATION FINANCE TARGET BY 2030. Toronto-Dominion Bank has launched a new sustainable and decarbonization finance target to support its customers, clients and the communities it serves by aiming to mobilize $500-billion by 2030 through financial activities including lending, financing, underwriting, advisory services, insurance, and the bank’s own investments.
This new target represents the next step in the Bank’s efforts to help support its customers and clients in the transition to a low-carbon economy and help contribute to improving social outcomes. The eligible environmental, decarbonization and social activities are focused on supporting progress toward key sustainability objectives of TD such as climate change mitigation and adaptation and economic inclusion.” (stockwatch.com)
#69 Albertaguy in AB on 03.15.23 at 6:05 pm
#17 CEW9 I have buy orders in on ZEB.TO at 33, 32 & 31
didnt get filled today…low was 33.01
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Never use round numbers, you are thinking like the herd.
Example, when a friend and I would plan to meet for tennis he would suggest we meet for 8 am. I would tell him no, lets meet for 7:50 and that way we’ll get the court before others who had planned to meet for 8.
In your example you should have placed the buy orders at 33.07, 32.07 and 31.07.
Garth posted about this a while back. When I posted a question as to how long one can carry forward the deduction, he said until the end of the 15 years. You are saying indefinitely. Can you confirm which is correct? Thank you.
IMHO….
….I’ve been to this “FHSA -style rodeo” before in the 1980’s.
If you can leverage the tax savings ..great…
……but if you think you can save enough to put towards a home? …forget it.
Been there…done that…
Maximum savings of $40,000 as a down payment. Mmmm.
Just enough to get someone into real big debt given the magnitude of home prices and the uncertainty in the interest rates and other factors like income and employment security. This is not ethical or sensible.
Saver and perspective home buyer beware!
Thanks Sinan! Great outline and information. This is exactly why we recommend Turner Investing to friends and family.
Helping out the next gen:
The best thing parents can do for their kids is to ‘pay it forward’ and help them with financial knowledge. Paying one’s own way is good, but allowing them to take on bad debt unnecessarily when family could have helped is not good.
So…
Help the kids with school and use extra funds over and above those needed for your own security to fund their registered accounts to kick off 40-50 years of compounding.
For the TFSA, plug in $8k/yr for every adult(ish) kid and make sure they know to carry the tax deduction forward to high earning years.
Starting a career and family is hard enough. No need to pile debt on top of that. Assist the progeny. It’s your duty.
I assume that dual US-Canadian citizens living in Canada are not eligible for the FHSA, correct? Logic: the US-Canada tax treaty does not recognize the FHSA, and hence the money would be taxable under US tax law.
Maximum savings of $40,000 as a down payment. Mmmm.
Just enough to get someone into real big debt given the magnitude of home prices and the uncertainty in the interest rates and other factors like income and employment security. This is not ethical or sensible.
Saver and perspective home buyer beware!
I liked it that SNB ready to give Credit Suisse 50M Francs if they need it.
Europa’s way of letting IQ 51-70 American put option investors know they will get a very bloody nose. Very bloody. NOT your HICK American no liquidity needed Regional Bank.
No story anymore. Boo hoo.
Kudos to a couple of Commenters that bought Team Poutine/Beavertail and Ricola bank shares during the faux non-American bank crisis.
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26C in Toledo today. 2-3 shot Spanish Negroni time…’gotta go get me some. Ola canadienses.
#3 Toodaloo – The deduction can be carried forward for as long as the FHSA is open so a maximum of 15 years not indefinitely. Thank you for pointing that out – Sinan
#4 Alois on 03.16.23 at 12:16 pm
IMHO….
….I’ve been to this “FHSA -style rodeo” before in the 1980’s.
If you can leverage the tax savings ..great…
……but if you think you can save enough to put towards a home? …forget it.
Been there…done that…
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I used my and my wife’s RHOPs for a down payment on my first home purchase in 1982.
And in those days there also were assumable mortgages.
Here in B.C.(Bring Cash)
Our Loonie Leftie NDP is going to pony up almost $500 million to buttress our transit system…based on decreasing ridership.
Huh?
Why throw good money after bad….?
One can postulate numerous reasons…one of which is fear- porning the Public to stay home during Covid as well as increasing carbon taxes.
I tend to break down these Gov’t expenditures with Napkin Math…so if BC has approx. 5 Million citizens, then approx $100 per BC citizen is being submitted to keep yet another Gov’t white elephant afloat. Most likely the Public Sector Unions are fear layoffs .
…..and here I thought previous BC NDP gov’ts couldn’t be surpassed for disaster….
OUCH…
Do you have link for #4 confirming that you can indeed combine the use of both the FHSA as well as the HBP? The link below indicates you cannot however if you have something showing that you can, I’m all for it.
https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html
I meant item #3, not #4.
beware omg hexicons really?
https://coingeek.com/hexicans-beware-richard-heart-scrambles-to-delete-tweets-as-sec-closes-in/
Garth and Sinan,
How would you recommend one invests their FHSA if they plan to purchase their first home within a 3-year, 5-year and/or 10-year period?
GICs or a 60/40 portfolio, depending on the timeframe one assumes?
2 Penny
“Never use round numbers, you are thinking like the herd.”
