A First Home Savings Account (FHSA)

Tonia Jacobsen • April 18, 2024

Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers.


What is an FHSA?

An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA.


Reasons to Invest in an FHSA:

  • Save up to $40,000 for your first home.
  • Contribute tax-free for up to 15 years.
  • Carry over unused contribution room to the next year, up to a maximum of $8,000.
  • Potentially reduce your tax bill and carry forward undeducted contributions indefinitely.
  • Pay no taxes on investment earnings.
  • Complements the Home Buyers’ Plan (HBP).


How Does an FHSA Work?

  1. Open Your FHSA: Start investing tax-free by opening your FHSA.
  2. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster.
  3.  Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home.


Benefits of an FHSA:

  • Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income.
  • Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA.
  • No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home.


Numbers to Know:

  • $8,000: Annual tax-deductible FHSA contribution limit.
  • $40,000: Lifetime FHSA contribution limit.
  • $0: Taxes on FHSA earnings when used for a qualifying home purchase.


In Conclusion

A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.


Tonia Jacobsen

Mortgage Expert

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Bank of Canada Holds Rate at 2.25% — April 29, 2026

By Tonia Jacobsen • April 29, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Tonia Jacobsen • April 22, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.