First Home Savings Account (FHSA)

Whether you’re thinking about buying your first home or you’ve already started saving, a First Home Savings Account is designed to help you meet your savings goals.

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What is an FHSA?

An FHSA is a registered savings account that allows prospective first-time home buyers to save up to $40,000 that can be used toward the purchase of their first home. Contributions made to the FHSA are tax-deductible and withdrawals used to purchase a first home, including the investment income, are non-taxable.

FHSA features you’re sure to enjoy

More money in your pocket

Contributions are tax-deductible and you don’t pay any taxes on funds withdrawn to use on the purchase of your first home.

Catch up on unused contribution room

Carry over any unused contribution room to the next year, providing even more flexibility in your savings.

Automate your contributions

Automatically transfer funds to your FHSA every month so you can grow your savings without having to think about it (while ensuring your contributions don’t exceed the annual limit).

Choose the FHSA solution that’s best for you

Variable savings

Choose this competitive interest, variable-rate savings option while you decide the best way to invest your funds.

Features

Earn interest right from dollar one
Interest calculated on a minimum monthly balance and paid annually on December 31
Deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba*

GICs

Choose a term length that works for you and earn a guaranteed rate of return.

Features

Choose from convenient 1- to 5-year terms with a minimum investment of $500
Interest is paid annually and can be compounded (added to the GIC) or paid out to your account
GICs are non-redeemable
Deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba*

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Getting to know FHSAs

FHSA contribution limits

Annual contributions are capped at $8,000 with a lifetime contribution limit of $40,000.
Unused contribution room from one year can be carried forward to the next year. So, for example, if you contributed $2,000 one year, you could carry an additional $6,000 into the next year, making your annual contribution limit a total of $14,000 that year.

FHSA eligibility

To open an FHSA, you must:

Be 18 years or older
Be a resident of Canada
Be a first-time home buyer

Using your FHSA funds

You must be a resident of Canada purchasing your first home. You must have a written agreement to buy or build a qualifying home, in Canada, that you intend to occupy as your principal place of residence within one year of purchase or building.

What happens if I go over my contribution limit?

Similar to a TFSA, it is your responsibility to make sure you do not go over your maximum annual contribution limit. Any over-contributions are subject to penalties and interest.

Is there a maximum number of years I can have an FHSA?

Yes – the account can be active for whichever comes first:
•   A maximum of 15 years
•   Until you turn 71
•   Until the end of the year following your qualifying withdrawal for a first-time home purchase

What happens to the account if I don’t purchase a home?

Any savings you don’t use to purchase your first home can be transferred to a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) and taxed upon withdrawal according to the applicable rules. If you choose to withdraw unused savings from the FHSA, those funds would be subject to taxes.

What’s the difference between the FHSA and a Home Buyer’s Plan?

With the Home Buyer’s Plan, Canadians can withdraw up to $60,000 from their RRSP, and the funds must be paid back within 15 years. The FHSA is set up to help you save to purchase your first home and funds do not need to be paid back into the account.

FHSA rates

GIC (RRSP / RRIF / TFSA / FHSA)
12-month	4.10%
24-month	4.10%
36-month	3.80%
48-month	3.80%
60-month	3.80%

FHSA (variable)	2.95%

GIC rates last updated October 24, 2024. Rates subject to change without notice.

*Includes all savings and chequing accounts, RRSPs, RRIFs, TFSAs, FHSAs, and GICs.

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