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First Home Savings Account (FHSA)


What is a First Home Savings Account (FHSA)?
Saving for your first home just got a little easier with the introduction of the new First Home Savings Account. A FHSA combines the features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). Like an RRSP, contributions you make to a FHSA are tax-deductible; like a TFSA, withdrawals you make to purchase a first home will not be taxable.

However, unlike the Home Buyers’ Plan, the funds from the FHSA do not need to be paid back.

Who qualifies?

FHSA is available for Canadians, who are 18 years old or older. A first-time homebuyer (meaning, you and/or your spouse or common-law partner) have not owned a home in the year the account is opened or the preceding four calendar years.

Contact us today to learn about our current rate.


Perks of a FHSA

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Carryover forward unused contribution limit

Contribute up to $40,000 over your lifetime with $8,000 in any one year. This includes 2023 as long as the account is open in that year, no matter when the product is available. You may carry forward up to $8,000 of your unused annual contribution amount up to $16,000 in a given year.

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Grow your money faster

Since your investment is not taxed, your money has the opportunity to grow faster in an FHSA than a traditional savings account. Any funds and investments that stay in your FHSA grow tax-free with every contribution - the more you contribute the faster your savings grows.

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Withdrawal tax-free for home

Funds withdrawn to make a qualifying home purchase are tax-free. Any funds not used towards a home purchase may be transferred to an RRSP or RRIF penalty free and tax deferred or you can also withdraw as taxable income. Transfers must happen before the end of the year following the year that the first qualifying withdrawal was made.

Saving for Your First Home

Buying your first home comes with so many mixed emotions. With the right financial advice, getting into the real estate market doesn’t need to be unnerving.

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