Tax-Free First Home Savings Account (FHSA)

A new way to save for your first home

The Tax-Free First Home Savings Account (FHSA) helps Canadians afford their first home by combining the benefits of the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Contributions of up to $8,000 a year are tax-deductible. Meanwhile withdrawals towards your first home purchase would be non-taxable like a TFSA.

Why should you invest in an FHSA?

    Save up to $40,000 towards your first home. That would cover the down-payment of a high-ratio mortgage on most homes.

    Get tax benefits now and later. You won't pay taxes on your investment earnings and it can help lower your annual tax bill.

    Your contribution room carries forward. So, you won't lose out as your income grows and you can contribute for up to 15 years tax-free.

    You can combine it with your partner's FHSA. If you both open FHSA accounts, you can both withdraw funds and increase your purchasing power.

How can I get an FHSA?

Here's how you can take advantage of the FHSA:

    Be a Canadian resident, 18 years or older, buying your first home. You are considered a first-time homebuyer if you or your spouse/common-law partner haven't owned any home the year you open your FHSA or four years prior.

    Have a plan. Like RRSPs and TFSAs, FHSAs will allow you to hold your investments in a variety of investment vehicles (think GICs, mutual funds*, savings accounts, stocks*, etc.), knowing your risk tolerance and investment goals now will put you in a good position when this account becomes available. Our advisors can help you with this.

    Talk to an advisor See rates**

    *Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Mutual funds, other securities and related financial planning services are offered through Credential Securities. Credential Securities is a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Financial planning services are only available from advisors who hold a financial planning accreditation through applicable regulatory authorities.

    **Since the FHSA is so new, we're still building a section on our Rates page for it. When you click this link, you'll be taken to our TFSA rates, which match our FHSA rates.

    This information is based on the Government of Canada's news release on the Tax-Free First Home Savings Account, updated 2023-02-14.

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