First Home Savings Account

First Home Savings Account (FHSA)

A new way to save for a first home

Get an immediate tax break

Any contributions you make reduce your taxable income, so you pay less tax whenever you save.

Tax-free growth and withdrawals

All investment growth is tax free, including interest, dividends and capital gains, plus you pay no tax when you make a qualifying withdrawal.

Contribute up to $40,000

The portfolios are well diversified across regions and asset classes to grow your investment.

What is an FHSA?

A First Home Savings Account is a registered savings plan that allows Canadians to save for their first home much faster, with some of the advantages of both an RRSP and a TFSA. Your contributions reduce your taxable income, your savings grow tax free, and all qualifying withdrawals are tax free. 

How an FHSA help you save
for your first home faster

 

  • Pay less income tax when you make contributions because your taxable income will be reduced.
  • None of your investment growth will be taxed, so your savings grow faster, enjoying more benefits from compounding interest.
  • Contribute up to $8,000 per year for a maximum of $40,000 in contributions. Unused contribution room can be carried over to the following year.
  • You can withdraw from your FHSA savings with the Home Buyers’ Plan (which allows you to use up to $35,000 of your RRSP savings) so you can have an even bigger down payment to buy your first home.
  • When it comes time to make a qualifying withdrawal, all the money — your contributions and investment growth — is completely tax free.
  • If you end up not using any FHSA money, it can be transferred tax free to an RRSP or RRIF.
  • An FHSA can hold the same range of investments as a TFSA, and RRSPs.

Frequently asked questions

General

Contributions

Carryforwards

Withdrawals

Home Buyers Plan and FHSA

Penalties

Closing

Resources and forms

Article

A new way to save for a first home

A First Home Savings Account (FHSA) is a registered plan that allows first time Canadian home buyers, to save for their first home, tax-free.

Podcast

Trends and challenges facing Canada’s real estate market

Join us for an in-depth discussion on Canada’s dynamic real estate market. In this episode, hosts Matthew Schnurr and Dustin Reid are joined by Ben Rabidoux, founder of North Cove Advisors, who explores the key trends and challenges facing this ever-evolving market. Discover how supply dynamics are affecting affordability, gain insights into the risk factors associated with pre-construction condos and learn about the critical role of interest rates and a higher-for-longer rate environment.
 

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Application form

First Home Savings Account (FHSA)

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Transfer from your FHSA to your FHSA, RRSP or RRIF

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Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder

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Transfer from an FHSA to another FHSA, RRSP or RRIF on Breakdown of Marriage or Common-law Partnership

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Joint Designation for a Deemed Transfer or Distribution from an FHSA After the Death of the Holder

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Designate an Excess FHSA Amount as a Withdrawal from your FHSA or as a Transfer to your RRSP or RRIF

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Request to Make a Qualifying Withdrawal from your FHSA

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The content of this web page (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This should not be construed as legal, tax or accounting advice. This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique.  We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate.  There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.  We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document.  Please consult your own legal and tax advisor.