The FHSA is a registered savings account designed for first-time home buyers. First Home Savings Accounts offer the benefits of both tax deductions on your contributions and non-taxable earnings!
Meet with a member of our Wealth and Investment team to find out more or to open a First Home Savings Account.
The first home savings account is a registered savings plan that is targeted for first-time home buyers. To qualify for a FHSA, you need to be a Canadian resident, between the ages of 18 and 71, and it must be used for the purpose of buying your first home. You are considered a first-time homebuyer if you or your spouse/common-law partner did not own the home that you lived in in the year you open an FHSA or the preceding four calendar years.
Your contributions are tax-deductible (like an RRSP)
Any gains you make, as well as withdrawals, are completely tax-free (like a TFSA) as long as they are used toward the purchase of a qualifying home.
Funds left in the FHSA that aren’t used towards the purchase of a home can be transferred to an RRSP or RRIF tax-free.
You can fill your FHSA with a variety of investments such as cash, GICs, mutual funds, ETFs, stocks, or bonds*.
You must be a Canadian resident between the ages of 18 and 71 years of age.
You or your spouse must be a first-time home buyer who hasn’t lived in a qualifying home in the current year or anytime in the preceding 4 years.
The rules for contributing and withdrawing funds from your FHSA have been outlined by the Government of Canada.
You can contribute a maximum of $8,000 to your FHSA in the first year you open it, and in each subsequent year to a lifetime limit of $40,000.
Your contribution limit includes any funds you transfer from your RRSP.
You have a maximum of 15 years from the time you open your FHSA, or the end of the year in which you turn 71, until you need to withdraw the funds from your FHSA.
You must be a first-time home buyer and a resident of Canada at the time of purchasing your qualifying home.
A qualifying home must be located in Canada.
It can be part of a co-op or a condo.
You must have a written contract to build or buy a home before October 1 of the year following the year of withdrawal.
You must occupy that home as your principal place of residence within one year of building or buying it.
You have two options if you don’t end up buying a home:
You can transfer the funds to your RRSP or RRIF within 15 years or at the time you need to close your FHSA. This will not affect your RRSP contribution room.
You can withdraw the funds, but they would be subject to withholding taxes.
The Home Buyers’ Plan allows you to withdraw up to $35,000 from your RRSP towards the purchase of a home, but these funds need to be paid back to the RRSP over 15 years.
The FHSA funds do not need to be paid back to the RRSP.
The FHSA and Home Buyers’ Plan can be used together for funds required to purchase your first home.
What you need to know about the First Home Savings Account and how it can help eligible first-time homebuyers save for a home.
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Explore Canada's registered savings accounts, including the FHSA, and discover how different options can support your financial goals.
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