The tax-free way to save for your first home
What is an FHSA?
FHSA is a tax-advantaged registered savings account designed to help first-time homebuyers save for a down payment. It combines some aspects of an RRSP and TFSA. Contributions to an FHSA are tax deductible, and withdrawals and income gains are tax-free when used to buy a first home.
You have the flexibility to save for a home on your timeline, whether you plan to become a homeowner soon or in a few years.
Qualifying Investment Options
You can hold various investments in an FHSA including:
Ready to buy your first home? Your contributions and income gains are tax-free when you meet the FHSA withdrawal conditions:
Frequently Asked Questions
What happens to my FHSA funds if I don’t buy a home?
The funds in a FHSA grow tax-free and the withdrawals are tax-free if you meet the conditions to buy a qualifying home.
If you don’t buy a home, you can:
Can I hold an FHSA with my spouse?
No, the FHSA is an individual account and can’t be held jointly with another person. You and your spouse can each open an FHSA provided you are both first-time homebuyers.
What happens if I overcontribute to my FHSA?
If you contribute more than the allowed amount to your FHSA, you will incur a 1% penalty on the excess contribution. This penalty will continue until you either withdraw the extra amount or wait for additional contribution room to become available, eliminating the excess.