{"id":7574,"date":"2025-03-26T22:00:26","date_gmt":"2025-03-27T02:00:26","guid":{"rendered":"https:\/\/www.paulrioux.ca\/?page_id=7574\/"},"modified":"2026-05-25T09:29:50","modified_gmt":"2026-05-25T13:29:50","slug":"future-owners-tax-free-first-home-saving-account-tffhsa","status":"publish","type":"page","link":"https:\/\/www.paulrioux.ca\/en\/guide\/future-owners-tax-free-first-home-saving-account-tffhsa\/","title":{"rendered":"Tax-Free First Home Saving Account (TFFHSA)"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1743469426408{margin-bottom: 0px !important;}&#8221;]\n<h2 class=\"blog-single-title\">Fiscal and Financial Planning Guide 2024-2025<\/h2>\n<h3>Future owners &gt; Tax-Free First Home Saving Account (TFFHSA)<\/h3>\n<p>As mentioned in the Income Tax News section, this new measure in force 2023 will certainly be of interest to future owners.<\/p>\n<p><strong>Conditions to be met when opening the TFFHSA<\/strong><\/p>\n<p>In order to be eligible to open a TFFHSA, an individual must meet the following conditions:<\/p>\n<ul>\n<li>Aged 18 to 71<\/li>\n<li>Not having lived in a home owned by him or his or her spouse in the year of purchase and in the previous four years<\/li>\n<li>Be a Canadian resident<\/li>\n<\/ul>\n<p>In addition, a second eligibility test applies at the time of withdrawal from the TFSA, but this applies only to the TFSA holder and not to the spouse.<\/p>\n<p>This means that a person who has already opened a TFSA and is moving into the home of a new spouse could continue to contribute to his or her TFSA and possibly use it to acquire an interest in the spouse&#8217;s home.<\/p>\n<p>Eligible dwellings are the same as for the HBP.<\/p>\n<p><strong>Deductible contributions<\/strong>[\/vc_column_text][vc_cta h2=&#8221;&#8221; css=&#8221;&#8221;]The annual contribution limit to the TFFHSA is $8,000 regardless of income and the lifetime contribution limit is $40,000. TFFHSA contributions are tax deductible in the <strong>calendar year<\/strong> in which they are made, as opposed to RRSP contributions that can also be made within 60 days following the current year (i.e. January, February).[\/vc_cta][vc_column_text margin_bottom=&#8221;0&#8243; css=&#8221;.vc_custom_1779715856191{margin-bottom: 0px !important;}&#8221;]TFFHSA contributions are independent of RRSP contributions. This means you can contribute to both the RRSP and the TFFHSA.<\/p>\n<p>It is not obligatory to claim the deduction in the year the contribution is made. It may be deducted for example in a subsequent year at a higher tax rate if one anticipate an increase of income.<\/p>\n<p>On the other hand, if an individual does not contribute in a year, he or she will be able to contribute and deduct that contribution in a future year, but up to a maximum carry-forward cumulative of only $8,000.<\/p>\n<p>Contributions made in excess of allowable limits are subject to a monthly penalty of 1%.<\/p>\n<p><strong>Withdrawals<\/strong><\/p>\n<p>Withdrawals from the TFFHSA are not taxable when they are used to purchase a first home that an individual will occupy as his principal place of home.<\/p>\n<p>Withdrawals can begin when an agreement is reached for the purchase or construction of a home before October 1<sup>st<\/sup> of the following year and no later than 30 days after the new owner move to the new home.<\/p>\n<p><strong>Maximum duration<\/strong><\/p>\n<p>The TFFHSA ends with the first following event:<\/p>\n<ul>\n<li>At the end of the year following the withdrawal<\/li>\n<li>15 years after the TFSA was set up. If a home is not purchased, the funds can be transferred to an RRSP<\/li>\n<li>At age 71. As in the previous case, accumulated funds can be transferred to the RRSP<\/li>\n<\/ul>\n<p><strong>Helping children start a TFFHSA?<\/strong><\/p>\n<p>Many parents would like to help their children aged 18 or over buy their first home by contributing to their TFSA. However, it&#8217;s difficult to determine at what age a child will buy his or her first home. The following two points may help determine the best time to start making contributions.<\/p>\n<ul>\n<li>The maximum lifespan of a TFFHSA is 15 years (after which time, accumulated funds are transferred to an RRSP if no home has been purchased).<\/li>\n<li>In Canada, the average age of first-time homebuyers is 36.<\/li>\n<\/ul>\n<p>Therefore, it may be advantageous to start early in order to be able to contribute the 5 years required to maximized the TFFHSA, but not too early so as not to lose the advantage of being able to withdraw the funds from the TFFHSA tax-free if the home is not purchased within the 15-year period.[\/vc_column_text][vc_single_image image=&#8221;9216&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; css=&#8221;&#8221;][mk_button dimension=&#8221;two&#8221; corner_style=&#8221;rounded&#8221; size=&#8221;large&#8221; icon=&#8221;mk-icon-arrow-left&#8221; url=&#8221;\/en\/fiscal-and-financial-planning-guide\/&#8221;]Back[\/mk_button][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1743469426408{margin-bottom: 0px !important;}&#8221;] Fiscal and Financial Planning Guide 2024-2025 Future owners &gt; Tax-Free First Home Saving Account (TFFHSA) As mentioned in the Income Tax News section, this new measure in force 2023 will certainly be of interest to future owners. Conditions to be met when opening the TFFHSA In order to be eligible to [&hellip;]<\/p>\n","protected":false},"author":124,"featured_media":0,"parent":7402,"menu_order":41,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-7574","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax-Free First Home Saving Account (TFFHSA) | Paul Rioux CA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paulrioux.ca\/en\/guide\/future-owners-tax-free-first-home-saving-account-tffhsa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax-Free First Home Saving Account (TFFHSA) | Paul Rioux CA\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1743469426408{margin-bottom: 0px !important;}&#8221;] Fiscal and Financial Planning Guide 2024-2025 Future owners &gt; Tax-Free First Home Saving Account (TFFHSA) As mentioned in the Income Tax News section, this new measure in force 2023 will certainly be of interest to future owners. 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