FHSA

Start saving towards a down payment with the tax-free First Home Savings Account

Photo of a couple dancing in their new home surrounded by boxes.

How does an FHSA work?

The First Home Savings Account (FHSA) is a tax-free savings account meant for home purchases. It's a new registered plan that allows first-time homebuyers to contribute up to $8,000 per year, with a lifetime limit of $40,000.

Why is the FHSA the right account for me?

Picto of a home with a circled checkmark in front of it

Because it can help you buy your first home

The FHSA is a new registered account that will provide you tax-free savings for the purchase of a first home.

Picto of a hand holding a bag of money with a dollar sign drawn on it

Because you’ll pay less taxes

Your contributions made to an FHSA are tax deductible, which reduces your taxable income for the current year.

Picto of a piggy bank with a coin being dropped inside

Because your FHSA contributions aren’t limited to a down payment

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 room.

The FHSA explained in less than 1 minute

50 seconds Read the transcript

The brand-new First Home Savings Account (FHSA) is now available at National Bank. Discover its various benefits.

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)

How do I open my FHSA?

Already a client with access to your online bank? Sign in and start investing today.

Open a FHSA in your online bank

Complete our secure online form to contribute to your FHSA.

Learn more

Open a FHSA via our direct brokerage platform

Self-directed investor? Complete our secure online form and contribute to your FHSA via your brokerage account.

Open an account

Learn more

Want to talk with us?

Speak with an advisor to find a tailored solution for you.

Make an appointment

The FHSA in numbers

Picto of three stacks of coins with a circled dollar sign next to it

Up to $8,000/year and lifetime limit of $40,000

FHSA contributions can be up to $8,000 a year with a lifetime limit of $40,000.

Picto of a circle with the number 15 inside of it

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 income

Income and gains generated with your FHSA contributions are tax-free.

Picto of a lightbulb with a dollar sign inside of it

How much can I borrow?

Calculate how much you can afford to spend on your first house mortgage.

Calculate your mortgage

FHSA vs HBP: What are the main differences?

What is the difference between a FHSA and a HBP? And which one should you choose? It depends on your savings goals, as well as your financial and tax situation.

FHSA

The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers.

No repayment required
No withdrawal limit
Maximum annual contributions of $8,000 and a lifetime total of $40,000
No minimum holding period required for contributions to be deductible and eligible for withdrawal
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.

Repayment required
Withdrawal limit of $35,000
Maximum annual contributions of the RRSP, which is 18% of your previous year’s income or the current fixed contribution limit
The money must be deposited into your RRSP 90 days before you withdraw it under the HBP
Deadline for RRSP contributions: 60 days after the end of the year