The clock starts at opening
The account has a maximum lifespan, which begins the day you open it, not the day you contribute. Opening early, even without contributing, therefore starts the counter. That is a trade-off to make knowingly.
Contribution room does not work like a TFSA
Carrying forward unused room follows its own rules, distinct from the TFSA’s and the RRSP’s. An excess contribution triggers a monthly penalty, as with other registered plans.
The withdrawal must qualify
A withdrawal is tax-free only if it serves a qualifying purchase and meets the plan’s conditions, notably on first-time-buyer status and the commitment to occupy the property. A non-qualifying withdrawal is taxable.
What the account does not replace
The FHSA acts on the down payment and on tax. It does not increase your borrowing capacity and does not replace qualification with a lender. A mutual fund representative can explain the account; a broker assesses the financing.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.