I don’t have $8,000 to contribute this year. Can I make it up next year?

Yes. Let’s say you have $2,000 to contribute this year, but expect to have more to contribute next year. Your $2,000 contribution can start to grow tax-free1 right away. Next year, you’ll have $8,000 of contribution room, plus the $6,000 of unused room from this year, for a potential contribution of $14,000.

How many years can I contribute to an FHSA?

The lifespan of an FHSA is 15 years. If you start contributing at age 25, you’ll have until age 40 to use your savings towards a qualified home purchase.

How is the FHSA different from the Home Buyers' Plan (HBP)?

Within the HBP, you can withdraw up to $35,000 from your RRSP, to help buy or build a qualifying home. While both the HBP and the FHSA are designed to help first-time homebuyers, the HPB requires that you repay the funds to your RRSP within 15 years. The FHSA has no requirement to pay back or replace the funds you’ve used. For more information on the HBP, see <a href="~/personal/mortgages/get-help-paying-for-your-first-home">Help for First-Time Home Buyers</a>.

Can I use the FHSA and the Home Buyers' Plan (HBP) at the same time?

Yes. The HBP allows you to use a portion of your RRSP savings towards your first home. You can use both the HBP and the FHSA to maximize the amount you can put towards your first home. Unlike the HBP, there is no repayment required for the FHSA.

What if I don't purchase a home?

If you have a change in plans and decide not to use your FHSA money to purchase a home, you have two options. You can transfer the money from your FHSA to your bank account, but you will have to pay tax on the total amount. Alternately, you could transfer your FHSA funds to either your RRSP or RRIF, without having to pay tax until you eventually withdraw the money.

Can I transfer funds from my RRSP to an FHSA?

Yes. You can transfer money from your RRSP to your FHSA without paying additional tax, but the transfers are subject to FHSA annual and lifetime contribution limits. Keep in mind, a transfer from your RRSP to FHSA does not qualify for income tax deductions, nor does it create RRSP contribution room. In-kind transfers are not currently available for the FHSA.

First Home Savings Account (FHSA)

Q: I don’t have $8,000 to contribute this year. Can I make it up next year?

&lt;p&gt;Yes. Let&#x2019;s say you have $2,000 to contribute this year, but expect to have more to contribute next year. Your $2,000 contribution can start to grow tax-free&lt;small&gt;&lt;sup&gt;1&lt;/sup&gt;&lt;/small&gt; right away. Next year, you&#x2019;ll have $8,000 of contribution room, plus the $6,000 of unused room from this year, for a potential contribution of $14,000.&lt;/p&gt;

Q: How many years can I contribute to an FHSA?

&lt;p&gt;The lifespan of an FHSA is 15 years. If you start contributing at age 25, you&#x2019;ll have until age 40 to use your savings towards a qualified home purchase.&lt;/p&gt;

Q: How is the FHSA different from the Home Buyers' Plan (HBP)?

&lt;p&gt;Within the HBP, you can withdraw up to $35,000 from your RRSP, to help buy or build a qualifying home. While both the HBP and the FHSA are designed to help first-time homebuyers, the HPB requires that you repay the funds to your RRSP within 15 years. The FHSA has no requirement to pay back or replace the funds you&#x2019;ve used. For more information on the HBP, see &lt;a href=&quot;~/personal/mortgages/get-help-paying-for-your-first-home&quot;&gt;Help for First-Time Home Buyers&lt;/a&gt;.&lt;/p&gt;

Q: Can I use the FHSA and the Home Buyers' Plan (HBP) at the same time?

&lt;p&gt;Yes. The HBP allows you to use a portion of your RRSP savings towards your first home. You can use both the HBP and the FHSA to maximize the amount you can put towards your first home. Unlike the HBP, there is no repayment required for the FHSA.&lt;/p&gt;

Q: What if I don't purchase a home?

&lt;p&gt;If you have a change in plans and decide not to use your FHSA money to purchase a home, you have two options. You can transfer the money from your FHSA to your bank account, but you will have to pay tax on the total amount. Alternately, you could transfer your FHSA funds to either your RRSP or RRIF, without having to pay tax until you eventually withdraw the money.&lt;/p&gt;

Q: Can I transfer funds from my RRSP to an FHSA?

&lt;p&gt;Yes. You can transfer money from your RRSP to your FHSA without paying additional tax, but the transfers are subject to FHSA annual and lifetime contribution limits. Keep in mind, a transfer from your RRSP to FHSA does not qualify for income tax deductions, nor does it create RRSP contribution room. In-kind transfers are not currently available for the FHSA.&lt;/p&gt;

Join our waitlist

What is the FHSA?

The First Home Savings Account (FHSA) is a tax-free¹ way to save for a down payment on your first home. Introduced by the Government of Canada, this new registered account makes it easier to reach your home ownership goals.

The FHSA is coming soon to Meridian. To be notified when it's available, simply join our waitlist.

How does an FHSA work?