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I like this approach too Penny, though I’m not convinced
there is really much difference when you factor in the institutional buyers who are (should?) be using many metrics.
My reasoning is trying no to put too much emphasis on market timing. I’d rather see that 15-30% correction with a good yield and safe payout ratio. So I’m good with say a 27% correction and a 5.8% divvy, rather than waiting for a 30% correction and a 6% divvy.
Sorry Sinan, already have a house, so nothing to add to the day’s topic at the moment.
It’s another nice day. A little yard work on the agenda.
I’m confused by this apparent contradiction to #3:
Interaction with the Home Buyers’ Plan (HBP)
“The HBP would continue to be available as under existing rules. However, an individual would not be permitted to make both an FHSA withdrawal and an HBP withdrawal in respect of the same qualifying home purchase.”
source: https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html
I wonder if you can transfer your RRSP’s to the home buyers plan without having to pay taxes on it ??
Based on previous columns, this new addition towards purchasing a house will throw gas on the RE fire – especially if recent ructions see mortgage rates begin to creep downwards.
On the plus side for all those moaning that the FHSA will do ‘nothing’ towards purchasing RE at today’s valuations, true enough. However this misses the extremely important point that the FHSA permits those who qualify a way to springboard or build up their RRSP if they have one. Because one can contribute their maximum RRSP contribution AND contribute the maximum allowed FHSA to boot. Then if at the end of the 15 year timeframe, one can choose to shift all the funds from their FHSA into their RRSP because it doesn’t impact their RRSP contribution room. Call it a gift for those whose incomes permit such largesse & for those who are less financially blessed, still a gift IF they can somehow pack both tax shelters. You don’t ‘have’ to buy RE folks. So yes, a total gift especially for those who are out of RRSP contribution room which I for one would advise to use asap, because what one government grants another can take away.
Question…I sold pre-pandemic Aug 2019. I know I can’t contribute to the FHSA this year…but can I new years day 2024…or…do I need to wait till the 4 year anniversary date?
Much appreciated to you and the team for all your helpful advice (& comedy);)
Your witnessing the Nationalization of the US Banking system.
Something I can’t seem to find an answer to online: if you contribute to an fhsa but then only use the HBP or other cash for a down payment do you get penalized, or does the fhsa just roll over into an RRSP?
An interesting new tool in one’s toolbox. Thanks for the post.
DELETED (threatens violence)
Notice how people bad at math will get to spend billions of someone else’s money by telling them it’s free?
https://joannenova.com.au/2023/03/mystery-australians-invest-billions-in-free-wind-and-solar-but-prices-rise-another-20-30/
RE:#131 Senator Bluto on 03.16.23 at 9:19 am
Kommy Kim:
Your response to my statement about the Trump Bleach Hoax is to post and unrelated story.
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How is quoting your hero word for word unrelated? LOL!
#8 Niagara Region – You are correct the US will not recognize the FHSA as part of the Canada/US Tax-Treaty so US citizens residing in Canada should discuss potential US tax implications with their tax advisor before opening a FHSA – Sinan
Sinan,
”withdrawals will be tax free but only if used to purchase a qualifying first home.”
So does that disqualify you from FHSA if you previously owned a principal residence that has been sold and you and you are now renting?
”A FHSA can stay open for up to 15 years or until the end of the year you turn 71.”
So I take it that if you are over 71 you do not qualify for the the FHSA, is that correct?
The FHSA will do nothing to make home purchases more affordable for anyone. Not only that, but it’s a pointless increase in bureaucracy for an account that doesn’t need to exist. If the government was so desperate to throw a sop to people who have enough money to max out existing savings accounts, why not increase the amount that could be withdrawn from RRSPs for home purchases, or why not increase the TFSA limit? Anything but another damn account to keep track of.
I’ll take the tax break, but this is terrible policymaking.
#5 Steven Rowlandson on 03.16.23 at 12:16 pm
Maximum savings of $40,000 as a down payment. Mmmm.
Just enough to get someone into real big debt given the magnitude of home prices and the uncertainty in the interest rates and other factors like income and employment security. This is not ethical or sensible.
Saver and perspective home buyer beware!
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Back when I bought my first home in Dec. 69 I borrowed the $3000 down payment as I only had $500 to my name. If I had waited to save the down payment, the price would have risen twice the amount I borrowed in the following 2 years and I probably would not have been able to save enough in that time. I suspect that would be the case today given how wildly prices have risen. Sometimes you just have to take the leap and go for it. It certainly worked out for us. But, back then you could by a place for 2.5 times a single income.
#120 DON on 03.16.23 at 12:58 am
#101 The Groovy Guru on 03.15.23 at 9:15 pm
#10 DON on 03.15.23 at 2:54 pm
Did no one take heed of Powell’s warnings??
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What an asinine comment! I wasn’t sure of the spelling so I looked it up. When I saw your picture, I knew I had it right.
No, Don …. I imagine lots of Canadians are probably still reeling from this ….
“and on November 26, 2020, the governor of the Bank of Canada delivered the words that seemed to light the touchpaper for further borrowing.
Speaking to the House of Commons standing committee on finance, Tiff Macklem addressed the issue of rock-bottom interest rates, which had spurred a homebuying boom across the country, head on. “We want to be very clear,” he said. “Canadians can be confident that borrowing costs are going to remain very low for a very long time.”
