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First Home Savings Account (FHSA)

Your Path to Homeownership and Financial Stability

What is an FHSA?

The First Home Savings Account (FHSA) is a revolutionary financial product tailored for Canadians seeking to embark on their homeownership journey. It seamlessly combines the benefits of Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP), providing a unique avenue for prospective first-time homebuyers to save for a down payment.

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Tax Advantages

Enjoy tax-deductible contributions and tax-free withdrawals for your first home purchase.
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Flexible Contributions

Contribute up to $8,000 annually, with a lifetime maximum of $40,000, catering to your savings goals.
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Invest With Recurring Deposits

Secure your financial future with automated transfers to your FHSA, establishing a reliable investment routine tailored to your goals.
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Seamless FHSA Closure Process

Close your FHSA account easily after 15 years (from opening date) or at 71, with unused funds transferable tax-free to an RRSP or RRIF.
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Tailored for First-Time Buyers

FHSA is designed specifically to help first-time homebuyers, offering benefits tailored to their needs.
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Strategic Homeownership Tool

More than just an account, FHSA is your strategic tool for realizing homeownership dreams, offering exclusive benefits and advantages.

FHSA Frequently Asked Questions


To be eligible to open a First Home Savings Account (FHSA), individuals must meet the following criteria:

  1. Age: They must be between the ages of 18 and 71.
  2. Tax Residency: They need to be current tax residents of Canada.
  3. Homeownership History: They should not have lived in a home that they or their partner owned in the current calendar year or any of the previous four calendar years.
  4. Intended Purpose: They must be opening the account to save for buying a qualifying home in Canada.

Yes, you can use both the First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP) government incentives simultaneously. The FHSA is designed to help Canadians save for a down payment on their first home, offering tax advantages for contributions and withdrawals. Meanwhile, the HBP allows first-time homebuyers to withdraw up to $35,000 from their RRSPs tax-free to put towards a down payment. By utilizing both incentives, you can maximize your savings and financial assistance towards purchasing your first home.

No, opening a First Home Savings Account (FHSA) does not affect your eligibility for the Home Buyers' Plan (HBP). The HBP allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plans (RRSPs) to put towards a down payment, regardless of whether they have an FHSA or not. These are separate government initiatives aimed at assisting individuals in saving for their first home, and one does not impact eligibility for the other. Therefore, you can utilize both the FHSA and HBP to maximize your savings and benefits towards purchasing your first home.

No, individuals who have owned a home in the current calendar year or any of the previous four calendar years are not eligible to open an FHSA.

While you don't need to be a first-time homebuyer to contribute, the purpose of the account must be for saving towards buying a qualifying home in Canada.

No, there are no income or employment status restrictions for opening an FHSA. As long as you meet the age and residency requirements and haven't owned a home in the specified timeframe, you're eligible to open an account.

Investing with an FHSA

Discover the flexibility of our FHSA investment options, offering both variable terms and fixed terms ranging from 1 to 5 years, tailored to suit your financial goals and preferences.

No, it is not possible to hold more than one First Home Savings Account (FHSA). The rules governing the FHSA program specify that individuals are limited to one FHSA each. Holding multiple FSAs would not be permitted under the program guidelines. Therefore, you can only have one FHSA to save towards your first home purchase.

Yes, there is a time limit within which First Home Savings Account (FHSA) funds need to be used. If the funds in your FHSA are not used within 15 years of opening the account, you will need to close the account or transfer the funds within to a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF). This time limit ensures that the FHSA is used for its intended purpose of saving for a first home purchase within a reasonable timeframe.

Contributions and withdrawals

The contribution limits for a First Home Savings Account (FHSA) are as follows:

  1. Annual Contribution Limit: Individuals can contribute up to $8,000 per year to their FHSA. Unused contributions can be carried forward to subsequent years, with a maximum carry forward of $8,000.

  2. Lifetime Contribution Limit: The lifetime contribution limit for an FHSA is $40,000.

These contribution limits are set by the government and are subject to change. It's essential to monitor any updates or changes to contribution limits to ensure compliance with FHSA regulations.

The withdrawal conditions for a First Home Savings Account (FHSA) are as follows:

  1. Withdrawal for First Home Purchase: Withdrawals from an FHSA for the purpose of purchasing a first home are tax-free and do not incur any tax consequences.

  2. Closure of Account: If funds are withdrawn for a first home purchase, the FHSA must be closed within one calendar year of the first withdrawal. Once closed, the account holder will no longer be eligible to open another FHSA.

  3. Taxable Income: Withdrawals from an FHSA that are not related to a first-time home purchase will be considered taxable income and may be subject to taxation.

  4. No Repayment Required: Unlike certain other homebuyer programs, such as the Home Buyers' Plan (HBP), withdrawals from an FHSA do not need to be repaid into the account.

  5. Use with Other Programs: FHSA withdrawals can be used in conjunction with other homebuyer programs, such as the Home Buyers' Plan (HBP), to fund a down payment on a first home.

It's important to adhere to these withdrawal conditions to ensure compliance with FHSA regulations and maximize the benefits of the account for purchasing a first home.