First Home Savings Account (FHSA)

Save for your first home and enjoy tax benefits along the way. Connect with us to open an FHSA.

Meet the account for first-time home buyers

An FHSA is a registered account for first-time home buyers. It has built-in tax benefits, helping you save towards the purchase of your first home.

Benefits of an FHSA

Lower your annual tax bill

Any money you put into your FHSA within your contribution limit can be deducted from your annual income for that year or a later year. It’s like getting a nice discount at tax time.

Tax-free growth and withdrawals

Every dollar in your account grows tax-free. You won’t pay taxes on gains, dividends or interest earned. And you won’t pay taxes when you make a qualifying withdrawal.

Tax-free transfers

If you have leftover funds after making a withdrawal or decide not to buy a home, you can transfer the money tax free to a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF).
Who can open an FHSA?

To open an FHSA, you need to:

  • Be a Canadian resident
  • Have a social insurance number
  • Be between 18 (or the age of majority in your province or territory of residence)
  • Be a first-time home buyer*

*You’re considered a first-time home buyer if you didn’t live in a home that you, your spouse or common-law partner owned or jointly owned in the last four years. If you own a rental property, you can open an FHSA, so long as you’ve never lived in that property.

How to invest with an FHSA

You can boost your savings in an FHSA with income-generating investment products. The types of products you choose depend on your risk tolerance and timeline.

Explore our investment products

Mutual funds

A straightforward way to invest in professionally managed funds that provide diversification and growth potential.

Learn more about mutual funds

A few details you need to know

Contribution limits

You can contribute up to $8,000 annually, up to a lifetime limit of $40,000 over 15 years. You can carry forward up to $8,000 of unused annual contribution room for use in later years (subject to the lifetime contribution limit). Carry-forward amounts don’t accumulate until the FHSA has been opened. The best way to know how much you can contribute for the current year is to check your Notice of Assessment from the Canada Revenue Agency (CRA). Your notice is available in your online CRA account once your return is processed.

Penalties for over contributing

You may face a penalty of 1% per month on the excess contribution amount.

Learn more about excess FHSA amounts

Withdrawal rules

Withdrawals are tax-free, under the following conditions:

  • The home is in Canada
  • You’re a first-time home buyer and a Canadian resident
  • There must be a written agreement to buy or build a qualifying home before October 1 of the year following the withdrawal
  • You must intend to occupy the home as a principal residence within one year after buying or building
Learn more about investing
TFSA, RRSP or FHSA: Which is right for you?

Find out more about these common registered accounts.

Compare registered accounts

Reach your savings goals in five steps

Learn how to reach your savings goals faster with our five-step plan.

Get our five-step savings plan

Ready to grow your wealth?

Connect with us to start investing.
Find a financial representative

Not all products are available in all provinces.

In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.

Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are underwritten and administered by Co-operators Life Insurance Company.

Co-operators Life Insurance Company and Co-operators Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please visit our privacy policy for more information.

Co-operators® is a registered trademark of The Co-operators Group Limited.