FHSA

Start saving towards a down payment with the tax-free First Home Savings Account

Photo of a couple dancing in their new home surrounded by boxes.

How does an FHSA work?

The First Home Savings Account (FHSA) is a tax-free savings account meant for home purchases. It's a new registered plan that allows first-time homebuyers to contribute up to $8,000 per year, with a lifetime limit of $40,000.

Why is the FHSA the right account for me?

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Because it can help you buy your first home

The FHSA is a new registered account that will provide you tax-free savings for the purchase of a first home.

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Because you’ll pay less taxes

Your contributions made to an FHSA are tax deductible, which reduces your taxable income for the current year.

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Because your FHSA contributions aren’t limited to a down payment

If you decide to use this amount for something other than a home, you can transfer the money to an RRSP or RRIF without affecting your contribution room.

The FHSA explained in less than 1 minute

50 seconds Read the transcript

The brand-new First Home Savings Account (FHSA) is now available at National Bank. Discover its various benefits.

To open an FHSA, you must be:

A Canadian resident
The age of majority, either 18 or 19, depending on the province*, and under 71 years old
A "first time homebuyer" i.e., you and your current spouse or common-law partner must not have owned a home that you lived in as your principal place of residence, at any point during the portion of the calendar year before the account was opened and in the 4 preceding calendar years.
You must not have already used the FHSA for the purchase of a property

*The age of majority per province:

18 years old (Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Prince Edward Island)
19 years old (British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Yukon, Nunavut, Northwest Territories)

How do I open my FHSA?

Here are your options, depending on your situation.

I’m not a client yet or I’m looking for advice

Make an appointment with one of our experts to discuss your goals and investment options.

Make an appointment

I’m a client with access to my online bank

You can fill out the secure online form to open an FHSA. Please note that only managed solutions and investment funds are offered as investment products in your online bank.

The FHSA in numbers

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Up to $8,000/year and lifetime limit of $40,000

FHSA contributions can be up to $8,000 a year with a lifetime limit of $40,000.

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A 15 year lifespan

The FHSA has a lifespan of 15 years. After that time, the funds must be transferred to an RRSP or RRIF.

Tax-free income

Income and gains generated with your FHSA contributions are tax-free.

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Consider the FHSA for your tax strategy

Are you saving up for your first home and want to take advantage of the tax benefits offered by the FHSA? We're here to answer your questions.

Make an appointment

FHSA vs HBP: What are the main differences?

What is the difference between a FHSA and a HBP? And which one should you choose? It depends on your savings goals, as well as your financial and tax situation.

FHSA

The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers.

No repayment required
No withdrawal limit
Maximum annual contributions of $8,000 and a lifetime total of $40,000
No minimum holding period required for contributions to be deductible and eligible for withdrawal
The deadline for contributions to a FHSA is December 31 of each year

HBP

The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP to buy or build a first home.

Repayment required
Withdrawal limit of $35,000
Maximum annual contributions of the RRSP, which is 18% of your previous year’s income or the current fixed contribution limit
The money must be deposited into your RRSP 90 days before you withdraw it under the HBP
Deadline for RRSP contributions: 60 days after the end of the year