First Home Savings Account

Introducing the First Home Savings Account (FHSA)
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Dreaming of buying your first home? Here’s your first step …


Did you know there's a cool new way to help you save for your first home? It can be tough to juggle rent and other expenses while trying to put money aside for a down payment. But don't worry, we’ve got your back with a new government program that came into effect on April 1, 2023.
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It's called the fax-free First Home Savings Account (FHSA), and here's why it's awesome:
  • You get tax deductions on the money you put in.
  • Any growth your account sees? Also tax-free!
  • And when you're ready to withdraw for your first home purchase? Yep, you guessed it, tax-free!
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How it works

As the FHSA is a registered savings plan, there are a few rules you should know. You need to be living in Canada and be at least 18 years old (or the age of majority in your province). You also can't own a house already, or have owned one in the last four years. And once you use the account for your first home, that's it - no more tax-free withdrawals for future homes.
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You can put in up to $40,000 over your lifetime, but there's a yearly limit of $8,000. If you don't use up all your room in one year, don't worry, you can carry it over to the next year.
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Another great thing is that you can transfer funds from your RRSP to your FHSA without paying any taxes. But keep in mind, this won't give you any extra RRSP contribution room.

Tax-free treatment

When it comes to claiming your tax deductions, there's a bit of a difference compared to RRSPs. Your FHSA contributions are only deductible in the same calendar year they're made. And once you've bought your first home with the account, there are no more deductions for any more contributions.
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Just like with your RRSP and TFSA, any money you make from investments in your FHSA won't be taxed. But with the FHSA, when you're ready to buy your first home, you can withdraw the money tax-free!
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You'll have to close all your FHSAs by the end of the next year, and any money left in your account will be treated as income for that year, and you'll need to pay taxes on it. But you can defer this by transferring it into an RRSP.

Double down on your downpayment

You and your partner can each have an FHSA to contribute to your downpayment – as long as you’re both first-time home buyers. Oh, and if you're also using the RRSP home buyers' plan (HBP), good news! You can use both HBP and your FHSA for the same home (and so can your partner).

Currently, the Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw up to $35,000 tax-free from their RRSP to purchase or build a new home, however, you must pay that money back to your RRSP within 15 years. You are not required to pay back the funds withdrawn from an FHSA that is used towards the purchase of a qualifying home.

Learn More

It's a bit complex, so it's a good idea to chat with your advisor about how to use the FHSA as your first step for your first home! Talk to us today.



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Frequently Asked Questions

You can open an FHSA, if you are a Canadian resident between the ages of 18 and 71, and you qualify as a first-time home buyer.
Starting the year you open an FHSA, you can contribute up to $8,000 per year, up to a lifetime limit of $40,000. These contributions are tax-deductible from your income for the year of the contribution.
Yes, you can carry forward your unused contribution room to the following year, to a maximum of $8,000. That means the most you can contribute in any one year is $16,000 ($8,000 annual limit + $8,000 carryforward).
Yes! You can transfer money in from an RRSP (but not a TFSA or RRIF) if you have the FHSA contribution room. You can transfer money out from an FHSA to an RRSP or a RRIF (but not a TFSA), regardless of your RRSP contribution room. Note that transfers are not tax-deductible, and they don’t affect RRSP contribution room.
Withdrawals for a qualifying first-home purchase can be made tax-free. If you don’t end up buying a home, you can withdraw the money for other purposes, but it would be considered taxable income.
There is a maximum timeframe for an FHSA, and it must be closed 15 years after opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal—whichever comes first.

Dawn Perrin

Mutual Funds Investment Specialist
Credential Asset Management Inc.
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Serving Carrot River, Arborfield & areas


(306) 768-1408

Karissa Little

Mutual Funds Investment Specialist
Credential Asset Management Inc.
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Serving Carrot River, Nipawin & areas


(306) 768-1407

Sheri Baker

Mutual Funds Investment Specialist
Credential Asset Management Inc.

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Serving Prince Albert & area

(306) 765-1323

Trina Holmes

Mutual Funds Investment Specialist
Credential Asset Management Inc.

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.Serving Nipawin, White Fox, Choiceland & area

(306) 862-0747
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Danielle Robert

Wealth Specialist
Diamond North Credit Union

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Serving Debden & Big River
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(306) 724-8376

Karla Morris

RIS, Insurance Advisor/Investment Advisor
Credential Financial Strategies Inc. & Credential Securities
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Serving all DNCU locations

(306) 862-8160

Saving for your first home starts now! 



Our Wealth Specialists are here to answer all your questions to help turn your first-home dream into reality. 


Get you First Home Savings Account set up today. Book a video call, phone call or in-office appointment to get started.
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