Investment FAQs

There are 2 ways you can open an account:

1) Through RBC Direct Investing:

• Call your own shots with our low-cost online trading and investing service
• Hold stocks, bonds, exchange-traded funds (ETFs) and more in your FHSA¹
• Make informed investment decisions using expert research and other resources like free real-time streaming quotes²

Open An Account

2) Through RBC InvestEase

• Our pros will pick, buy and manage the investments in your FHSA for you
• We match you to a low-cost, expertly constructed portfolio of exchange-traded funds (ETFs) based on your answers to a few simple questions
• Track your progress online anytime and speak to a Portfolio Advisor if you have questions or need advice

Open An Account

Have Questions? Call 1-800-769-2563 (1-800-ROYAL-63).

No, the First Home Savings Account (FHSA) is an individual account and cannot be held jointly. However, you and your spouse could each have an FHSA and can combine your savings to buy a qualifying home.

Plus, the attribution rules do not apply to amounts that you receive from your spouse or common-law partner that you contribute to your FHSA—and vice versa. This means that any investment earnings in your FHSA will not be added to your or your spouse’s taxable income regardless of whether you or your spouse fund the contribution, as long as they are used to purchase a qualifying home.

You can hold multiple First Home Savings Accounts (FHSAs), but your total contribution room will remain the same as if you had only one FHSA. Plus, your maximum participation period of 15 years will be based on the date you open your first account.

The lifetime contribution limit for the First Home Savings Account (FHSA) is $40,000.

The annual contribution limit for the First Home Savings Account (FHSA) is $8,000. You may also be able to contribute up to $8,000 of unused contribution room from the previous year. That means you could contribute up to $16,000 in a given year, if you have contribution room left from the year prior.

Note: You do not start accumulating contribution room until you open an FHSA account.

Yes, you can carry forward any unused FHSA contribution room from the prior year 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 next year in addition to the $8,000 annual contribution limit.

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).

You can only make contributions to your own First Home Savings Account (FHSA). Your spouse or partner can also have their own FHSA and make contributions to their account.

The attribution rules do not apply to amounts that you receive from your spouse or common-law partner that you contribute to your FHSA—and vice versa. This means that any investment earnings in your FHSA will not be added to your or your spouse’s taxable income regardless of whether you or your spouse fund the contribution, as long as they are used to purchase a qualifying home.

If you over contribute to your First Home Savings Account (FHSA), you’ll pay a 1% tax on the overcontributed amount each month until the excess amount is withdrawn, or until more contribution room becomes available.

For example, if you contribute $12,000 to your FHSA in December (and you had no unused FHSA contribution room carried forward), you’ll pay $40 (1% x $4,000 x 1 month). More contribution room would become available January 1, so at that time, the additional $4,000 would no longer be considered an overcontribution.

It depends. If you make a qualifying tax-free withdrawal, no taxes will be deducted from the amount, and you will not have to include the amount in your taxable income that year.

To make a qualifying withdrawal from your First Home Savings Account (FHSA) you must meet the following conditions:

• Be a first-time homebuyer
• Have a written agreement to buy or build a qualifying home in Canada by October 1 of the year after you make the withdrawal from your FHSA
• Intend to live in the home within a year of buying or building it
• Be a resident of Canada throughout the period from the withdrawal to the acquisition of the house

You can also transfer funds from your FHSA to another FHSA, Registered Retirement Savings Plan (RRSP), or Registered Retirement Income Fund (RRIF) on a tax-free basis.

If you make a withdrawal from your FHSA for any other purpose, your withdrawal will be subject to withholding tax and the amount you withdraw will be added to your taxable income. Plus, your FHSA contribution room will not be re-instated.

Once you make a qualifying withdrawal, you will need to close your account and transfer or withdraw all funds left in your FHSA by December 31 of the following year. If you make a non-qualifying withdrawal, you will not have to close your account (unless you have had it for 15 years or are turning 71)—but your contribution room will not be reinstated.

The funds in your First Home Savings Account (FHSA) have to be used by December 31 of the 15^th year after opening your first FHSA account or the year you turn 71, whichever comes first. If you have not used the funds in your FHSA by that time, they can be transferred tax-free to your Registered Retirement Savings Plan (RRSP) without impacting your RRSP contribution room, or to your Registered Retirement Income Fund (RRIF); otherwise, your withdrawal will be taxed.

If you withdraw only a portion of the funds from your First Home Savings Account (FHSA) to purchase your first home, you can transfer any remaining funds to your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) on a tax-free basis on or before December 31 of the year following the initial withdrawal. Otherwise, you can withdraw the remaining balance, but it will be taxed.