THE 360 NEWSLETTER

Update client article
Following the April 13, 2023 communication, we would like to remind you that amendments have been made to the client article on the new the First Home Savings Account (“FHSA”). Below is a reminder of the key changes made:

• Joint use of the FHSA and HBP: At the time of the launch of the FHSA by the CRA a few months ago, the HBP and the FHSA could not be used jointly for the purchase of a first home. However, the rules have since been reviewed by the CRA and it is now possible for investors to combine these two products for the purchase of the same eligible home. The article has been amended to reflect this new rule.
• Unused annual contribution limit: The article has also been amended to reflect the fact that investors can carry forward their unused contributions to a subsequent year, up to a maximum of $8000 (subject to their lifetime contribution limit), and that catch-up contributions are limited to one contribution year at a time, i.e., $16,000 per year ($8,000 for the current year and $8,000 for catch-up contributions).

Please click on the following link to read the amended article, which is also available on the Advisor Centre under Marketing / Client Articles: New Tax-Advantaged Account for First-Time Homebuyers

Availability of the FHSA in Univeris
You may have received communications from some fund companies that FHSA accounts are available to open in client name at these companies. However, the industry, specifically Fundserv, is not ready to allow the exchange of files and information that would tell us that the account opened is an FHSA account type. This update to the industry files will be available in June 2023, which is when you will be able to select the FHSA account type in Univeris for your clients. Stay tuned for the next issues of your 360 as we will be sending out further communications closer to June with the exact date.