First Home Savings Account (FHSA)

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Make it yours with the First Home Savings Account.

Earn a 1.5% cash bonus on transfers into an eligible registered account.*

Disclaimer: * Bonus up to $3,750. Min transfer required. Conditions apply.

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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.

Benefits of a FHSA

no tax

Any investment income earned within the FHSA is tax free.

withdrawl

Tax deductible contributions and non-taxable withdrawals.

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Helps you save for a home down payment.

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If you do not use the FHSA to purchase a home, investments can be transferred to an RRSP. 

Make the most of your FHSA

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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.*

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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
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How can an FHSA be used?

Your FHSA is a registered account that can hold a variety of savings and investment products within that account, such as cash, GICs, mutual funds, and even stocks and bonds.

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What are the contribution limits?

Every year you gain contribution room in your FHSA. As of April 2023, you can contribute $8,000 annually in your FHSA. However, it’s important to make sure you don’t over-contribute.††

How would you like to build your FHSA?

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Not sure if this is the account for you?

This account might not be right 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
Discover better options

Advice+

Investments and peace of mind can go together.

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.

Read more investment articles

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Discover just how much you can spend before you start house hunting.

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Additional information

§
Full terms and conditions can be found here: https://www.scotiabank.com/ca/en/personal/investing/campaigns/transfer-in-offer.html
*
If you remove funds from the FHSA for any reason other than for a qualifying home purchase, you will have to pay taxes. You will be considered to be 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 as your principal residence that either you or your spouse or common law partner owned or jointly owned.
†

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††
If you over-contribute to your FHSA, then the excess amount will be taxed at 1% for every month it’s in your FHSA.
**
First-Time Home Buyers’ Tax Credit (HBTC), Government of Canada
1
You must be considered a first-time home buyer, you must have a written agreement to buy or build a qualifying home, either for yourself or for a related person with a disability, you must be a resident of Canada when you withdraw funds from your RRSPs under the HBP and up to the time a qualifying home is bought or built and you must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it.
2
After making a withdrawal to purchase a home, an individual will be required to close their FHSAs within one year and will not be permitted to open another FHSA.
3
A customer along with their spouse or common law partner can use their TFHSA towards the purchase of the same house if they both meet the first-time house buyer criteria.
4
This applies to withdrawals made after March 19, 2019. Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years, starting the second year following the year in which the withdrawal was made.
5
HBP will continue to be available, under which an individual may withdraw up to $60,000 tax free from an RRSP to purchase or build a home, on the condition that amounts withdrawn be repaid to the RRSP over a period not exceeding 15 years. First-time home buyers who withdraw money from their RRSPs between January 1, 2022, and December 31, 2025, will have five years instead of two, to begin repayments over a period not exceeding 15 years.
6
Individuals would be allowed to transfer funds from an RRSP to an FHSA on a tax-free basis, subject to the $40,000 lifetime and $8,000 annual contribution limits. These transfers would not restore an individual’s RRSP contribution room.
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