First Home Savings Account FAQs

1. Must be at least the age of majority
2. Be a resident of Canada
3. Not have lived in a home that they owned at any time during the year you open the FHSA or during four preceding calendar years

• You must be a first-time homebuyer and a resident of Canada at the time of the withdrawal for the acquisition of your qualifying home.
• 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.
• You must have a written agreement to buy or build a qualifying home located in Canada before October 1 of the year following the year of withdrawal.
• You must also intend to occupy the qualifying home as your principal place of residence within one year of buying or building it.

You can keep your FHSA open for 15 years

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.

You are considered a first-time home buyer if you did not live in a “qualifying home” owned by you, or your spouse or common-law partner, at any time in the calendar year before your FHSA account is opened or the previous four years.

A "qualifying home" is defined as a housing unit located in Canada. This includes shares to own a unit of co-op housing.

No. Since FHSA contributions are capped at $8,000 per year, with a lifetime cap of $40,000, you’ll likely need to rely on more than just a FHSA for your down payment anyway. Many people will also save for a home with a TFSA and/or RRSP.

There are many ways to build your down payment for your first home, and everyone’s setup is unique. You might consider consolidating debt under a single loan, invest with an RRSP, in term deposits or a high interest savings account —or a combination of those things.

The best way to start is by booking an appointment with us. Our specialists can work with you to build your down payment in a way that makes sense for your unique financial needs and goals.

The Canadian Home Buyers’ Plan allows you to withdraw up to $35,000 from your RRSPs to buy or build a qualifying home and pay back the funds to your RRSP over 15 years.

If you’re already participating in the Home Buyers’ Plan (HBP), you’ll have the option to combine your HBP and FHSA to buy the same property. But unlike the HBP, the funds you withdraw from your FHSA do not need to be paid back.

As a holder and owner of an FHSA, you can have as many FHSA accounts as you wish as long as you don’t exceed the annual and lifetime limits as provided by the Canada Revenue Agency (CRA).