Macklem described inflation – sitting the previous month at 0.7% – as “unusually weak,” indicating that the Bank expected it to increase gradually, but remain at less than 2%, entering into 2023.”
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I will put you down for a hard NO…I didn’t heed J Powell’s warning.
Mortgages are what 25 – 30+ years. Did Tiff M tell you that rates would be low forever?? Buying at peak price?
Hopefully your response was sarcastic in nature, otherwise you are competing for the Greater Fool Award.
So…are you extremely stupid or just foolish?
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Sarcastic? Nope. Upset with your petty ame calling. Nope. I rather expected it given your past behavior on this blog. Do I listen to CBs? Nope
I just wanted to highlight your inadequacy by showcasing your comments to the GFool community. How you thought people should be listening to a CB when they have so blatantly lied to by the likes of Powell and Macklins of the world. Try reading some of yesterday’s comments on this topic.
*Personally, my mansion was paid off decades ago. I did have about 7 helocs, 3 of which were variable in 2022 and have long since been paid off with ease. I might add that those Helocs contributed considerably over the past decade to establish the 8 figure wealth that I enjoy today. I’ll even go as far to say that my portfolio has not changed one iota from what it was 2 years ago since every dollar I have lost has been replaced with income or gains.
Regrettably… I doubt you could say the same about your circumstances. So, if you want to call me stupid .. I’m alright with that.
The era of easy money wherein fools paid too much for assets has been replaced by tough terms money or no money for many. For lenders it is now about risk management and your credit worthiness in a time of declining asset values.
How far will the BOC, the banks and the politicians go to prop up deadbeat people and zombie companies by wasting bank capital that could have been loaned to responsible people and business that will help the economy grow instead of stagnate.?
#2 Penny Henny on 03.16.23 at 12:09 pm
#69 Albertaguy in AB on 03.15.23 at 6:05 pm
#17 CEW9 I have buy orders in on ZEB.TO at 33, 32 & 31
didnt get filled today…low was 33.01
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Never use round numbers, you are thinking like the herd.
Example, when a friend and I would plan to meet for tennis he would suggest we meet for 8 am. I would tell him no, lets meet for 7:50 and that way we’ll get the court before others who had planned to meet for 8.
In your example you should have placed the buy orders at 33.07, 32.07 and 31.07
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Pure genius … why didn’t I think of that? Now I know what I’ve been doing wrong all these years. Who knew?
So, those “friends” you mentioned in your example above … they weren’t real were they? Are they still your friends?
#15 Traveler: The answer lies in the opening paragraph of the link you provided:
“The enacted rules differ in a number of ways from the August 9, 2022 proposal described in this backgrounder. Importantly, the enacted rules permit individuals to use the FHSA and the Home Buyers’ Plan together in respect of the same qualifying home purchase.”
I take it you can cash in RRSP’s/RRIF’s each year while contributing $8,000 each year to a FHSA? I have one fixed for life pension that starts to payout at age 70 so this FHSA could be useful as a deduction at age 70 and 71 to help negate an OAS clawback for 2 years.
Nothing like a good crisis eh lads?
Is this the Central Bank Digital Currency test rollout?
Only a crisis or two from nationalization and/or cash ban-new currency?? Stay tuned.
https://ca.finance.yahoo.com/news/federal-reserve-to-launch-instant-payment-service-fednow-in-july-210022218.html?
The Federal Reserve said Wednesday it will launch its long-awaited instant payment service FedNow in July.
The instant payment network will settle payments in seconds, with the capability to support consumer-to-consumer, consumer-to-merchant, merchant-to-merchant, and bank-to-bank transactions.
“With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible,” said Tom Barkin, president of the Federal Reserve Bank of Richmond and the FedNow Program’s executive sponsor.
“The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy.”
Do you qualify for this Garth? Haha
# 5 and # 9 are the same person. No wonder this blog is confused!
The TFSA is easy to understand but most people have no clue how it works and overcontribute, etc….the FHSA is going to be a complete nightmare. GFLTA
#19 Dr V on 03.16.23 at 2:19 pm
Sorry Sinan, already have a house, so nothing to add to the day’s topic at the moment.
It’s another nice day. A little yard work on the agenda.
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Dr. V ….Thanks for letting everyone know about your agenda. Rest assured it was top of mind for Sinan.
Is there any rules on how long you have to live in your first house before selling it? Alberta has no land transfer tax so in theory if you paid all cash moved in for the end of the year in December and then sold it a few months later and moved back to Ontario to rent would you get the full benefit of the program?
#36 Who knew? on 03.16.23 at 4:31 pm
#2 Penny Henny on 03.16.23 at 12:09 pm
Pure genius … why didn’t I think of that? Now I know what I’ve been doing wrong all these years. Who knew?
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You are welcome :)
#32 R on 03.16.23 at 4:15 pm
I’ll take the tax break, but this is terrible policymaking.
