Tax-free registered investment account helps homebuyers save for a down payment
TORONTO (October 2, 2023) – CI Global Asset Management (“CI GAM”) announces that it is offering the First Home Savings Account (“FHSA”), effective today.
“We’re pleased to provide this new tax-free investment account, a valuable tool in helping Canadians realize their dreams of owning a home,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM.
“CI GAM’s product lineup supports FHSA investors in taking full advantage of the benefits of this program. We offer a wide range of investment mandates that can protect and grow their home down payment.”
The FHSA, which was introduced by the federal government this year, allows prospective homebuyers to contribute up to $8,000 a year to a lifetime maximum of $40,000. Contributions are tax-deductible. Both the principal and the investment gains can be withdrawn tax-free when used to purchase a first home.
Canadians who are interested in opening an FHSA should speak to their financial advisor, who can assist with the account setup and selecting appropriate investments.
Key facts about the FHSA
- Available to Canadian residents age 18 (or the age of majority in their province) or older who are first-time homebuyers (those who do not own a home they occupy as their principal residence in the current year or four calendar years prior to opening the account).
- Contribution limit of $8,000 a year to a lifetime maximum of $40,000; unused contribution room can be used in later years once an account is opened, subject to conditions.
- Contributions are tax-deductible.
- Eligible investments include mutual funds, ETFs, other publicly traded securities, and guaranteed investment certificates.
- Withdrawals are not taxed when used to buy a first home.
- Generally, the FHSA can remain open for 15 years after the year the account was opened.
- If the money is not used to buy a home, it can be withdrawn and taxed as income, or transferred to a Registered Retirement Savings Plan or Registered Retirement Income Fund on a tax-deferred basis.
More information about the FHSA is available on CI GAM’s website.
About CI Global Asset Management
CI Global Asset Management (“CI GAM”) is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $431.9 billion in assets as at August 31, 2023.