A single individual (Mr. X) acquired a land lot in 2000, made contributions to his FHSA starting in May 2023 and then commenced, using the services of subcontractors such as electricians and plumbers well as his own services, to build a single-family home on his land. He expects the house would be habitable by him on September 1, 2024, and his intention was to begin living in it on that date. Mr. X would like to withdraw all of his FHSA contribution on June 1, 2024. Regarding the requirement in para. (c) of the “qualifying withdrawal” definition that Mr. X prior to the withdrawal time have entered into an agreement for the acquisition or construction of the qualifying home before October 1 of the following calendar year, CRA stated:
We consider that in such a situation, he could generally satisfy the conditions set out in the definition of "qualifying withdrawal", in particular to the extent that those written agreements [with the subcontractors] show that sufficiently significant work was undertaken to complete the construction of the qualifying home before October 1 of the calendar year following that in which the amount withdrawn from the FHSA was received.