First Home Savings Account (FHSA)

What is it?

A First Home Savings Account (FHSA) is a new kind of registered savings plan that was specifically designed to help you save for the purchase of your first home, tax-free! It combines the best features of a Registered Retirement Savings Plan (RRSP) with the benefits of a Tax-Free Savings Account (TFSA) to help you reach your home-ownership goals faster.

With an FHSA, your contributions are tax-deductible, like an RRSP, and your eligible withdrawals are generally non-taxable, just like a TFSA. In addition, eligible withdrawals do not have to be paid back (like they do if you withdraw funds from your RRSP).


What can I use it for?

Use your FHSA to save up to $40,000 ($8,000 annually), to put toward the down-payment of your first home.

A couple, who is laughing and laying on the floor in their first home.

Why invest in an FHSA?

Money icon

Grow your savings

Since your investment earnings aren’t taxed, your savings will have the opportunity to grow faster in an FHSA than they would in other types of savings accounts.

Money icon

Get tax benefits

All contributions are tax-deductible, so investing in an FHSA can reduce your taxable income.

Investment icon

Flexible investments

Your FHSA can be held in a variety of qualified investments such as a mutual fund and more. We will work with you to find the right investment to match your needs.

How does it work?

Canadian residents who are at least 18 years of age, hold a valid social insurance number (SIN), and are first-time homebuyers are eligible to open an FHSA. Account holders can contribute up to $8,000 annually, to a lifetime maximum of $40,000.

Contribution room begins the year you open your FHSA. Any unused contribution amounts can be carried forward to the following year. All eligible contributions are tax-deductible (except on transfers from your RRSP to your FHSA).

Withdrawals for a qualifying first-home purchase can be made tax-free and do not need to be paid back. To be eligible for tax-free withdrawal from your FHSA, you must:

bullet icon

Be a Canadian resident and first-time homebuyer at the time of the withdrawal

bullet icon

Have a written agreement to buy or build a qualifying home with the acquisition or construction completion date before Oct. 1 of the year following the date of the withdrawal; and

bullet icon

Intend to occupy the qualifying home as your principal place of residence within one year of buying or building it

Funds may be withdrawn from your FHSA for purposes other than first-time home purchase, however these withdrawals would be considered taxable income.

Account holders must use FHSA contributions within 15 years of opening the account, or by the age of 71 (whichever occurs sooner).

FHSA by the numbers

$8,000

The maximum annual contribution limit

$40,000

The maximum lifetime contribution limit

15

The number of years you get to use your FHSA funds

Is this right for you?

Right for you if you:

  • You’re planning to purchase your first home. FHSAs were specifically designed to help first-time home buyers achieve their home-ownership goals.

  • You want to grow your savings faster. Since any earnings made on your investments aren’t taxed, you’ll see those balances grow more quickly – and who doesn’t want that?

  • You enjoy flexibility. With an FHSA, you can withdraw funds any time. You can also transfer funds from your FHSA to any RRSP or RRIF held in your name, tax-free!

Font Awesome Icons

May not be right for you if you:

  • You’ve previously owned a home. FHSAs are not available to anyone who has owned a home at any time in the four years prior to applying for the account.

  • You plan to purchase property outside of Canada. FHSA funds can only be used to purchase a home or housing unit located in Canada.

  • You want to move funds from a TFSA or RRIF. While you can transfer funds from an RRSP to your FHSA, you cannot transfer funds from your TFSA or RRIF into your FHSA.

Products for an FHSA

You've settled on an FHSA, and it aligns perfectly with your financial objectives. It's time to choose the right products to invest your funds in and watch them flourish. Your potential earnings are directly linked to your comfort level with risk.

Discover the array of options that Conexus has to offer – there's a wealth of opportunities waiting for you!

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, and other securities. Their key benefits include diversification and accessibility to a wide range of investment options, making it a convenient way for you to participate in the financial markets with reduced risk and expertise on your side from Conexus.


Learn more >

Exchange-Traded Funds are investment funds that are traded on stock exchanges, much like individual stocks. Similar to a mutual fund, ETFs offer diversification as a benefit but with the added flexibility to trade throughout the day at market prices.


Learn more >

At Conexus, we have a range of investment products designed to help you achieve your financial goals. Our diverse portfolio includes stocks, bonds, GICs, and more, each tailored to suit your risk tolerance and investment objectives.


Learn more >

Have questions? That’s what we’re here for!

 A female employee wearing a headset and green blouse smiles to camera.

Give us a call

Have questions about which investment option is most suitable for you?

A female employee wearing a floral shirt sits at a desk and smiles while meeting with a member.

Schedule an appointment

Want to learn more about investing? Book an appointment with one of our advisors.

Tools & Resources 

Calculator

Find out how much you can afford

Money Advice for Life

Owning a home brings more costs than just your mortgage payment.

Disclaimer

Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth Inc. The information contained on this webpage was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This information is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities.

Protect yourself from fraud: Be vigilant against phishing and spoofing attempts. Always ensure you are on our official website by checking the web address and security indicators. We will never ask for sensitive information via email or redirect you to unfamiliar sites. If in doubt, contact our Member Contact Centre immediately. Learn more about ways to protect yourself from fraud by visiting: https://www.conexus.ca/security/