General Archives - Timothy Hasenack Dominion Lending Centres

The First Home Savings Account aka FHSA is a new savings tool that allows first time home buyers the opportunity to save for their first home while using that initial savings as a tax deduction and having that savings grow tax-free. It is like having an RRSP and TFSA rolled into one except upon withdrawal, the amount does not have to be paid back to the account like an RRSP.

Maximum contributions are $8000 per year to the maximum contribution limit of $40000.

The money must be used for the individuals’ first house within 15 years of opening the account.

If an individual deposits $8000 before Feb 29/24 they’ll be allowed to use the $8000 as a tax deduction for their 2023 taxes.

If the Canadian pays a tax rate of 30%, they’ll receive a $2400 tax refund. This can then be reinvested into the FHSA providing the individual with $10400 earning power this year in their FHSA. That $2400 can then be applied to next year’s tax deduction providing the individual with another $720 tax refund next year.

Within one year the individual will have $11120 towards their first home on a $8000 investment. That’s a 39% return on their investment and that does not include any profits from the investment itself.

Here are five tips from one of Canada’s independent credit rating companies maximizing your credit rating. The better your credit rating the better rates you will offered on your mortgage.

Pay on time: One of the best things you can do to improve your credit scores is to pay your minimum payments on time, every time. You can see late payments in the accounts section of myEquifax.
Keep your credit utilization rate low: It’s typically best to use 30 percent or less of the credit available to you on your revolving credit accounts, such as credit cards. You can see your credit utilization rate for creditors who report into Equifax on your myEquifax dashboard.
Limit applying for new accounts: Applying for new credit accounts will usually lead to a hard inquiry on your credit report. Sometimes these can negatively affect your credit scores for a short period of time. You can see the inquiries from creditors who check your Equifax credit report in the inquiries section of myEquifax.
Keep old accounts open: One of the factors in calculating credit scores is “average age of accounts,” so keeping paid-off accounts open can help maintain the length of your credit history, and help improve your credit scores.
Review your credit reports regularly: It’s important to check your credit reports regularly for any unpaid balances or past-due accounts, which can negatively impact your credit scores. You can also check for inaccuracies or signs of identity theft, such as credit accounts you didn’t apply for or a phone number that doesn’t belong to you.

Timothy Hasenack, HBA

Mortgage Agent Level 1

General

First Home Savings Account

Tips to Improve Credit Score

Here are five tips from one of Canada’s independent credit rating companies maximizing your credit rating. The better your credit rating the better rates you will offered on your mortgage.