'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
It’s become far more difficult for the average Canadian to afford a home. Housing prices are forecast to be a whopping $670,389 on average in 2023, according to the CREA.
The good news is that major banks and financial institutions began offering First Home Savings Accounts (FHSAs) to eligible residents this spring.
Below, I’ll explain how FHSAs work, who’s eligible for the program, and outline the contribution rules so that you can take advantage of this incentive.
On December 15, 2022, Bill C-32 received royal assent, and the First Home Savings Account program was enacted. This program allows first-time home buyers in Canada to save up for their first home in a registered tax-advantaged account.
While the FHSA program was passed in December, it wasn’t officially enacted until April 1, 2023.
The program has been in effect for two months now, and major banks such as RBC, TD Bank, and others are offering FHSAs to qualifying individuals. To open an FHSA, you can simply visit a participating bank and speak to a financial advisor to open your account. You can also open one through your online bank portal, provided it has the FHSA available.
It’s worth noting that not all financial institutions are offering FHSAs yet, though.
Since the program is new, some smaller banks and credit unions are still working to incorporate FHSAs into their infrastructure.
One of the primary goals of the FHSA program is to make homeownership more accessible and affordable, despite the high levels of inflation and recent interest rate hikes.
Although the cost of homes has dropped compared to the highs we saw in early 2022, the cost of homes climbed 1.6 per cent this past April, according to the latest CREA housing market report.
FHSAs allow eligible Canadian residents to save and invest money in a registered account, similar to a TFSA, to make a down payment on their first home. Contributions to FHSAs are tax-deductible, and the funds can grow tax-free while they’re invested in:
One of the best things about an FHSA is that the money is tax-free once it’s withdrawn, as long as it’s put towards purchasing your first home.
Curious about opening an FHSA? Here are the requirements, as outlined by the CRA:
The last item on the list is the most important. Since the program is designed for first-time home buyers, those who already own a home or have purchased a home in the past will not be eligible to open an FHSA.
Currently, FHSAs have a lifetime contribution limit of $40,000. There’s also an annual contribution limit of $8,000. However, you can carry contributions forward.
For example, if you only contribute $5,000 in your first year, you could add the remaining $3,000 of contribution room to the next year for a total of $11,000.
If you overcontribute to your FHSA, the excess amount will be subject to a 1 per cent tax penalty until it’s removed from the account. If you’re unsure about your remaining contribution room for the year, you can speak to a financial advisor at the issuing bank where you opened your FHSA.
Qualified withdrawals from your FHSA are non-taxable. This means that as long as the withdrawal is used to purchase or build your first home, you won’t pay any taxes on the amount.
Should you satisfy the necessary conditions for withdrawal, it's possible to take out the entirety of your assets from your FHSAs without any tax implications. This can be done through a single withdrawal or multiple withdrawals.
Some other stipulations for a qualified withdrawal include:
If the funds withdrawn are not qualified, you won’t receive the tax-advantaged benefits of the account, and the funds will be subject to income tax.
Unlike TFSAs, which are often held for life, FHSAs must be closed once they reach their maximum participation period. This period begins when you open your first FHSA. It ends on December 31 of the year when one of the following events occurs (whichever comes first):
The FHSA, in my opinion, is a vast improvement on the Home Buyers’ Plan, which involves withdrawing from your Registered Retirement Savings Plans (RRSPs) to buy or build a home. A big downside to the Home Buyers’ Plan is that the withdrawn amount must be repaid to the RRSP, whereas the FHSA does not have any such stipulation.
If you’re saving up for your first home, FHSAs are an incredible incentive to take advantage of. Contributions are tax-deductible, and account growth and qualified withdrawals are all tax-free - something that no other registered account in Canada currently offers.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
The World Health Organization is likely to issue a wider warning about contaminated Johnson and Johnson-made children's cough syrup found in Nigeria last week, it said in an email.
Police have released video footage of a dramatic takedown of a group of teens wanted in connection with an attempted carjacking in Markham earlier this month.
Canada called for 'all parties' to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly Knight, a grade four student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
When Les Robertson was walking home from the gym in North Vancouver's Lower Lonsdale neighbourhood three weeks ago, he did a double take. Standing near a burrow it had dug in a vacant lot near East 1st Street and St. Georges Avenue was a yellow-bellied marmot.
A moulting seal who was relocated after drawing daily crowds of onlookers in Greater Victoria has made a surprise return, after what officials described as an 'astonishing' six-day journey.
Just steps from Parliament Hill is a barber shop that for the last 100 years has catered to everyone from prime ministers to tourists.
A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.
A compound used to treat sour gas that's been linked to fertility issues in cattle has been found throughout groundwater in the Prairies, according to a new study.