First Home Savings Account (FHSA)

Introduced by the Government of Canada in 2023, the First Home Savings Account (FHSA)* is designed to assist members who are saving for your first home.

To qualify, account holders must be at least 19 years old, be a resident of Canada, and be a first-time home buyer in accordance with the Canada Revenue Agency’s guidelines.

Features

• Save as much as $40,000 in the account
• Contribute up to $8,000 per year (Tax deductible)
• No minimum deposit required and contributions can be made any time
• Option to make regular preauthorized deposits of $50 or more
• Maximum period the account can remain open is until December 31 of the year you turn 71, the year the account has been opened for 15 years, or the year following the withdrawal of a qualifying home, whichever is earliest
• Any funds remaining after the maximum period must be transferred to an RRSP/RRIF or withdrawn as a taxable withdrawal

Benefits

• Contributions are generally deductible on your income tax and benefit return for the year of the contribution or a future year, with notable exceptions
  • Any contributions made after your first qualifying withdrawal cannot be deducted on your income tax and benefit return for any year thereafter
  • Transfers from your RRSPs to your FHSA are not deductible
• Generally, amounts that you contributed to your FHSA, but did not claim as a deduction on your income tax and benefit return can be carried forward, even beyond the closure of your FHSA
• Can make a deposit one day and make a qualifying withdrawal the next
• Option to receive an annual paper statement or to access monthly statements via MemberDirect
• Use an FHSA in conjunction with an RRSP First Time Home Buyers Plan – which helps you save an additional $60,000 in your RRSP – and you can use both products for tax-free withdrawals for your first home purchase

*The First Home Savings Account is offered through a partnership with League Savings and Mortgage (LSM) and subject to fees as outlined in LSM’s deposit disclosure.

**Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.