The FHSA Makes Saving for a Home Easier and Faster
Buying your first home is a big deal—and you may be able to do it sooner with the First Home Savings Account (FHSA), a new registered plan that offers tax-deductible contributions, tax-free growth and tax-free withdrawals1. Getting started is easy at RBC. Simply choose the level of support you want and open your FHSA online today!
Reasons to Open an FHSA Today
Enjoy tax benefits similar to other registered plans.
Pay no taxes on your investment earnings or withdrawals (if used for a qualifying home)1
Contribute up to $8,000 each year, up to a $40,000 lifetime limit.
Start earning contribution room the year you open your FHSA. Unused room carries forward to the next year, up to a maximum of $8,000.
Combine your FHSA savings with the Home Buyers’ Plan (HBP)
The HBP is a separate program that lets you borrow from your Registered Retirement Savings Plan (RRSP) to buy a home.
Two Ways to Open and Invest in an FHSA Online
Let us pick, buy and manage your investments
RBC InvestEase
Research, pick and buy your own investments
RBC Direct Investing
Benefits of Opening an FHSA at RBC
Open Your FHSA Online
Easily open your FHSA online and start investing towards your first home sooner.
Choose How You Want to Invest
Let the pros invest for you at RBC InvestEase or call the shots on your investments at RBC Direct Investing.
Move Money Easily to Your Account
Instantly move money from your RBC bank account to your RBC InvestEase or RBC Direct Investing account.8
FHSA FAQs
To open a First Home Savings Account (FHSA), 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)
You can hold the following product offerings in a First Home Savings Account (FHSA):
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Savings deposits
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Stocks, options and bonds
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Exchange-Traded Funds (ETFs)
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Cash
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GICs9
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Mutual Funds
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 within the year, you can contribute the unused amount in the subsequent 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).
No, you can 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) 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.
Still have questions? Contact an Advisor today
1-800-769-2563 (1-800-ROYAL-63) Book an Appointment
RBC Direct Investing Inc., RBC InvestEase Inc., and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc.
RBC InvestEase Inc. is a restricted portfolio manager providing access to model portfolios consisting of RBC iShares ETFs. Each model portfolio holds up to 100% of RBC iShares ETFs. RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. (RBC GAM) and iShares ETFs managed by BlackRock Canada Limited (BlackRock Canada). RBC GAM and BlackRock Canada entered into a strategic alliance to bring together their respective ETF products under the RBC iShares brand, and to offer a unified distribution support and service model for RBC iShares ETFs.
Other products and services may be offered by one or more separate corporate entities that are affiliated to RBC InvestEase Inc., including without limitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC Dominion Securities Inc., RBC Global Asset Management Inc., Royal Trust Corporation of Canada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase.
The services provided by RBC Direct Investing and RBC InvestEase are only available in Canada.
Pay no taxes on withdrawals if used to buy a qualifying home. Taxes are applicable on non-qualifying withdrawals. If you hold foreign investments in your FHSA, a foreign government may withhold tax on the foreign sourced income received by the FHSA.
Contributions to your FHSA could potentially reduce your annual tax bill. Speak to a tax professional regarding your personal circumstances.
All portfolios have been developed by RBC InvestEase Inc. (“RBC InvestEase”). The portfolios include RBC iShares ETFs, with each model portfolio holding up to 100% of RBC iShares ETFs. RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. (RBC GAM) and iShares ETFs managed by BlackRock Canada Limited (BlackRock Canada). RBC GAM and BlackRock Canada have entered into a strategic alliance to bring together their respective ETF products under the RBC iShares ETF brand, and to offer a unified distribution support and service model for RBC iShares ETFs. As such, the RBC iShares ETFs are related or connected issuers of RBC InvestEase.
Your money will not be invested until your account balance reaches $100 or more. Small balances (less than $1,500) may be allocated to a Small Balance portfolio that invests in a limited selection of RBC iShares ETFs and/or cash. Our Small Balance portfolios follow similar risk profiles to our Standard Portfolios while investing in fewer RBC iShares ETFs.
Easily access or contribute to your account online with RBC Online Banking or the RBC Mobile app.
Mutual funds, high interest savings account products and certain GICs cannot currently be purchased, sold or transferred into your FHSA.
RBC Mobile is operated by Royal Bank of Canada, RBC Direct Investing Inc. and RBC Dominion Securities Inc.
Deposits you make from your RBC Royal Bank account to your RBC InvestEase account between 4:30 a.m. and 7:54 p.m. Eastern Standard Time (EST) will be processed in real time. Deposits made during all other times will be processed the next business day. Fund transfers from an RBC Royal Bank account to your RBC Direct Investing account using RBC Online Banking, Direct Investing Online Investing, or the RBC Mobile app are processed in real time between the hours of 4:30 a.m. and 7:54 p.m. EST, seven days a week. Transfers into an RBC Direct Investing account made outside of these hours will be processed the next morning. Transfers out of your RBC Direct Investing account to an RBC Royal Bank account are processed in real-time between 9:00 a.m. and 4:00 p.m. EST, Monday to Friday (excluding holidays). Transfers out of your RBC Direct Investing account made outside of these hours will be processed the next business day. Locked-in, Registered Retirement Income Fund, and Registered Education Savings Plan (transfer out only) accounts excluded. Other conditions apply.
Certain GICs cannot currently be purchased, sold or transferred into your FHSA.