Get closer to home ownership with tax-free savings
The First Home Savings Account (FHSA) is a new type of registered plan that’s designed to help you save for your first home, tax-free.
Key benefits:
- Contributions to a FHSA reduce taxable income
- Possibility to participate in the HBP and FHSA to purchase a qualifying home
- No limit for qualifying withdrawals
Key features:
- Contribute to a maximum of $8,000 per year
- Contributions are tax-free up to $40,000
- Income earned is also tax-free
- A tax-free transfer of funds from RRSP to a FHSA is permitted, subject to limits
Who Qualifies for FHSA?
The key to realizing your dream
To open a FHSA, you must be:
- At least 18 years of age and no less than the age of majority in the province where you live
- A Canadian resident
- A first-time homebuyer
FHSA vs RRSP
First Home Savings Account vs Retirement Savings Plan
A TFSA is a savings option that allows you to access funds, without penalty, when you need them. While an RRSP is more of a long-term savings option for retirement, where early withdrawals are taxed.
First Home Savings Account:
- Savings grow tax-free
- Tax-free investment earnings and withdrawals when used to buy your first home
- Contributions reduce taxable income.
Retirement Savings Plan:
- Investment income earned can grow tax-deferred
- Tax breaks for annual contributions
- No tax on earnings
- Contribute to a spousal RRSP
Smart investing
Pay less income tax and more
Invest your hard-earned money, grow it tax-free, and withdraw it when you find your first home. Enjoy tax-free qualified withdrawals. Unlike an RRSP, qualified withdrawals from your FHSA to buy a home won’t be taxable.
Contributions can be used as deductions against your earned income, lowering the tax you pay when you file your return. And like a TFSA, your investment earnings won’t be taxed either.
You can keep your FHSA open for 15 years, but if you don’t end up buying a home, you can transfer your FHSA savings to an RRSP or RRIF without paying taxes on the transfer.
Start saving smarter with these options
Mutual Funds
Invest collectively in securities, and benefit from the income they generate.
Responsible Investing Portfolio
Invest in companies with a proven, positive environmental record.
Saving & retirement tips
Long-term goals need long-term plans
From school to retirement and all the life steps in between, here are some tips and tricks to get you started on your saving and investing strategy.
Saving & investing
First Timer’s Guide to Saving & Investing
With saving, you’ve got to start somewhere–and every penny counts. Untangle all the acronyms and find the perfect plan to help you reach your goals.
Retirement
First Timer’s Guide to Retirement
There’s no better time to start saving than now. You work hard and deserve to enjoy retirement comfortably. Find out how to make it happen.
Financial
How to build a financial plan
Building a roadmap to meet your financial goals? This article breaks it down. When you're ready, you can connect with our financial experts and start .
I am here to help you through all of life’s stages—from starting a family to retirement and every financial milestone in between.
Investment advice
Experts like Erin Noble are ready to help members
A Financial Services Officer like Erin can help you make sense of investing, find the right stream for you, and get your portfolio off the ground.
- Get started with TFSAs
- Know your investment options
- Tailor your investment strategy to your goal
- Develop personalized strategies with ongoing advice
