CIBC CELIAPP

CIBC FHSA launch contest

To the point From November 8, 2023 to February 29, 2024, open an FHSA with CIBC for a chance to win an annual contribution of $8,000 to be deposited into your FHSA.

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In 2023, the First Home Savings Account (FHSA) was introduced in Canada to help Canadians save tax-free for the purchase of a first home. This is undoubtedly the most advantageous registered plan, with tax-deductible contributions and tax-free withdrawals for the purchase of a first eligible home. CIBC is offering this new FHSA account to its customers through CIBC Securities and its brokerage platform CIBC Investor’s Edge. This article explains how the FHSA works, the advantages of opening an FHSA with CIBC Investor’s Edge, and how CIBC can help.

01. FHSA CIBC EN

What is an FHSA and how does it work?

The First Home Savings Account (FHSA) is a savings plan introduced in Canada in 2023. It allows eligible first-time homebuyers to contribute up to $8,000 per year tax-free, to a lifetime maximum of $40,000. Contributions are tax-deductible like RRSPs, and can be carried forward into the future (until the FHSA is closed). Investment income is not taxable, whether it is from capital gains, dividends or interest income. Unlike the HBP (RRSP), withdrawals for the purchase of a first eligible property are not taxable and do not have to be repaid.

In summary, here are the key elements of the FHSA:

  • Objective: tax-sheltered savings for the purchase of a first home.
  • Contribution room: $8,000 per year, up to a lifetime maximum of $40,000.
  • Tax deductions: contributions are tax-deductible for the current year and can be carried forward into the future.
  • Catch-up of contributions: Catch-up of unused contribution room is limited to one contribution year at a time (a maximum of $16,000 per year, including $8,000 for the current year and $8,000 for the catch-up for one year).
  • Withdrawals: Withdrawals are tax-free for the purchase of a first eligible property.
  • Transfer from RRSP to FHSA: Funds held in an RRSP can be transferred to an FHSA, provided the contribution room of the FHSA is respected.

Find out more about the FHSA :

What are the advantages of opening an FHSA with CIBC Investor's Edge?

The advantages of opening an FHSA with CIBC’s trading platform (CIBC Investor’s Edge) are numerous, including:

  • No minimum balance.
  • No account fees for FHSA (same as TFSA and RESP).
  • Invest in stocks, ETFs, options and more.
  • Tools and resources for all types of investors.
  • Trading fee of $6.95 per transaction for equities and ETFs.
  • Offer for young investors (commission-free trading) and student investors (reduced commission trading).
  • Periodic investment plan to contribute at the desired frequency.
02. FHSA CIBC EN

How does the CIBC FHSA launch contest work?

To launch the FHSA at CIBC Securities and CIBC Investor’s Edge, CIBC is launching the following contest:

From November 8, 2023 to February 29, 2024, open an FHSA with CIBC for a chance to win an annual contribution of $8,000 to be deposited into your FHSA. No purchase necessary.

The contest is open to residents of Canada who have reached the age of majority in their province or territory of residence (18 or 19) and who are eligible to open an FHSA.

To be automatically entered in the contest, you must :

  • Be a CIBC customer and have a CIBC account open at the time of contest entry and at the time of prize award.
  • Open a CIBC FHSA account offered by CIBC Investor Services or CIBC Securities during the contest period (visit a CIBC branch, call CIBC Telephone Banking or open an Investor’s Edge account online).
  • Contribute at least $500 to the FHSA during the contest period and keep this amount in the FHSA until the draw.

As mentioned above, there are no fees to open an FHSA at CIBC.

To enter the contest without paying a fee, you must write an original text of at least 250 words describing what you like or don’t like about your banking experience.

Of course, there is a limit of one entry per person, regardless of the method of entry.

In all, there are three $8,000 prizes up for grabs. Prizes will be awarded no later than May 29, 2024 in the form of a check or cash deposit to the CIBC deposit account (depending on the method of entry).

To find out more about the contest or CIBC’s FHSA, visit this page.

Bottom Line

In short, the FHSA is undoubtedly the most advantageous registered plan in Canada. In particular, with tax-deductible contributions such as RRSPs and tax-free withdrawals for the purchase of a qualifying first home. For the launch of the FHSA, CIBC launches a contest. From November 8, 2023 to February 29, 2024, you could win an annual contribution of $8,000 to be deposited into your FHSA when you open an TFSA with CIBC.

Frequently Asked Questions

Here are answers to the most frequently asked questions about the FHSA and the CIBC Investor’s Edge brokerage platform.

What is an FHSA?

This post is also available in:
FR

In 2023, a new tax-free savings account was introduced in Canada to help Canadians access the real estate market: the First Home Savings Account (FHSA). It allows first-time home buyers to save up to $40,000 tax-free.

This post is also available in:
FR

What's the difference between a TFSA and an FHSA?

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FR

The FHSA and the TFSA are two different registered savings plans. The Tax-Free Savings Account(TFSA) is a tax-sheltered savings account. Contributions are not tax-deductible, but withdrawals are tax-free, for whatever reason. The contribution limit varies from year to year, but is $7,000 for 2024. The First Home Savings Account (FHSA) allows eligible first-time home buyers to save up to $40,000 tax-free. FHSA withdrawals are not taxable if used to purchase or build a qualifying first home.

This post is also available in:
FR

Where can I open an FHSA? Which bank offers the FHSA?

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FR

You can open an FHSA at any financial institution, chartered bank, credit union, trust company or insurance company. However, not all financial institutions currently offer the FHSA. To find out which banks currently offer the FHSA, see “ Which bank offers the FHSA?“.

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FR

What is the CIBC online brokerage platform?

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FR

CIBC’s online brokerage service is called CIBC Investor’s Edge. This brokerage platform allows you to invest in stocks and exchange-traded funds (ETFs) on your own, as an independent investor. It can also be used to invest in fixed-income securities and mutual funds. Several types of investment accounts are available, including registered accounts, tax-free savings accounts and margin accounts. Finally, CIBC Investor’s Edge offers a wide range of tools and resources to help you build and manage your investment portfolio.

This post is also available in:
FR

Who is eligible to open an FHSA?

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FR

Canadian residents who have reached the age of majority in their province or territory and are first-time homebuyers can open an FHSA. To find out more, see “ Opening an FHSA “.

This post is also available in:
FR

This post is also available in: FR

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Vincent
My name is Vincent and I've been a stay-at-home parent to two young boys since achieving financial independence in 2021 (FIRE). Previously, I worked for 12 years in financial technology for a major US investment bank (G-SIB). I'm passionate about personal finance, stock market investing, reading, writing, cycling and gardening. I'm also the founder of Retraite 101, a personal finance blog followed by over 20,000 people on social networks and quoted in several media, blogs and finance books. Despite early retirement, I continue to write about personal finance to share my passion with Quebecers and motivate them to take charge of their finances.

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