First Home Saving Account (FHSA)

A First Home Savings Account (FHSA) is a designated plan that enables individuals, particularly those purchasing their first home, to accumulate funds for the tax-free acquisition or construction of an eligible initial home, within specified limits.

To initiate an FHSA, you need to qualify by satisfying all the conditions outlined here at the time of opening your account. You are either 18 years old or above. You are either 71 years old or younger as of December 31 in the year when you establish your FHSA. You are Canadian resident. You fulfill both of the following conditions for being a first-time home buyer:

  1. You did not reside in a qualifying home (or a property that would qualify if located in Canada) as your primary residence, which you owned or co-owned, during the current calendar year or the preceding 4 calendar years at the time of opening the FHSA.
  2. You resided neither in a qualifying home (or a property that would qualify if located in Canada), which your spouse or common-law partner owned or co-owned, as your primary place of residence during the current calendar year or the preceding 4 calendar years OR You are not married or in a common-law partnership when you initiate the account.

Opening an FHSA

You have the option to open one or multiple FHSA(s) with an FHSA issuer, which may include a bank, credit union, or a trust or insurance company. We will provide guidance on the available types of FHSAs and the eligible investments we offer.

Types of FHSAs

A Depositary FHSA

It is an account (with a financial institution) that holds money, term deposits, or guaranteed investment certificates (GICs).

A Trusteed FHSA

It is a trust (with a trust company as trustee) that holds qualified investments such as money, term deposits, GICs, government and corporate bonds, mutual funds, and securities listed on a designated stock exchange.

An insured FHSA

It is an annuity contract (with a licensed annuity provider).

Self-Directed FHSA

If you wish to construct and oversee your investment portfolio by engaging in the purchase and sale of various types of qualified investments, you have the option to establish a self-directed FHSA.