+1
Further complicate the existing tax rules with another new thing, hire more CRA agents to enforce the nickle and dime taxes, all to ‘save up’ for a down payment on…a parking space.
another hamfisted attempt by the Liberals to get people into houses
I wish they would just go away, they ruin everything
Disregard #14 and #15. I found the following:
https://www.advisor.ca/tax/tax-news/first-time-homebuyers-can-use-fhsa-and-hbp-feds-propose/
Defying Pivot-Mongers, ECB Hikes by 50 Basis Points, QT Continues, Explains Tools to Calm a Bank Panic while Fighting Inflation Simultaneously
https://wolfstreet.com/2023/03/16/defying-pivot-mongers-ecb-hikes-by-50-basis-points-explains-tools-to-calm-a-bank-panic-while-fighting-inflation-simultaneously/
Keep an eye on Japans bond market it’s a good chance that’s what’s going to go critical next.
From the Canada.ca website.
To open an FHSA, an individual must be a resident of Canada and at least 18 years of age. In addition, an individual must be a first-time home buyer, meaning that they have not owned a home in which they lived at any time during the part of the calendar year before the account is opened or at any time in the preceding four calendar years. For this purpose, ownership is defined broadly and includes beneficial ownership, but excludes a right to acquire less than 10% of a qualifying home.
An FHSA of an individual would cease to be an FHSA, and the individual would not be permitted to open an FHSA, after December 31 the year in which the earliest of these events occurs:
The fifteenth anniversary of the individual first opening an FHSA; or
The individual turns 71 years old.
Any savings not used to purchase a qualifying home could be transferred on a tax-free basis into an RRSP or Registered Retirement Income Fund (RRIF) or would otherwise have to be withdrawn on a taxable basis. Individuals that make a qualifying withdrawal could transfer any unwithdrawn savings on a tax-free basis to an RRSP or RRIF until December 31 of the year following the year of their first qualifying withdrawal.
In addition to the above, the website clearly states that yes, one CAN fund any RE purchase using both the HBP & the FHSA. The original proposed legislation did not allow this; the actual passed legislation does.
#21 SO – You can transfer funds from your RRSP to your FHSA but the same rules will apply so a maximum of $8,000 per year can be transferred tax free up to a lifetime total of $40,000. If the funds are withdrawn from the FHSA to purchase a qualifying first home than the withdrawal would be tax free
#34 DON of the ages on 03.16.23 at 4:25 pm
Wow triggered and…arguing like a petulant little child adult who didn’t get the memo or think accordingly. Comments from yesterday…give me a break, this isn’t reddit, try reading the comments and blog topics from the past ten years. Sometimes reality sucks and instead of facing it…you become triggered and try a senseless argument. Go try and cancel reality some where else.
Or are you the person on the beach that decides to go out for a swim when warned of an approaching tsunami? You started the asinine comment
, did you even brother to look up the definition or are you just into pictures.
Apologies Sinan.
Another Bailout.
https://m.investing.com/news/cryptocurrency-news/feds-btfp-may-administer-2-trillion-to-us-banks-states-jp-morgan-3031892
#19 Dr V on 03.16.23 at 2:19 pm
Sorry Sinan, already have a house, so nothing to add to the day’s topic at the moment.
It’s another nice day. A little yard work on the agenda.
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No kids, grandkids, nephews or nieces? The Sail Aways have lots…
Maybe we can roll you in as a godfather. Re-watch the movie to get in character.
The FHSA is monumentally stupid policy. The only people this will benefit are the people that can already max out their RRSPs and TFSAs. And if you can do that, you probably don’t need the extra help.
It’s a blatant tax giveaway to the upper middle class and rich. And we don’t have the money for it. Oh well, more debt for the Bank of Canada to inflate away on the backs of the poor and middle class, I suppose. No biggie.
It’s times like this when I wish the Liberals had at least one economically literate person in Cabinet.
#31 Ronaldo – If you owned a principal residence in the past and you are now renting that does not disqualify you from the FHSA. You can qualify for the FHSA so long as you have not owned a principal residence in the preceding 4 calendar years.
Those over 71 cannot open a FHSA. FHSAs must be closed by December 31 of the year a holder turns 71. Funds can be withdrawn but they will be taxed or all the assets in the FHSA can be transferred to a RRIF
#38 Tony – Yes, you can withdraw from RRSP and RRIFs while contributing to a FHSA.
FHSA is a great idea for most but not for some. I have a good sized RRSP that has to be turned into a RRIF in 5 years and when the manditory withdrawals start I’ll be in a much higher tax bracket than I am now and will not be buying a house. Tax advisor told me to pass on it.
43 fLIAR
“Dr. V ….Thanks for letting everyone know about your agenda. Rest assured it was top of mind for Sinan.”
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Yes, of course. Just doing my “Cuke and tomato picker”
best. Have a great day!
I’ll be taking full advantage of THAT 8K tax rebate.
Just curious.
If I buy some raw land to eventually build but I’m still renting….am I still eligible for the FHSA?
#7 Sail Away on 03.16.23 at 12:40 pm
Helping out the next gen:
The best thing parents can do for their kids is to ‘pay it forward’ and help them with financial knowledge. Paying one’s own way is good, but allowing them to take on bad debt unnecessarily when family could have helped is not good.
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That’s probably the second best thing.
The best is to give them a solid moral upbringing, such that they get married and stay that way for life.
Many a financial plan ruined by divorce.
I know some high earning guys now in their 50’s who got cleaned out and now have very little.
