First Home Savings Account (FHSA)
Save up to $40,000 tax-free toward your first home, with the flexibility to invest your way.
Grow your money with an FHSA
Your FHSA can hold cash, GICs, mutual funds, stocks, bonds, ETFs, and more. Choose investments that fit your home-buying timeline and goals.
FHSA Investment Savings Account
Earn 3.20%* interest on all your savings, with easy access in branch or online.
FHSA GICs
Grow your savings through our FHSA‑eligible short and long-term Guaranteed Investment Certificates.
FHSA mutual funds, stocks and bonds
Diversify your FHSA investments like an expert with direct access to our wealth advisors.
Advantages of an FHSA
A First Home Savings Account lets you contribute pre-tax dollars and grow your savings tax-free toward buying your first home.
Pay less tax now
FHSA contributions reduce your taxable income and save you money for the future.
Tax-free growth
Your investments grow tax-free, and qualifying withdrawals for your first home are tax-free too.
15-year savings window
Keep your FHSA open for up to 15 years, giving you plenty of time to save for your first home.
Combine with the HBP
Stack your FHSA alongside the RRSP Home Buyers’ Plan (HBP) to boost your down payment.
Carry it forward
Unused annual contribution room rolls forward even if you didn’t max out this year.
Future flexibility
If your plans change, transfer unused FHSA savings tax-free to your RRSP or RRIF.
Learn how a First Home Savings Account can help you save faster and tax-free.
FHSA contribution limits
$8,000 per year
Contribute up to $8,000 annually, plus any unused carry-forward room from the previous year. The maximum combined annual contribution (current year plus carry-forward) is $16,000.
$40,000 lifetime limit
The lifetime contribution maximum acorss all your FHSAs is $40,000.
December 31
Contribute anytime throughout the year, but each contribution counts against your annual room until December 31.
Check your Notice of Assessment or contact the Canada Revenue Agency (CRA) to see your FHSA contribution limit. Keep track to avoid exceeding it.
Top 7 questions about FHSAs
Who is eligible to open a FHSA?
You are eligible to open a FHSA if you:
- are a first-time homebuyer, meaning you (or your spouse/common-law partner) have not owned a home in the year you open the FHSA or in the previous four calendar years,
- are a resident of Canada,
- are between the ages of 18 and 71, and
- have a valid SIN.
Can I use both the FHSA and Home Buyers’ Plan (HBP) government incentives?
You don’t have to choose one or the other and can even use both. If your situation allows, you can withdraw up to $60,000 from your RRSP under the Home Buyers' Plan (HBP) and make a qualifying withdrawal of up to $40,000 from your FHSA for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal.
Alternatively, if you’ve accumulated RRSP savings with the intent of using the Home Buyers’ Plan in the future but prefer the features of the new FHSA, you can transfer available RRSP funds over to the FHSA, tax-free (within the FHSA qualifying conditions including annual and maximum contribution limits).
Will opening an FHSA affect my eligibility for the Home Buyers’ Plan?
No, you will be able to use both your FHSA as well as make a withdrawal from your Registered Retirement Savings Plan (RRSP) under the Home Buyers' Plan (HBP) to purchase a qualifying home. Keep in mind that with the HBP, you’ll have to repay any funds withdrawn from your RRSP.
Is it possible to hold more than one FHSA?
It is possible to hold more than one FHSA, but the total contribution amount of all FHSAs cannot exceed the annual and lifetime limits. It’s important to keep careful track of your FHSA contributions to avoid overcontributing. Any overcontributions will result in a penalty tax on the over-contributed amount at a rate of 1% per month for each month the overcontribution remains in the FHSA.
Is there a time limit within which FHSA funds need to be used?
The funds in your FHSA have to be used by December 31 of the 15th year after opening the account, or by December 31 of the year you turn 71, whichever comes earlier. If you have not used the funds in your FHSA by that time, you can transfer the funds from your FHSA on a tax-free basis to your RRSP without impacting your RRSP contribution room, or to your Registered Retirement Income Fund (RRIF). Otherwise, you can withdraw funds from your FHSA, but your withdrawal will be taxed at your applicable tax rate.
What are the contribution limits?
Qualifying individuals can contribute $8,000 per year (by December 31) to their FHSA. Unused contributions, up to $8,000, can be carried forward to future tax years subject to a maximum lifetime limit of $40,000. Carry forward room starts to accumulate after the FHSA is opened. The account holder is responsible for ensuring their maximum contribution room limit is not exceeded.
What are the FHSA withdrawal conditions?
Since a qualifying withdrawal is non-taxable to the holder, certain conditions must be met for the holder to receive the withdrawal tax-free. When these conditions are met, a holder may withdraw funds at any time, unless restricted by investment terms (for example, a non-redeemable GIC that has not yet matured).
The conditions must be disclosed in a prescribed form provided by the CRA, and include the holder meeting the following terms:
- you’re a first-time homebuyer, meaning you (or your spouse/common-law partner) have not owned a home in the year you open the FHSA or in the previous four calendar years,
- you’re a resident of Canada,
- the withdrawal is made within 30 days of moving into the home,
- you have a written agreement to buy or build a qualifying home before October 1 of the year following the withdrawal,
- the qualifying home is in Canada.
A qualifying withdrawal does not generate taxable income and does not affect any income-tested benefits or credits of the holder.
