What is an FHSA?

Work towards your goal of buying your first home with a First Home Savings Account (FHSA). Available at RBC in April 2023, FHSA is a new registered plan that can help you save for your first home tax-free. If you’re at least 18 (and no less than the age of majority in your province), have a Social Insurance Number (SIN) and have not owned a home where you lived this year or at any time in the preceding four calendar years, you may be eligible to open an FHSA.Legal Disclaimer 1

Reasons to Invest in an FHSA:

  • Use it to save up to $40,000 for your first home
  • Contribute tax-free for up to 15 years
  • Carry forward any unused contribution room from the prior years for as long as you have the account
  • Potentially reduce your tax bill and carry forward undeducted contributions indefinitely
  • Pay no taxes on any investment earnings
  • Complements the Home Buyers’ Plan (HBP)

How an FHSA Will Work

Here’s how an FHSA can help you save for your first home:

An FHSA is a type of registered plan, which means you can hold investments in it to help you reach your goal of owning a home faster.

At RBC, there’s no minimum balance required to open an account and you’ll be able to hold a full range of investment products.

Tip: Whether you want to make your own investment decisions or have professionals manage your investments for you, it’ll be easy to invest in an RBC FHSA.

Since your investment earnings aren’t taxed, your money will have the opportunity to grow faster in an FHSA than it would in a traditional savings account.

You can make tax-deductible contributions of up to $8,000 annually, up to a lifetime contribution limit of $40,000. If you don’t contribute the full $8,000 in a single year, the balance can be carried over for as long as you have the account and added to a future year’s contribution amount. Up to $8,000 of unused contribution room can be used annually.

Tip: Setting up regular (weekly, monthly, etc.) automatic contributions into your FHSA is an easy way to help you stay on track towards your savings goals.

Make a tax-free withdrawal at any time to purchase a qualifying home.

Tip: You’ll be able to use both an FHSA and the Home Buyers’ Plan (HBP) to purchase a qualifying home. Keep in mind that you’ll have to repay any funds through the HBP, but not with an FHSA.

Check out Save to Buy a Home for more tips on saving.

Numbers to Know

$8,000

Annual tax-deductible FHSA
contribution limit

$40,000

Lifetime FHSA
contribution limit

$0

How much you’ll pay in taxes
on FHSA earnings
(if you make a qualifying withdrawal to use for your first home)

Benefits When You Invest With RBC

Free digital tools to help you plan and save

See a clear view of your money, get tips and save automatically with smart tools such as MyAdvisor and NOMI Find & Save.

Advice when you need it

Speak with an advisor in-person, by phone or over video—whether you're investing $50 or $5,000.

Freedom to invest how you want

Work with an advisor, do-it-yourself, let advisors invest for you or try all three.

Compare the FHSA to Other Registered Plans

See how an FHSA compares to a TFSA or RRSP.

Compare Plans TFSA vs RRSP vs FHSA

FHSA FAQs

To open a First Home Savings Account (FHSA) once it’s available, you must be:

  • At least 18 years of age and no less than the age of majority in the province where you live
  • A Canadian resident
  • A first-time homebuyer (meaning, you and/or your spouse or common-law partner have not owned a home where you lived in the calendar year in which you open the account or at any time in the preceding four calendar years)

Once the First Home Savings Account (FHSA) is available, initial product offerings will include:

  • Savings deposits
  • Stocks, options and bonds
  • Exchange-Traded Funds (ETFs)
  • Cash

More products will become available over time.

No, you will be able to use both your First Home Savings Account (FHSA) as well as make a withdrawal from your Registered Retirement Savings Plan (RRSP) under the Home Buyers’ Plan (HBP) (opens in a new window) to purchase a qualifying home. Keep in mind that with a HBP withdrawal, you’ll have to repay any funds you withdraw from your RRSP. There is no repayment requirement for withdrawals from an FHSA.

Yes, you will be able to carry forward any unused FHSA contribution room from the prior years up to a maximum of $8,000 (subject to your lifetime contribution limit of $40,000). This means that if you contribute less than $8,000 in a given year, you can contribute the unused amount in a subsequent year in addition to the $8,000 annual contribution limit for as long as you have the account.

For example, if you contribute $5,000 to your FHSA in 2023, you would be allowed to contribute $11,000 in 2024 (i.e., $8,000 plus the remaining $3,000 from 2023).

See All FAQs

The FHSA is Coming Soon

Get notified when it’s available at RBC.