Tax-Free Savings (TFSA) | Creston & District Credit Union

Because it’s tax-free, you pay no taxes on investment earnings, ensuring your savings grow faster and getting you into your first home earlier.

Enjoy the benefits of a FHSA

Grow your money — Your FHSA is tax-free, and all your investment earnings are compounded for faster savings. Contributions are tax-deductible - every dollar contributed can be deducted against your income in the year of deposit, or it can be carried forward indefinitely to claim in a future tax year.
Use it towards your first home — Your FHSA can be used towards purchasing your first home - meaning, you have not owned a home, in which you lived in, any time during the year the account is opened or at any time in the preceding four (4) years. Upon redemption, the amount withdrawn is not included in your income purchase. Unused amounts can be transferred tax free to your RRSP or RRIF, or paid out (as taxable income).
Build contribution room — Starting April 1, 2023, qualifying individuals can contribute $8,000 per year. Unused contributions, up to $8,000, can be carried forward to future tax years - to a maximum lifetime limit of $40,000.

Participation period — A FHSA can only be open for 15 years and must be closed by the end of the year when the holder reaches age 71. The FHSA must be closed within one (1) year of making a qualifying withdrawal to purchase your first home.
Eligibility — A FHSA is available to individuals who are a resident of Canada, between the ages of 18 and 71, have a valid SIN, and are a first time home buyer.
Flexible investing options — Maximize your contributions by having you and your spouse or partner open separate FHSAs. This could potentially double your down payment towards your first home! You may also hold as many FHSAs as you wish, as long as you do not exceed the overall annual and lifetime limits set by the Canada Revenue Agency. Your FHSA can hold a number of investments, including Term deposits and mutual funds.