The FHSA has similar tax benefits to Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs). Like an RRSP, FHSA contributions are tax deductible, and your savings will grow tax-free¹. Like a TFSA, you can take money from your FHSA without paying tax².

Contribute up to $8,000 each year, to a lifetime maximum of $40,000³. See our FHSA FAQs.

Why open an FHSA?

Save faster

As your savings grow, tax-free¹, you’ll keep more of the money you put away for your first property.

Reduce the tax you owe

When you put money into your FHSA, every dollar can reduce your taxable income for the year (just like an RRSP).

Stay flexible

Change of plans? No problem. Any unused FHSA savings can be transferred, without being taxed, to another registered account, such as your RRSP or Registered Retirement Income Fund (RRIF).

Contributions and withdrawals

Flexible, tax-deductible contributions

Contribute up to $8,000 every year, to a lifetime maximum of $40,000³. Every dollar you put into your FHSA is tax-deductible¹, which can reduce your taxable income. The lifespan of your FHSA is up to 15 years, with the freedom to carry forward unused contribution room from one year to the next.

Simple, non-taxable withdrawals

When it’s time to withdraw money for a qualified home purchase, withdrawals from your FHSA won’t be taxed². This means your savings can be used directly towards your home, without being taxed as income. If you have any unused FHSA funds, they can be transferred, tax-free, to your RRSP or RRIF.

Who is eligible to open a FHSA?

Saving for a home just got easier

Canadian residents, ages 18 and over, are eligible to open an FHSA account⁴. Keep in mind, when it comes time to use your FHSA money for a home, there are a few restrictions, including:

You must be a Canadian resident and a first-time homebuyer.
You’ll need proof that you intend to purchase or build a qualifying home.
You must plan to occupy the home within one year, as your principal residence.

The Canada Revenue Agency (CRA) considers you a first-time homebuyer if you have not occupied a home that you, or your current spouse or common-law partner, have owned in the last four years. If you live with a disability, or are helping a disabled relative to buy or build a home, there may be exceptions.

Frequently asked questions

Join our waitlist

Interested in knowing when the First Home Savings Account is available? Sign up here to let us know.

Questions? Get in touch to learn more.

Whether you’re just starting out or have been putting away money for a down payment for a while, the FHSA offers an exciting opportunity to help you save for your first home, faster.

Book an appointment Call us: 1-866-592-2226 Find a branch or advisor

Information regarding the First Home Savings Account is based on what is available from the Government of Canada as of July 2023, and subject to change.

¹Contributions and/or transfers (from your Registered Retirement Savings Plan (RRSP)) to your FHSA up to your maximum FHSA contribution room for the year are tax-deductible, and any investment income earned is tax-sheltered. Contributions in excess of your allowable FHSA contribution room will be taxed at 1% for every month it’s in your FHSA, until the excess FHSA amount is eliminated.

² Withdrawals from the FHSA to purchase a qualifying home must be made using a prescribed form.

To withdraw funds on a non-taxable basis, the holder must:

Be a first-time homebuyer at the time of withdrawal
- An individual counts as a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned or jointly owned.
Have a written agreement in place before the withdrawal to buy or build a qualifying home (in Canada) before October 1 of the year following the date of the withdrawal
Not have acquired the qualifying home more than 30 days before making the withdrawal
Intend to occupy that home as the principal place of residence within 1 year of acquiring the qualifying home
Be a resident of Canada from the time of the withdrawal until the home is acquired

If the above conditions are met, the entire balance in the FHSA can be withdrawn on a tax-free basis in a single withdrawal or a series of withdrawals.

³ The FHSA annual contribution limit is $8,000, up to a lifetime contribution limit of $40,000. You can carry forward your unused FHSA contribution room at the end of the year, up to a maximum of $8,000, to use in the following year. The maximum amount of unused FHSA participation room that can be carried forward to a subsequent year is $8,000.

⁴ To open an FHSA, you must be a qualifying individual. You are a qualifying individual if you meet all of the following requirements:

At least 18 years of age
Not more than 71 years of age on December 31 of the year
A resident of Canada
A first-time home buyer
- An Individual counts as a first-time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either:
  - You owned or jointly owned OR
  - Your spouse of common-law partner (at the time of the account opening) owned or jointly owned

First Home Savings Account (FHSA)

What is the FHSA?

How does an FHSA work?

Why open an FHSA?

Save faster

Reduce the tax you owe

Stay flexible

Contributions and withdrawals

Flexible, tax-deductible contributions

Simple, non-taxable withdrawals

I don’t have $8,000 to contribute this year. Can I make it up next year?

How many years can I contribute to an FHSA?

How is the FHSA different from the Home Buyers' Plan (HBP)?

Can I use the FHSA and the Home Buyers' Plan (HBP) at the same time?

What if I don't purchase a home?

Can I transfer funds from my RRSP to an FHSA?

Join our waitlist

Questions? Get in touch to learn more.

Legal