Group First Home Savings Account
The perfect account for your team members to save for their first home.
What’s in it for your employees
A lower yearly tax bill
Like a GRRSP, a GFHSA reduces your plan members’ taxable income — meaning a nice discount or even money back on their tax return.
Tax-free gains
Any growth in investments (including dividends) can be withdrawn tax-free when used towards a first home purchase, without any payback requirements.
Penalty-free transfers
If an employee doesn’t end up buying a home, they can transfer the money to a personal RRSP without affecting their contribution room.
The Group FHSA by the numbers
$8,000
The yearly contribution limit. Unused portions can carry forward to the following year, but a 1% penalty applies for every month you over-contribute until you withdraw the excess funds.
$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. The total contribution room can’t exceed $16,000 at any point in time.
15 years
The total time limit on a GFHSA, starting from the day the account is opened. Before this limit is reached, you must either purchase a home or transfer the funds to another account.
Who qualifies for a GFHSA?
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 qualify as a first-time home buyer.
”Owning” a home is defined as owning 90% or more of the home’s purchase price.
Investment property purchases are not considered first-home purchases.
Compare our top group savings accounts
There are multiple ways to save up for a home. The GFHSA should be thought of as a complement to other savings accounts, rather than a replacement.
Attribute | GFHSA | GRRSP |
|---|---|---|
| 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 $32,490 |
| 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 31st | 60 days after December 31st |
| Government benefits | No impact on other benefits | Withdrawals may impact other government benefits based on income |
| Withdrawal stipulations | None | Must withdraw to a Retirement Income Fund at 71 |
Why go with Wealthsimple
Easier plan management
With an intuitive and easy-to-use dashboard that integrates with most HR systems, onboarding is simple and your everyday admin is efficient and smooth.
Expert knowledge
From personalized advisor-managed portfolios to plan support whenever you need it, you and your employees are always in the best hands.
More savings
Most of your employees will pay less than 1% in management fees, meaning your team can reach their savings goals faster — while you’re saving, too.
Transferring your group plan is easy
Have an existing group plan with another provider? We’ll guide you through our seamless transfer process, and in most cases, reimburse any fees involved in transferring your accounts.
Group accounts for any savings goals
No two employees are the same — that’s why we offer a range of group account types to suit what they’re saving for.
Set your team up with more ways to save
Tell us about your company and we’ll be in touch to help you get started.