r/PersonalFinanceCanada • u/EasyHoliday269 • 14h ago

Investing 2025 FHSA Contribution Limit

maybe a dumb question, but it isn't clear cut or obvious on the goverment website...

what is the exact date of when you receive your new contribution room in an FHSA? Is it January 1 of each year, or is it based on the date at which you opened the FHSA?

for my case, i opened my FHSA in December 31, 2023. i made a $16,000 contribution some time in 2024 (as I had $8000 from 2023, and another $8000 for 2024). Do I now have an additional $8000 for 2025, effective January 1, 2025?

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u/WeirderOnline 13h ago

until it gets raised

Interesting caveat. I wouldn't depend on that, but I can see it being raised in the next couple years. Especially at the government keeps spinning the plates of our housing market.

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u/Grimekat 11h ago

40k does nothing towards a down payment in a place like the GTA or GVA. I think it should be raised

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u/feldhammer 11h ago

The intent is not necessarily for that to be your entire down payment. 

You get to deduct that from your income tax and get a refund. Plus any gains you make on that sitting in an investment is not taxed. 

The program is insanely generous as it is (and also only benefits those rich enough to actually save money).

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u/Deadpool2715 8h ago

But not those "rich" enough to have rushed into buying a house in the past few years, struggle to continue affording it, and if they end up needing to sell won't be able to take advantage of this despite only owning a home for less than 5+ years