I know many couples married for 40-50+ years and almost none of them in poverty. They also live on less and don’t worry so much about their later years because they have a lot of family around.
I would not be surprised if Canada’s population surpasses 100 million population by 2075.
Then it will keep growing in population until it eventually catches the USA.
Canada will be an important country in the future. Hard winters will be sparse and rare. Europe , or parts of it anyway, is likely to go Mad Max.
#34 DON of the ages on 03.16.23 at 4:25 pm
Upset with your petty ame calling
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DON and his petty ames. None are more petty than DON’s ames.
It seems as if the boys in suspenders and cufflinks have failed to scare Powell into submission.
Don’t fight the FED holds.
More importantly the Greenspan Put has finally annulled.
Tick Tock, Tick Tock
#12 Ponzius Pilatus on 03.16.23 at 1:39 pm
I used my and my wife’s RHOPs for a down payment on my first home purchase in 1982.
And in those days there also were assumable mortgages.
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COMMENT:
Glad it worked for you…you would be about the only person I am aware of that benefitted from it.
I recall I had about $10,000 saved back then in that program …but home prices rose rapidly moreso post 1986.
It’s a sucker’s game for most.
#29 kommykim on 03.16.23 at 3:41 pm
RE:#131 Senator Bluto on 03.16.23 at 9:19 am
Kommy Kim:
Your response to my statement about the Trump Bleach Hoax is to post and unrelated story.
=======================================
How is quoting your hero word for word unrelated? LOL!
++++++++++++++++++++++++++++
If it actually happened, it would be correct. But quoting someone else’s interpretation of what was said instead the actual quote is a very common deception tactic used by leftists.
I have no doubt that you are being genuine in your statement that CNN/MSNBC or whoever reported it as you say. But the point I’m making is that they deliberately changed context or edited comments to push an agenda. Not sure how to make that clearer.
Time to register for the COP Climate Summit, this time in the exotic and wondrous United Arab Emirates.
This is the longest running last-chance-to-save-the-world climate summit, now in it’s 28th Year.
The planning for the Golden Anniversary 50th Last Chance Summit in Monaco is already started. Book your yacht early as slip spaces are limited!
Would someone with a six figure income with a DB pension which leads to a pension adjustment in box 52 reducing the RRSP contribution room from 18k to about 3-4k be entitled to the extra 8k deduction for 5 years, which then can be moved tax-free to the RRSP? That would be sweet triple-dipping ;)
The gap is widening…
56 CC spot on. Nough said
Hyper stagflation is here !! The great reset is coming and the WEF is smiling . Eat the bugs, you’ll own nothing and be happy, 15 minute cities, cbcd and UBI ! Its great to be old and hopefully only catch a little of it. Short, Short the stocks. The fed will keep putting down the yields until I guess it can’t . 2009 black swans are in the air and looking to land soon !!!
55 Sailo
“No kids, grandkids, nephews or nieces? The Sail Aways have lots…”
———————————————–
I’ve just got the kidults up to “slow ahead” on the RRSP and TFSAs. I set one of them up with my advisor. She
may suggest the FHSA to him.
I note Sinan’s comment at 52.
#53 DON on 03.16.23 at 6:19 pm
#34 DON of the ages on 03.16.23 at 4:25
did you even brother to look up the definition or are you just into pictures.
Apologies Sinan
———-
I’m not your “brother” as you claim ….
Perhaps you are confusing me with your less fortunate and even more repugnant true brother, Fakon.
#67 Senator Bluto on 03.16.23 at 7:15 pm
#29 kommykim on 03.16.23 at 3:41 pm
How is quoting your hero word for word unrelated? LOL!
++++++++++++++++++++++++++++
If it actually happened, it would be correct. But quoting someone else’s interpretation
—
Holy gaslighting batman!
Bluteus Maximus, kommykim gave you the words verbatim from Trump’s orifice. JFC, take the L and move on. Your man, Trump was, is and will always be the absolute worst of the worst. Not just among presidents, but people.
RE: #67 Senator Bluto on 03.16.23 at 7:15 pm
#29 kommykim on 03.16.23 at 3:41 pm
RE:#131 Senator Bluto on 03.16.23 at 9:19 am
Kommy Kim:
Your response to my statement about the Trump Bleach Hoax is to post and unrelated story.
=======================================
How is quoting your hero word for word unrelated? LOL!
++++++++++++++++++++++++++++
If it actually happened, it would be correct. But quoting someone else’s interpretation of what was said instead the actual quote is a very common deception tactic used by leftists
=======================================
LOL! You can watch a video where he says it:
https://youtu.be/33QdTOyXz3w
QE…. Come and get it!!
QE is Back!
About $300 billion in assets added to Fed balance sheet in the last week
https://twitter.com/GRDecter/status/1636497531050901504/photo/1
Japans industrial production month over month (MoM) January decreased 0.3 to -5.3%.
Japans the next canary I think- bonds.
Good program as it evens the odds a little between renters and homeowners. I plan to fund the FHSA for both my kids. Good way to give them an early inheritance which can compound tax free for a decade and a half.
Separately are banks a good buy now? weirdly the US bank run has hit our big 6 too.
Why does the FHSA have higher contribution room than the TFSA?
