CIBC FHSA launch contest

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 :

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.

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.