First Home Savings Account (FHSA)

Dreaming of buying your first home?
Here's your first step...

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!

The key to unlocking your dreams of home ownership is the tax-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? You guessed it, tax-free!

What is a First Home Savings Account (FHSA)?

The FHSA is a registered savings account designed for prospective first-time homebuyers. Similar to an RRSP, it allows you to make tax-deductible contributions. But what sets it apart is its non-taxable withdrawals, similar to a TFSA, which you can use towards purchasing your first home. Plus, you don’t have to ‘pay back’ that withdrawal like you do when you use funds from your RRSP for a down payment.

Who is eligible for an FHSA?

To open a First Home Savings Account, you must be:
  • A Canadian resident
  • 18 years or older
  • A first-time home buyer
*You are considered a first-time home buyer if you or your spouse/common-law partner did not own the home that you lived in, in the year you open an FHSA or the preceding four calendar years. 

How does an FHSA work?

  • Tax Deductible Contributions - up to $8,000 annually, lifetime limit of $40,000. Your annual FHSA contributions can be claimed as an income tax deduction for contributions made in that year.
  • A maximum of $8,000 unused contribution room can carry forward to the following year
  • The account can stay open for a maximum 15 years or until the end of the year you turn 71
  • Tax Sheltered Savings - Investment income and growth within the account are not taxable
  • Tax-Free Withdrawals - Qualifying withdrawals for a first home purchase are tax-free

FHSA vs Home Buyers' Plan

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.
In an FHSA, you are not required to pay back the funds withdrawn toward the purchase of a qualifying home.

As a first-time homebuyer, you can use both FHSA withdrawals and HBP withdrawals toward a qualifying home purchase.

Both you and your partner can each have an FHSA to contribute to your downpayment - as long as you are both first-time home buyers. If you are also using the HBP, good news! You can use both HBP and your FHSA for the same home and so can your partner!
Want to learn more? Check out our FHSA Help & Advice section


So, why wait? We’re here to support you every step of the way on your journey towards home ownership. 

Take the first step towards your first home with an FHSA—talk to a Wealth Specialist today!

Sheri Baker

Mutual Funds Investment Specialist
Credential Asset Management Inc.
(306) 765-1323

Trina Holmes

Mutual Funds Investment Specialist
Credential Asset Management Inc.
(306) 862-0747


Karla Morris

RIS, Insurance Advisor/Investment Advisor
Credential Financial Strategies Inc. & Credential Securities
(306) 862-8160

Dawn Perrin

Mutual Funds Investment Specialist
Credential Asset Management Inc.
(306) 768-1408

Danielle Robert

Wealth Specialist
Diamond North Credit Union
(306) 724-8376

Karissa Soucy

Mutual Funds Investment Specialist
Credential Asset Management Inc.
(306) 768-1407
Book an Appointment
Get you First Home Savings Account set up today. Book a video call, phone call or in-office appointment to get started.

Want to learn more about the FHSA?

How much can I contribute?  What happens when I withdraw funds? Can my partner and I both have a FHSA? Get answers to these and more in our Help and Advice section.
This website uses cookies to improve your user experience. By continuing to browse the site you are agreeing to our use of cookies.