First Home Savings Account (FHSA)
There’s a home out there just for you. Make it yours with the First Home Savings Account. Now available at Scotiabank.‡
For a limited time, earn an interest rate of 5.00% on new FHSA deposits with the Savings Accelerator Account.†
What is an FHSA?
This new account is a great savings vehicle for your homebuying goals because you never pay a tax bill on these savings.*
It's the best part of both a Registered Retirement Savings Plan (RRSP), which gives you tax-deduction perks, and a Tax-Free Savings Account (TFSA), which lets your investments grow without a tax bill. This means that the money you put in and earn in this account goes towards the down payment of your first home.
Why invest in an FHSA?
The First Home Savings Account (FHSA) is a registered investment account that can help Canadians contribute up to $40,000 for their first home.
Any growth from your investments is tax-free. Contributions you make to your FHSA can also reduce your taxable income.*
What are the contribution limits?
Every year you gain contribution room in your FHSA. As of January 2023, you can contribute $8,000 annually in your FHSA. However, it’s important to make sure you don’t over-contribute.††
Who’s eligible for the FHSA?
There are three important components to qualify for this investment vehicle:
- You need to be a resident of Canada
- You have to be at least 18 years of age (or the age of majority in your province or territory)
- You or your spouse can't own a home in which you lived, at any time in the year the account is opened or during the previous four calendar years
Is this Registered Plan right for you?
Right for you if you:
- Are a Canadian Resident
- Have reached the age of majority in the province where the account is set-up
- Are a First Time Home Buyer
- Want your savings to grow over time with the ability to withdraw all of the funds tax-free to buy your first home
May not be right for you if you:
- Are not a first-time home buyer*
- Are not a Canadian Resident
- Are turning 72 this year -since you can only hold and contribute to a FHSA until the year in which you turn 71
Frequently Asked Questions
Building your FHSA
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How to save for a down payment towards a home as a newcomer
New to Canada and want to buy a home? Here's how to save for your down payment.
Understanding FHSA contribution limits
How you can use the FHSA properly to save toward your first home.
How the Home Buyers' Plan (HBP) can help you become a homeowner
Learn how the Home Buyers' Plan lets you use your RRSP to help pay for your first home.
Find out what your mortgage payments will be, so you can ensure it fits your budget.
What can I afford?
Discover just how much you can spend before you start house hunting.
The bonus interest rate (The “Bonus Rate”) applies to New Deposits (defined below) made into an eligible Scotiabank Savings Accelerator Account (“SSAA”) between August 14, 2023 and January 31, 2024 (the “Bonus Rate Period”). Eligible SSAAs include only those held within a First Home Savings Account (FHSA) at either The Bank of Nova Scotia or Scotia Securities Inc. (together, “Scotiabank”). SSAAs held within a TFSA, RRSP, RRIF, LIF, Registered Locked-In RSP, RESP, RDSP or any other registered plan or non-registered account at Scotiabank are not eligible for this Bonus Rate.
During the Bonus Rate Period, the Bonus Rate of 4.25% will be earned only on that portion of the SSAA Daily Balance that is greater than the SSAA Daily Balance as of August 13 2023 (“New Deposits”). The “SSAA Daily Balance” means, with respect to any particular day, the closing balance in the eligible SSAA. In addition, New Deposits will continue to earn interest at the posted annual interest rate for the SSAA (click here for current rates).
The Bonus Rate will cease to apply as of February 1, 2024. The bonus interest earned during the Bonus Rate Period will be calculated daily and paid monthly. All interest rates described herein are annual rates.
SSAAs must be open and in good standing in order to receive any interest calculated at the Bonus Rate. A SSAA is not in 'good standing' if it has a negative balance, or the account holder is in breach of the account agreement with Scotiabank.
It is the SSAA account holder’s responsibility to determine his or her maximum allowable annual contributions in SSAAs held in registered plans.
All other terms and conditions of the SSAA continue to apply, refer to https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/savings-accelerator-account.html for details, including calculation of interest.
By accepting this offer, you consent to receive messages from Scotiabank via e-mail, Scotia OnLine and/or the Scotiabank Mobile Banking App so that we can notify you when the Bonus Rate Period and the offer are expiring and what interest rate will take effect after the Bonus Rate Period expires. Should you ever need to change your email address, you can update it by calling us or going into a branch.
These offer terms, including the Bonus Rate, may be changed, cancelled or extended at any time, in whole or in part, without notice.
Scotia Securities Inc. is a mutual fund dealer and is a corporate entity, separate from, although wholly-owned by, The Bank of Nova Scotia ("Scotiabank"). ScotiaFunds are managed by 1832 Asset Management L.P. and are available from Scotia Securities Inc. 1832 Asset Management L.P. is a limited partnership the general partner of which is wholly-owned by Scotiabank. Scotia Smart Investor is a trade name of Scotia Securities Inc.