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.
A smart way to save for your down payment
Reduce your yearly tax bill
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Like a TFSA, the growth in your investments (including dividends) can be withdrawn tax-free when used towards your first home, without any payback requirements.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 31. 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.
Who qualifies for an FHSA?
You’re considered a first-time home buyer if you’re a Canadian resident aged 18-71 who didn’t live in a home that you or your spouse owned in the last four years.
You are not considered a home buyer if you intend to purchase an investment property.
How you invest is up to you
Have your portfolio managed by our advisors
With Managed investing, we do the heavy lifting. Tell us your goals and timeline and we’ll invest your money in a diverse range of assets.
Independently trade stocks and ETFs
A Self-directed account allows you to buy and sell over 14,000 stocks and ETFs commission-free. You can automate your investments, and start trading right away with up to $250,000 in instant deposits.
Open your FHSA as a HISA
With a High Interest Savings Account, you can earn up to 3% interest on your savings without the risk of stock market fluctuations — and you can withdraw at any time, too.
What’s the difference between an FHSA and an RRSP?
When it comes to buying your first home, there are multiple ways to save up. Think of your FHSA as a complement to other savings accounts — not a replacement.
Attribute | FHSA | RRSP (Home Buyer's Plan) |
|---|---|---|
| Helps you save for | Your first home | Retirement |
| Eligibility | First time home buyers | 18-71 years old |
| Annual contribution limit | $8,000 (up to a max of $40,000) | 18% of previous year's income, up to $31,560 |
| Tax impact on contributions | Deducted from taxable income | Deducted from taxable income |
| Tax impact on withdrawals | Growth and withdrawals towards your first home are tax-free | Taxed as income (with some exceptions) |
| Contribution deadline | December 31 | 60 days after December 31 |
| Government benefits | No impact on other benefits | Withdrawals may impact other government benefits based on income |
| Withdrawal stipulations | None | Must withdraw to RRIF at 71 |
We’re a great home for your FHSA
Start investing in minutes
Open your account without any bank appointments or paperwork. Making your contributions (or withdrawing when the time comes) only takes a few taps.
Reach out to us for support
Questions about your FHSA? Our team is here to help — just get in touch.
Keep more of your returns
Whether you’re picking your own stocks or letting us manage the investing, you won’t need to worry about high fees eating into your returns.
Move your money to Wealthsimple, we'll give you back the transfer fees
We'll automatically reimburse the transfer-out fees charged by your brokerage when you move at least $15,000 to us. Conditions apply
Even more ways to grow your wealth
There’s no place like your first home
Open an FHSA without any paperwork or visits to a bank, and start saving up for your first home today.