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First Home Savings Account (FHSA)
Save on taxes while setting money aside for your first home
On this page
What is an FHSA | Why contribute | At a glance | FHSA vs HBP | How to contribute | FAQ | Investment products | Other plans | Eligibility criteria
What is an FHSA?
The First Home Savings Account (FHSA) is a tax-free savings account meant for home purchases. It's a registered plan that allows first-time homebuyers to contribute up to $8,000 per year, with a lifetime limit of $40,000.
Why contribute to an FHSA?
The FHSA is a registered account that will provide tax-free savings for the purchase of your first home.
Save on taxes
Your contributions made to an FHSA are tax deductible, which reduces your taxable income for the current year.
Use what you’ve accumulated for retirement if you’d like
If you decide to use this amount for something other than a home, you can transfer the money to an RRSP or RRIF without affecting your contribution limit.
FHSA at a glance
Up to $8,000 per year with a lifetime limit of $40,000
FHSA contributions can be up to $8,000 a year with a lifetime limit of $40,000.
A 15 year lifespan
The FHSA has a lifespan of 15 years. After that time, the funds must be transferred to an RRSP or RRIF.
Tax-free returns
The returns generated from your FHSA contributions are tax-free.
FHSA vs HBP
What is the difference between a FHSA and a HBP? Which one should you choose? It depends on your savings goals, as well as your financial and tax situation.
FHSA
The First Home Savings Account provides tax-free savings for first-time home buyers.
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No repayment required
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No withdrawal limit
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Maximum annual contributions of $8,000 and a lifetime total of $40,000
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No minimum holding period required for contributions to be deductible and eligible for withdrawal
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The deadline for contributions to a FHSA is December 31 of each year
HBP
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP to buy or build a first home.
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Repayment required
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Withdrawal limit of $60,000
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Maximum annual contributions of the RRSP, which is 18% of your previous year’s income or the current fixed contribution limit
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The money must be deposited into your RRSP 90 days before you withdraw it under the HBP
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Deadline for RRSP contributions: 60 days after the end of the year
Good to know
You can combine the FHSA and the HBP.
How to open and contribute to an FHSA?
Open an FHSA from your online bank
Complete our secure online form to contribute to your FHSA.
Open an FHSA via our direct brokerage platform
Are you a self-directed investor? Complete our secure online form and contribute to your FHSA via your brokerage account.
Not a client yet?
Our team is here to help you open your FHSA.
How much can I borrow? Let’s run the numbers! Estimate how much you can borrow for the purchase of your first home.
Want to learn more about the FHSA?
Find the answers in our help centre.
I’ve just immigrated to Canada? Can I open an FHSA?
What’s the FHSA? And is it the right account for me?
Can I transfer money from my RRSP or TFSA to my FHSA?
Can
I open a FHSA account with my spouse?
Can I open a FHSA if my spouse already owns property?
Can I contribute to my spouse's or child's FHSA?
Our investment products for your FHSA
Grow your FHSA with investment solutions that match your goals.
Cash Advantage Solution
Protect your savings while benefiting from an interest rate that increases across different tiers.
Guaranteed Investment Certificate (GIC)
Opt for a GIC as a secure investment that offers a pre-determined return from day one.
Portfolio solutions
Invest in a diversified and comprehensive range of investment funds with our NBI Portfolios and NBI Sustainable Portfolios.
Other tax-sheltered plans
RRSP
Save and reduce your annual taxable income. You could also save on taxes in the year you contribute.
RESP
Save for your children’s education and receive up to $12,800 in government grants.
We’re here for you
Let’s chat FHSA
We’ll find the best investment solution for you today.
Find a branch
Find a National Bank branch closest to home.
Got a question about the FHSA?
Visit our help centre to get the answers you're looking for.
Little details that matter
To open an FHSA, you must be:
- A Canadian resident
- You must be between the ages of 18* and 71 to contribute.
- A "first time homebuyer" i.e., you and your current spouse or common-law partner must not have owned a home that you lived in as your principal place of residence, at any point during the portion of the calendar year before the account was opened and in the 4 preceding calendar years.
- You must not have already used the FHSA for the purchase of a property
*According to the age of majority in the province of residence
- 18 years old (Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Prince Edward Island)
- 19 years old (British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Yukon, Nunavut, Northwest Territories)
To learn about FHSA fees, please consult the Fee Guide – Personal Banking Solutions under Other Fees.
To learn about our process for notifying you of fee increases or new fees, please refer to the Interest and Fees section of our Personal Bank Holding Agreement.
If you are dissatisfied with our service, please consult our Complaint settlement page.
Learn more about the FHSA on page 3 of the Account application form.
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