First Home Savings Account (FHSA)
Buying your first home is a huge financial achievement. An FHSA is the first step to getting there — and we’ll help you along the way.
Pay Less Income Tax
Like an RRSP, an FHSA reduces your taxable income — meaning a nice discount at tax time.
Keep Your Gains Tax-Free
Like a TFSA, the growth in your investments (including dividends) can be withdrawn tax-free when used towards your first home, without any payback requirements.
Transfer Without Penalties
If you don’t end up buying a home, you can transfer the money to your RRSP without affecting your RRSP contribution room.
Get to know the FHSA
$8,000
Yearly contribution limit, and unused portions can carry forward to the following year. There’s a 1% penalty for every month you over-contribute until you correct the issue.
$40,000
Total contribution space over 15 years.
1 year
The carry-over period for unused contribution room, which resets every year on December 31st. Heads up: you can’t have more than $16,000 of contribution room at any point in time.
15 years
The total time you have to use your FHSA starting from the day you opened the account.
How you invest is up to you
Have your portfolio managed by your bank or with an online company such as Wealth Simple or Questrade
Contact your bank and make an appointment to open a First Home Savings Account OR open an account online.