#73 Brothers in Arms on 03.16.23 at 8:36 pm
#53 DON on 03.16.23 at 6:19 pm
#34 DON of the ages on 03.16.23 at 4:25
did you even brother to look up the definition or are you just into pictures.
Apologies Sinan
———-
I’m not your “brother” as you claim ….
Perhaps you are confusing me with your less fortunate and even more repugnant true brother, Fakon.
—————-
Speaking of petulant children … I guess it was past your bedtime.
Or maybe you used up your quota of wit and wisdom for one day.
Perhaps your brother Farton could come to your rescue again! I heard he won a spelling bee back when he was in grade 2 a few years ago.
Kommy kim:
Please repost. That link doesn’t show anything.
75 kkim
“LOL! You can watch a video where he says it:”
—————————————————–
And from your earlier post:
“Well, he did suggest that:
‘I see the disinfectant that knocks it out in a minute, one minute. And is there a way we can do something like that by injection inside or almost a cleaning? As you see, it gets in the lungs, it does a tremendous number on the lungs, so it would be interesting to check that.’
Trump supporters were so dumb that the FDA had to issue a statement not to drink or inject ‘disinfectant’ ”
——————————————————
I only speak to this as how it shows “interpretation” can
be so, well, interpretive.
I did watch the vid and believe the earlier quote to be very or totally accurate.
A person of reasonable intelligence would not inject or orally administer a disinfectant.
In this case, I see Trump as pandering to his supporters
of lowest intellect and/or gullibility. He dumbs everything down, then looks to his staff and advisors for confirmation so it looks like he is doing everything he can.
A politician? No, Trump was completely out of his element. But a salesman knowing his customers? Very good.
Otherwise, Trump is on my “disengage” list.
#73 Brothers in Arms on 03.16.23 at 8:36 pm
#53 DON on 03.16.23 at 6:19 pm
#34 DON of the ages on 03.16.23 at 4:25
did you even brother to look up the definition or are you just into pictures.
Apologies Sinan
———-
I’m not your “brother” as you claim ….
Perhaps you are confusing me with your less fortunate and even more repugnant true brother, Fakon.
***********
You got me…the spellling mistake makes you smarter.
You are spare parts buddy. You worked yourself up into a reel tizzy. Off to readdittt for you.
Blank Stare.
Re Trump and Bleach.
Trump of who I am not especially fond of but do think he’s a better option then Biden.
Re the bleach comment.
Hydrogen peroxide is often referred to as bleach, it has some similar applications, like washing cloths..
Food grade hydrogen peroxide is anti viral and it can be taken internally, it’s in rain water, breast milk…
Clinics globally administer it intravenously, it’s anti viral.
That’s probably what he was referring too.
It’s not like he’s known for being articulate.
Please replace the word bleach for disinfectant…,
#80 Bedtime story on 03.16.23 at 10:12 pm
#73 Brothers in Arms on 03.16.23 at 8:36 pm
#53 DON on 03.16.23 at 6:19 pm
#34 DON of the ages on 03.16.23 at 4:25
did you even brother to look up the definition or are you just into pictures.
Apologies Sinan
———-
I’m not your “brother” as you claim ….
Perhaps you are confusing me with your less fortunate and even more repugnant true brother, Fakon.
—————-
Speaking of petulant children … I guess it was past your bedtime.
Or maybe you used up your quota of wit and wisdom for one day.
Perhaps your brother Farton could come to your rescue again! I heard he won a spelling bee back when he was in grade 2 a few years ago.
*******
Blank Stare at the man child!
last post from me Garth on this subject.
RE: #81 Senator Bluto on 03.16.23 at 10:18 pm
Kommy kim:
Please repost. That link doesn’t show anything.
=======================================
Just ask your parents to unlock youtube.com in the Net-Nanny Dashboard. Then you should be able to see it.
Some days this blog could do with a good ozone cleanse……. even better than bleach!?
https://nationalpost.com/health/gwyneth-paltrow-diet-bone-broth-rectal-ozone-therapy
#84 DOWn on 03.16.23 at 11:10 pm
Re Trump and Bleach.
No, it’s not.
Yes, and you will vomit amd burn your throat. DO NOT DO THIS AND DO NOT LISTEN TO THIS IDIOT!
It’s in every water-based liquid that is exposed to our atmosphere. IN VERY VERY SMALL QUANTITIES.
As a scam. Do not do this unless you like having embolisms that will either kill you or make you wish you were dead.
Yes, to be used EXTERNALLY.
His original and your present is horrible and dangerous advice. You are an idiot for covering up for his mistake with your own misinformation. STFU and let the doctors do their work.
Trump brought Saturday Night Live to Politics, dam near put SNL out of business. He did push the right buttons as a salesman to become President and pushed a moderate approach to making friends abroad.
I wouldn’t be shocked if he won again given the state of affairs in the US. I am hoping the next President is a benevolent SOB/DOB with a pragmatic approach. It is time!
#133 Sail Away on 03.16.23 at 9:59 am
#121 Diamond Dog on 03.16.23 at 1:39 am
Did you hear De Santis’s cut concerning SVB? “In its proxy statement, SVB notes that besides 91% of their board being independent and 45% women, they also have ‘1 Black,’ ‘1 LGBTQ+’ and ‘2 Veterans,’” he wrote. “I’m not saying 12 white men would have avoided this mess, but the company may have been distracted by diversity demands.” – Desantis
—————
False
DeSantis did not say, or write, that.
