First Home Savings Account (FHSA)

TAX-FREE SAVINGS FOR HOME BUYING

What's an FHSA?

The FHSA is a tax-free¹ way to save for a down payment on your first home. FHSA contributions are tax deductible, and your savings will grow tax-free, just like your RRSP. You can also withdraw money from your FHSA for a qualifying home purchase without paying tax².

FHSA eligibility

To open an FHSA, you must be:

A Canadian resident between the ages 18 and 71³.
A first-time home buyer.

To learn more about whether the Canada Revenue Agency (CRA) considers you a first-time homebuyer, visit their FHSA page.

FHSA tax benefits

Contributions are tax-deductible, reducing your total taxable income.
You don’t pay tax on investment earnings inside your FHSA.
Qualifying withdrawals are not taxable.

How to maximize your FHSA

$8,000 annually

Your contribution limit is $8,000 per year, which is tax-deductible. You can carry forward a maximum of $8,000 in unused contributions to the following year.

$40,000⁴ lifetime

The lifetime contribution limit is $40,000. It doesn’t reset if you withdraw funds.

15 years

Your FHSA can remain open for up to 15 years (or until the end of the year you turn 71),

Build up your FHSA investments

Your FHSA can hold different types of investments, such as cash, mutual funds, GICs, and more. We can help you build an investment portfolio that works for you.

Guaranteed investment certificates (GICs)

GICs keep your principal investment safe and come with a guaranteed rate of return.

Explore GICs

High Interest Savings Account (HISA)

Earn a competitive interest rate on your savings with easy access to move funds to other investments.

Open a HISA

Qtrade Direct Investing™

A do-it-yourself approach for your FHSA. Make the most of low trading fees and the freedom to buy and sell stocks, bonds, ETFs, and mutual funds with confidence.

Explore Qtrade

Cher, Meridian Member. She stands in front of a house. Her arm is extended as she gestures toward her new home. — Cher Meridian Member

Tools and resources

Learn more about FHSAs

Help for first-time home buyers

Mortgage calculator: find out how much you can afford

What’s the difference between FHSA, TFSA, and RRSP

Offers for newcomers to Canada

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

Information regarding the First Home Savings Account is based on what is available from the Government of Canada as of July 2023, and subject to change.

¹Contributions and/or transfers (from your Registered Retirement Savings Plan (RRSP)) to your FHSA up to your maximum FHSA contribution room for the year are tax-deductible, and any investment income earned is tax-sheltered. Contributions in excess of your allowable FHSA contribution room will be taxed at 1% for every month it’s in your FHSA, until the excess FHSA amount is eliminated.

² Withdrawals from the FHSA to purchase a qualifying home must be made using a prescribed form.

To withdraw funds on a non-taxable basis, the holder must:

Be a first-time homebuyer at the time of withdrawal
- An individual counts as a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned or jointly owned.
Have a written agreement in place before the withdrawal to buy or build a qualifying home (in Canada) before October 1 of the year following the date of the withdrawal
Not have acquired the qualifying home more than 30 days before making the withdrawal
Intend to occupy that home as the principal place of residence within 1 year of acquiring the qualifying home
Be a resident of Canada from the time of the withdrawal until the home is acquired

If the above conditions are met, the entire balance in the FHSA can be withdrawn on a tax-free basis in a single withdrawal or a series of withdrawals.

³ To open an FHSA, you must be a qualifying individual. You are a qualifying individual if you meet all of the following requirements:

At least 18 years of age
Not more than 71 years of age on December 31 of the year
A resident of Canada
A first-time home buyer
- An Individual counts as a first-time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either:
  - You owned or jointly owned OR
  - Your spouse of common-law partner (at the time of the account opening) owned or jointly owned

⁴ The FHSA annual contribution limit is $8,000, up to a lifetime contribution limit of $40,000. You can carry forward your unused FHSA contribution room at the end of the year, up to a maximum of $8,000, to use in the following year. The maximum amount of unused FHSA participation room that can be carried forward to a subsequent year is $8,000.

*GIC interest rates expressed are annual interest rates and current as of today’s date. Rates are subject to change without notice. Interest is calculated and accrued daily. Interest is paid at maturity unless otherwise specified. The minimum required investment is $100.