Saving for your down payment with a FHSA
Enjoy tax-deductible contributions and tax-free growth while you save for a first home with our First Home Savings Account (FHSA).
Benefits of a First Home Savings Account
Tax-sheltered savings
Contributions are tax-deductible plus income growth is tax-free for your qualifying first home purchase.
Compound growth
Contribute early in your higher-income years so your investment magnifies through the effects of compounding.
Generous contribution limits
You can contribute up to $8,000 per year to your FHSA, with a maximum lifetime contribution limit of $40,000.
Carry over allowance
Carry forward the unused portion of your annual contribution limit to any subsequent year.
Combine FHSA with Home Buyer's Plan
Combine your FHSA and RRSP's Home Buyer Plan for up to $100,000 towards your first home.
In-kind contributions
Transfer in-kind or contribute non-registered securities. The investment must qualify under the Income Tax Act.
How does an FHSA work?
The FHSA is an easy way to save towards a down payment on your first home. Unlike a TFSA which can be used for big-ticket purchases or unexpected expenses, or an RRSP that is used to save for retirement, a FHSA helps open the door to home ownership.
- Annual contributions of $8,000, with a lifetime contribution limit of $40,000.
- Maximum $8,000 unused contribution room can be carried forward to the following year.
- Your account can stay open for a maximum of 15 years and must be closed by the end of the year you turn 71.
Who can open an FHSA?
You are eligible to open an FHSA as long as you meet all of the following requirements:
- You are a resident of Canada at the time of your home purchase.
- You are between the ages of 18 and 71.
- You have a valid social insurance number.
- You are a first-time home buyer.
Not sure if you qualify? Talk to us.
Comparing the FHSA, TFSAs and RRSPs
The FHSA, TFSA and the RRSP all offer tax-efficient savings. While each is designed to help you save for different end goals, there are these key differences between them.
| Feature | FHSA | TFSA | RRSP |
| Purpose | Save for down payment | General savings | Save for retirement |
| Tax deductible deposits | ✓ | ✗ | ✓ |
| First 60-day contribution provision | ✗ | ✗ | ✓ |
| Residency Requirements (Resident of Canada when the account is opened) | ✓ | ✓ | ✗ |
| Contribution limit based on earned income | ✗ | ✗ | ✓ |
| Spousal contributions allowed | ✗ | ✗ | ✓ |
| Qualifying withdrawals impact federal gov't benefits | ✗ | ✗ | ✓ |
| Maximum age limit (71) | ✓ | ✗ | ✓ |
| Tax free growth | ✓ | ✓ | ✓ |
| Tax-free withdrawals | ✓ | ✓ | ✗ |
| Pay back requirements | ✗ | ✗ | ✓ |
Not sure which is right for you? Talk to us.
About deposit protection
Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
