- Interactive Brokers (IBKR, Financial) introduces the First Home Savings Account (FHSA) for Canadians, offering tax-free savings for first-time homebuyers.
- The FHSA allows for annual contributions of CAD 8,000 and a lifetime cap of CAD 40,000.
- Investors can benefit from tax-deductible contributions and tax-free growth with flexible investment options in US and Canadian markets.
Interactive Brokers (IBKR), a leading global electronic broker, has announced the launch of the First Home Savings Account (FHSA) for Canadian residents. This account aims to provide a tax-efficient solution for first-time homebuyers to save and invest in their future homes. The FHSA is a government-registered account specifically designed to facilitate the journey to homeownership for Canadians.
The FHSA offers several benefits, including tax-deductible contributions and tax-free growth on capital gains and interest income. Subscribers can invest in a diverse array of instruments such as US and Canadian stocks, options, and US bonds through Interactive Brokers’ advanced trading platforms. Each account has a contribution limit of CAD 8,000 annually, with a total lifetime contribution cap of CAD 40,000.
If the funds in the FHSA are not utilized for a home purchase within 15 years, they may be transferred tax-free to a Registered Retirement Savings Plan (RRSP), ensuring continued tax-deferred growth. The account provides long-term flexibility, making it an appealing choice for Canadians planning their financial future.
Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, emphasized the importance of the new savings solution, stating, “Our FHSA provides tax-free investment growth, low costs, and access to global markets, empowering Canadians to maximize their savings potential.”
Eligible individuals, including first-time homebuyers or those who have not owned a property in the last four years, can open an FHSA with ease through Interactive Brokers Canada. Clients will gain access to the broker’s powerful trading technology, competitive commissions, and zero platform fees, facilitating effective investment towards achieving homeownership.
For more information about the FHSA and other individual accounts for Canadian residents, visit Interactive Brokers Canada - Individual Accounts.
