FHSA

What is the FHSA?

It’s a combination of the RRSP and the TFSA. Similar to an RRSP, FHSA contributions are tax-deductible, and the investment income earned accumulates tax-free. And like a TFSA, withdrawals from the FHSA are not taxable. 

Benefits of the FHSA

• ✓ Tax-deductible contributions 
• ✓ Tax-sheltered investment income¹
• ✓ Tax-free withdrawals for the purchase of a property  

For whom?

• ✓ Be a Canadian resident
• ✓ Aged between 19 and 71 years old
• ✓ Have not owned a home in the past four calendar years

¹Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise indicated, mutual funds, other securities, and cash balances are not insured by the Canada Deposit Insurance Corporation or any other public deposit insurance agency that insures deposits in credit unions.

How does the FHSA work? 

The FHSA is a financial tool introduced by the Government of Canada to help people save for the purchase of a first home. It allows you to accumulate up to $40,000 tax-free, with the option to withdraw funds tax-free when you buy a property. You can contribute up to $8,000 per year, and your funds can be invested to grow your savings. When it’s time to buy or build your first home, you can withdraw the funds tax-free for a downpayment or other purchase-related expenses.  

How do I grow my FHSA? 

Growing your FHSA involves investing the money you contribute to generate returns, while taking advantage of tax benefits. The Aviso Wealth Advisors at UNI are here to guide you toward the right investment strategy for your timeline, goals and risk tolerance.

Compare the FHSA to other registered plans

As its name suggests, the first home savings account (FHSA) is designed for buying your first home. It combines the benefits of the most popular savings plans, such as the tax-free savings account (TFSA), which allows your contributions to grow tax-free. And as with the Home Buyers’ Plan (HBP) linked to the registered retirement savings plan (RRSP), withdrawals for first-time home buyers are tax-free. The FHSA is the ideal tool for buying your first property. 

*Certain conditions apply. 

Most popular questions

Ressources

Plan your savings with the FHSA Estimation Tool
Use the CRA’s calculators to estimate the growth of your savings and visualize potential tax savings. You can also consult the CRA’s official source to understand the FHSA rules in detail, from opening the account to making withdrawals.