Buying your first home is an exciting experience and a significant milestone. With the recent introduction of the First Home Savings Account (FHSA), Central 1’s Trust Services team took the lead in supporting financial institutions with an approved FHSA solution.
As a centralized service partner, Central 1 collaborates closely with credit unions and financial institutions to provide essential banking services to meet Canadians’ financial needs — enabling FHSAs is an example of how we do this.
This initiative positioned credit unions ahead of many Canadian banks, empowering them to better assist Canadians in achieving their dream of homeownership.
Delivering efficient operations support
Central 1 is registered with the Canada Revenue Agency to offer FHSA accounts and offers this product under a bare trustee arrangement. This approach allows credit unions to focus on nurturing member connections while Central 1 handles operation and regulatory compliance.
Our Trust Services team specializes in registered financial products[1] that comply with the high standards of federal and provincial regulations. We guide credit unions through a number of complexities, including legal frameworks, regulatory filings, and estate and tax administration. Equipping credit unions with the necessary resources and tools to effectively manage FHSA and similar registered plans is one of the ways we help your members and customers.
Supporting financial institutions every step of the way
Early in December 2022, Central 1 introduced an FHSA brochure — a detailed and informative digital guide helping our clients implement FHSA. This resource has been well received by credit unions and their service providers, and has become a standard support for training and system development for this new product.
Recognizing the dynamic regulatory and tax landscape, Central 1 diligently monitors legislative changes to make sure credit unions stay compliant and up-to-date with evolving regulations.
March 2024, Canada’s housing agency made the decision to phase out the previous first-time homebuyer incentive in favor of prioritizing the First Home Savings Account as a more effective means of supporting first-time homebuyers.
Regardless of whether financial institutions need one, some, or all of our financial services, Central 1 has flexible and comprehensive solutions to help expand your product offerings and better serve your members or customers today and into the future.
Learn more about Central 1’s FHSA offering: First Home Savings Account
Learn more about Central 1’s Trust Services: Trust Services
[1] Registered financial products are a range of tax-deferred plans that financial institutions can offer customers to support their financial goals like buying their dream home, supporting their children’s education, providing long-term care for a child or person with a disability, or planning for a golden retirement.
