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Your first home is a major step. Saving for it shouldn’t trip you up.

Tax-free savings for your first home.

What is an FHSA?

The First Home Savings Account (FHSA) is the latest government registered plan, introduced in 2023. It helps you save up to $40,000 for your first down payment on a home – tax free.

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How does an FHSA work?

If you’re at least 19, have a social insurance number (SIN) and haven’t owned a home in the last four years, you can contribute up to $8,000 each year and use it to purchase a home and lower your taxes.

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Available now

Maximize your FHSA tax-free savings before the December 31 contribution deadline. Our advisors can help you start saving up for your first home. We’ll help you figure out the investment plan that best suits your financial goals.

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Why invest in an FHSA?

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Reduce your tax

Your FHSA contributions are tax deductible. This means that the more you put into the account the more you save on your tax bill each year.

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Grow your investments

Any savings interest you earn inside an FHSA is tax free and stays that way even when withdrawn (as long as it meets requirements).

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Accelerate home savings

You can combine your FHSA savings with the Home Buyers’ Plan (HBP) to add up to $35,000 more to your first home’s down payment.

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Build contribution room

Once your FHSA is open, you never lose contribution room. Unused amounts just add more savings room the following year (providing you don’t go over the $40,000 lifetime limit).

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Invest your way

You can customize your FHSA with many kinds of investments. Mutual funds*, term deposits, stocks, bonds and more can all be used to grow your savings in an FHSA.

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Is an FHSA right for me?

Setting up a First Home Savings Account is a great way to save faster for a down payment. It’s particularly helpful in certain situations:

  • Longer-term goal – If you’re not looking to buy for a while. You can grow your savings in an FHSA tax-free for up to 15 years.

  • Higher taxable income – If you’re in a higher tax bracket and want to reduce the amount you owe.

  • Non-essential savings – If you aren’t going to need access to the funds before buying a home.

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How does an FHSA work in real life?

Let’s take a look at Jasmine’s experience. She lives in Vancouver earning $50,000 a year and wants to save for her first home. She hears about the FHSA and how it can help her save up to $40,000 with all growth tax-free. Over the next five years, Jasmine contributes $8,000 to her FHSA each year. She’s happy to see her money grow by over $6,000 tax-free. But she’s even more excited to learn about the tax savings she’s received – $11,165, based off her annual income!


Total income tax savings based on $50,000 income


Total tax-free interest earned in 5 years, based on maximum contributions and 5% growth


Total value of your savings in 5 years

After five years of contributing to her FHSA for her first home, Jasmine has saved a total of $57,580 – that’s $17,580 more than she contributed! She’s now financially ready to take her next step and become a homeowner.


Boost your investing know-how

Try our investment calculators

Our handy calculators help you figure out which solutions make the most sense for your home savings.


Your First Home Savings Account questions answered

That’s a great question. Each registered plan has its own features and benefits. Let’s break it down:

Can be used to save for your first home

Can be used to save for any goal

Can be used to save for retirement, education or your first home

You don’t need taxable income to accumulate contribution room1

You don’t need taxable income to accumulate contribution room

You do need taxable income to accumulate contribution room

Contributions are tax deductible

Contributions aren’t tax deductible

Contributions are tax deductible
Withdrawals are tax free if they’re made to buy a qualifying home

Withdrawals are tax free any time for any purpose

Withdrawals are taxed in the year they’re made2

You can contribute for up to 15 years

You can contribute at any age

You can contribute up until the end of year you turn 71

1 Except if the withdrawal is made as part of the Home Buyer’s Plan (HBP) and Lifelong Learning Plan (LLP) which are not taxed provided they are repaid within the required time.
2 However, you don’t start accumulating contribution room until you open an FHSA account.

You'll be able to set up a First Home Savings Account (FHSA) at Gulf & Fraser in November 2023. Sign up to be notified when it's available.

Setting up an FHSA will be as easy as our other Registered plans. You can do it:

You can contribute $8,000 a year to your First Home Savings Account for up to 15 years. The maximum total FHSA contribution limit is $40,000.

You can also carry forward unused contribution room. That means, if you open an FHSA and don’t contribute the full annual limit, it automatically increases how much you can add the following year.


You open an FHSA, but only contribute $2,000 in the first year. That means the following year your contribution limit will be $14,000 ($6,000 from the first year plus $8,000 for the current year).

Yes, you can use your FHSA contributions to reduce your taxable income each year.

FHSA withdrawals aren’t taxed as long as they meet certain requirements. You must:

  • Have a written agreement to buy or build a qualifying home1 by October 1 of the year after you make the withdrawal.

  • Be a Canadian resident from the time of the withdrawal to the point of buying the home.

  • Plan to live in the home within a year of buying or building it.

If your withdrawal doesn’t meet these requirements, you’ll need to pay withholding tax and the amount you withdraw will be added to your taxable income for that year.

1 A "qualifying home" is defined as a housing unit located in Canada. It also includes a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit located in Canada.

Yes, you can transfer money from your Registered Retirement Savings Plan (RRSP) to your FHSA tax-free. Just make sure you don’t go over your annual limit ($8,000 plus any previous unused contribution room) or lifetime limit ($40,000).

It’s also important to note that:
  1. These transfers are not tax deductible.

  2. You won’t be able to re-contribute the transfer amount to your RRSP. That contribution room will be lost.

Yes, you can use both. Having an FHSA won’t affect your eligibility for the Home Buyer’s Plan (HBP). That means you can withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) and $40,000 (plus any interest earned) from your FHSA tax-free to buy your first home.

Just bear in mind that you’ll need to re-contribute your HBP withdrawal to your RRSP within 15 years. The FHSA doesn’t have any repayment requirements.


Have more questions?

Don’t hesitate to reach out. We’re just a live chat, video, or phone call away when you need us.

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Other solutions you might want

Tax Free Savings Account (TFSA)

The TFSA helps you save for any goal completely tax free – be it a home, a car, or a dream vacation.

Registered Retirement Savings Plan (RRSP)

The RRSP helps you reduce your tax bill today, while accelerating your savings for your dream retirement.