Saving for your first home
Becoming a homeowner is a huge milestone. We can help you get there.
Investment accounts
Choosing the right accounts for your goals is one of the first steps to investing. Think of them as containers for your money. Explore our recommended investment accounts for first-time home buyers.
First Home Savings Account (FHSA)
Your investments grow tax-free towards the purchase of your first home. And your contributions are tax-deductible.
Registered Retirement Savings Plan (RRSP)
More than just a retirement plan, an RRSP can also get you one step closer to home ownership.
Learn more about RRSPs
Tax-Free Savings Account (TFSA)
Grow your investments tax-free and contribute for as long as you want – such as when you’re ready to purchase your first home.
Learn more about TFSAs
Non-Registered Savings Plan (NRSP)
Save without limits and access your money at any time – a great option if you’ve maxed out your TFSA and RRSP contributions.
Learn more about NRSPsWhat’s the difference between TFSAs, NRSPs, RRSPs and FHSAs?
| TFSA | NRSP | RRSP | FHSA | |
|---|---|---|---|---|
| Type of account | Registered | Non-registered | Registered | Registered |
| Minimum age | 18 | 18 (to own a plan), but no minimum on the annuitant. Or 16 for non-registered segregated funds, if purchased through a life-insurance company. | No, but you must have earned income and filed a tax return. | 18, and you must be an eligible first-time homebuyer who hasn’t lived in a qualifying home in the current or past 4 years |
| Maximum age | No | No | 71* | 71 |
| Annual contribution limit | $7,000 in 2025 | No | 18% of your earned income up to a maximum of $32,490 in 2025‡ | $8,000 |
| Do contributions reduce taxable income? | No | No | Yes | Yes |
| Are withdrawals taxed? | No | No | Yes | No, as long as it’s used toward purchasing a qualifying home |
| Are investment gains and losses taxable? | No | Yes | No | No |
| Can you name a beneficiary? | Yes | No, but certain investments within the account can have a beneficiary. Segregated funds, as an exception, must have a named beneficiary. | Yes | Yes |
*You can contribute to your own RRSP until December 31 of the year that you turn 71. You can contribute to a spousal RRSP until December 31 of the year that your spouse turns 71. RRSPs must be converted to a Registered Retirement Income Fund (RRIF) by December 31 of the year that you turn 71.
‡ Since unused contribution room carries forward, you may be eligible to contribute more than the annual maximum. To find out your individual RRSP limit for the current year, check your most recent Notice of Assessment from Canada Revenue Agency (CRA). Annual contribution limits are also reduced by any existing pension adjustments from an employer-sponsored pension plan. Your limit may be less than 18% if you contribute to a company pension plan.
Investment products
Like items that you put in a container, investment products are what you hold in your account. They help you grow your wealth, and each come with different risks and rewards. The products you choose depend on your risk tolerance and when you’re planning to buy a home. Explore our recommended investment products.
Mutual funds
Segregated funds
Get the latest market news
One of the first steps to becoming a homeowner is determining how much home you can afford. For most of us, that depends on how much money a lender will provide for a mortgage. But it’s important to consider other costs as well. The Canada Mortgage and Housing Corporation recommends your monthly housing costs shouldn’t be more than 39% of your gross monthly income. These costs include your mortgage payments, property taxes and utilities.
Use the Government of Canada’s Mortgage Qualifier Tool
The Government of Canada offers programs and incentives that can help you purchase your first home. They include the FHSA, the Home Buyers’ Plan (HBP) and the home buyers’ amount.
Learn about programs for first-time home buyers
Find out more about these common registered accounts.
Compare registered accounts
Whether you’re navigating the home buying process or you’ve just moved in, here are some things to keep in mind to help you prepare for home ownership.
Learn how to plan for home ownershipReady to grow your wealth?
Saving for something else?
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.
The content provided on this webpage is a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this information constitutes investment, legal, tax or other advice.
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