But you just misattributed it to cast shade. Who’s the baddie?
—
Fact check: true. DeSantis didn’t say that. But he did say essentially the same thing
–DeSantis
Diamond Dog fumbles. Sail Away recovers the football but is penalized on the play for completely ignoring the garbage that is DeSantis blaming the bank’s failure on something he calls “wokeness”.
so like 8 grand savings a year for 5 years is 40K , thats pretty good, so if you want to buy house for say 800K some cheaper, some more. other than a closet what are you really buying of this house. crazy ponzi scheme IMO.
why bother, listen 8 grand will get you no where, and 8 K for 100 years is 800K in my math. what is the government wasting there time with this plan.
i think the only thing that is going to happen is net net, the same money the bank of mom and dad get a free deduction via there kids gift that they would of made to them anyway.
rich people staying rich, poor people staying poor.
I don’t see the reasoning behind the FHSA. This could be accomplished so much easier with a boast in the TSFA contribution limits. It’ like the Liberals said ” Let’ introduce a bill that sounds like we care about home buyers. Let’s make it so complicated so no one will figure it out and eventually benefit no one. Let’s make sure it takes up gobss more civil servants to run it, so we can hire tons of handicapped First Nation females . BOX CHECKED, BOX CHECKED, BOX CHECKED.
These bank rescues are bad ideas….the costs will get passed to consumers.
So as I read these posts, basically no one thinks this will make housing more affordable, but everyone is very interested in using it for it’s non-intended purpose to provide another tax break. Kinda shows me just how dis-connected from reality Trudeau really is. Those poor CRA agents deserve at least a 35 percent raise for having to deal with this crap.
Canada, the Banana Republic. Look no further than the appointment of David Johnston to look into foreign meddling in our affairs. It’s not about whether he has the integrity to see the task through, it’s about his connections to T2. A reasonably intelligent person should be able to understand the optics and he should step aside. With both opposition leaders raising concern and calling for a public enquiry this is the moment to do it. It’s the optics, stupid.
#68 COP28 Climate Summit on 03.16.23 at 7:20 pm
Time to register for the COP Climate Summit, this time in the exotic and wondrous United Arab Emirates.
This is the longest running last-chance-to-save-the-world climate summit, now in it’s 28th Year.
The planning for the Golden Anniversary 50th Last Chance Summit in Monaco is already started. Book your yacht early as slip spaces are limited!
—-
Ridiculous scare mongering nonsense.
First, everyone and their cat knows that you don’t go to Monaco with a yacht. You go with a super yacht.
Second, there is never a shortage of super yacht space outside of Port Hercules. You shuttle into land from your super yacht…on a regular yacht.
Finally, heads up – there will be a contest for the most appropriate super yacht name at this Monaco COP28 future event. Dibs on “POL ARS BARE”
Reading the tea leaves Snippet………( note the last phrase about what Mr. Inflation is projected to do….)
” The European Central Bank carried through with a large interest-rate increase Thursday, brushing aside predictions it might dial back as U.S. bank collapses and troubles at Credit Suisse feed fears about the effect of higher rates on the global banking system.
The ECB hiked rates by half a percentage point, underlining its determination to fight high inflation of 8.5 per cent. While some foresaw a smaller increase because of the banking turmoil, President Christine Lagarde repeatedly called the banking sector in the 20 countries using the euro currency “resilient,” with strong financial reserves and plenty of ready cash. And if it became necessary, she said, the ECB is “fully equipped” to provide additional support to the banking system.
As for more rate hikes in Europe, Lagarde said “inflation is projected to remain too high for too long”
Oh boy. Down south the House Oversight Committee “alleging that Hunter Biden and at least two relatives were paid $1.3 million from an associate of the president’s son who had links to a Chinese energy company.”. This reported in mainstream media (NBC).
Wonder what President Ron DeSantis will have to say about it if asked…..
@#95 Bezengy
“Kinda shows me just how dis-connected from reality Trudeau really is. ”
+++
I’m quite sure Trudeau has never worried about money, his next meal, where to live, a mortgage, or bankruptcy.
A whole different level of existence above the unwashed , voting , rabble.
Silver spoons and their legacy.
Kommy Kim:
I viewed the clip you attached. Nowhere in there did Trump suggest drinking or injecting bleach. But his words did “shake the box” and that was what they were designed to do. I’ll explain:
I’ve been in numerous brainstorming and roundtable discussions where people are asked to throw out ideas, some good, some bad, and some downright silly. If you’re familiar with how people in make decisions, you’d recognize Trump’s words and technique as a standard tactic used by all experienced leaders on how to”shake the box” to get people to break away from locked and blocked thinking.
Questionable choice of words? Maybe, but only, if you’ve never been in a situation that requires out-of-the-box thinking, or primed by the media to look for crazy behavior. But when you need your team to get out of their comfort zone they need to see the boss willing to step out and ask unconventional questions before they’ll feel OK about being unconventional and creative themselves.
Anyway, all a moot point. I’m sure you’ll watch that clip and at 00;27 you’ll hear the word “bleach” where I hear the word “disinfectant”. Where you see and hear a madman telling people to inject or drink bleach, my management filter sees a calm leader giving his team permission to think outside the box and look for unconventional solutions for a deadly and unprecedented global crisis.
And that’s OK. No one says we have to agree. The point that I’m making is that the MSM decided to push the “crazy” narrative where they could have just as easily pushed the “Experienced executive shaking the box” narrative.
But regardless, nowhere in the clip did he ask anyone to “drink bleach” or drink anything else. Those words were a complete fabrication by the media.
#91 Faron on 03.17.23 at 12:52
Diamond Dog fumbles. Sail Away recovers the football but is penalized on the play for completely ignoring the garbage that is DeSantis blaming the bank’s failure on something he calls “wokeness”.
—————
I like the way DeSantis is outlawing gender hormone treatment and surgery for minors. Those are the Thalidomide babies of this generation. Shame.
KommyKim:
And just for greater clarity, the clip clearly demonstrates that Trump’s questions and comments were directed at his medical advisors, and he at all times deferred to them.
If anyone in the general public decided to drink or inject bleach or any other disinfectant, it would have been the result of what the MSM reported that Trump said, not what he actually said, so blame rests on the MSM for not doing their job properly.
Hey Faron, a quick update on AQN, that was discussed back in November: my position is +9% since then with a very nice div around 7%. Not bad at all.
It’s nice to have a financial blog to share these little beneficial vignettes, you know? We can all win together.
#61 ‘crowded’ – that is an interesting question. Below is what the Canada.ca website has to say:
The taxpayer must also have a written agreement to buy or build a qualifying home before October 1 of the year following the year of withdrawal and intend to occupy the qualifying home as their principal place of residence within one year after buying or building it.
So based on the above, I’m thinking that in order to be able to use the FHSA you may have to commit to building yourself a PR on your raw land within one year of purchase. The snippet above is from the qualifying withdrawals section of information on FHSA. Give it a gander – I got to the page via canada.ca/fhsa.
#93 4 out of 3 people find math hard on 03.17.23 at 4:32 am
I don’t see the reasoning behind the FHSA. This could be accomplished so much easier with a boast in the TSFA contribution limits. It’ like the Liberals said ” Let’ introduce a bill that sounds like we care about home buyers. Let’s make it so complicated so no one will figure it out and eventually benefit no one. Let’s make sure it takes up gobss more civil servants to run it, so we can hire tons of handicapped First Nation females . BOX CHECKED, BOX CHECKED, BOX CHECKED.
———–
So much for inclusivity. What about LGBTQ2+? Have you learned nothing from the past 3 years?
Come on now, woke up and smell the kombucha.
#102 Sail Away on 03.17.23 at 10:00 am
#91 Faron on 03.17.23 at 12:52
Diamond Dog fumbles. Sail Away recovers the football but is penalized on the play for completely ignoring the garbage that is DeSantis blaming the bank’s failure on something he calls “wokeness”.
—————
I like the way DeSantis is outlawing gender hormone treatment and surgery for minors. Those are the Thalidomide babies of this generation. Shame.
********
Indeed. Most importantly De Santis did it only after a comprehensive review of the current science on pediatric transition. His government is in good company, aligning itself with progressive nations like Sweden, Finland, France, the UK and the Netherlands.
I don’t think medicine by decree is the best solution, but if ideologically captured, profit-motivated institutions won’t adopt evidence-based practices, there’s no other acceptable solution.
The Obama administration also conducted a thorough review of the efficacy of transition medicine to determine if it should be covered by Medicaid. The result was negative.
Children and adults can no more possess a cross-sex gender soul than women can possess a wandering uterus.
The FHSA is racism against principle residence owners.
Selective enrichment.
The WOKE SJWs need to protest this colonialist white supremacist racist marginalizing oppressive scheme NOW!
#89 Faron
I corrected myself #85
It’s not bleach but the food industry uses Food Grade H2o2 to bleach many foods.
Food Grade being the key phrase here, 3% which doesn’t burn ones throat.
https://active-oxygens.evonik.com/en/markets/food-fiber-bleaching
It’s used in milk as a preservative.
https://pubmed.ncbi.nlm.nih.gov/25285503/
It’s in rain water.
https://www.sciencedirect.com/science/article/abs/pii/S1352231098002398
It’s in mothers milk
https://www.nature.com/articles/pr2017303
( don’t blame your Mom)
You agree it’s anti viral and so does the science community.
Some Cancer Clinics use it, intravenous, oral and nebulizer.
https://utopiacancercenter.com/treatments/hydrogen-peroxide-iv-therapy/
Many clinics – naturopaths use it through out the globe and have for years.
This isn’t a pissing match there’s pro and con information out there about almost everything.
My point being this could be the disinfectant Trump was referring to.
Do not do h2o2 without medical supervision.
Food Grade Hydrogen Peroxide has been used and administered for years.
Re Hydrogen Peroxide.
Great Photo today – yes the feeling you get when you have followed sound financial advice and reap the rewards. That BIG Smile ! Looks like it tastes great too
It is unfair that FHSA is capped at 71.
The govt is supposed to be open, fair and inclusive. It should not have an age limit.
Many senior citizens are in good health and may want to take advantage of this program if they so choose.
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