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All about the FHSA - First Home Savings Account

Get started on your path to owning your first home with a First Home Savings Account (FHSA). An FHSA is a tax-free savings product designed to assist individuals in saving for a downpayment for the purchase of their first home. It’s a great way to grow your savings!

With an FHSA you get the tax saving perks that come with registered products - Like an RRSP, your contributions reduce your taxable income (up to a lifetime maximum of $40,000) but, you can also withdraw the money tax-free, like a TFSA, for any qualifying home purchase.


FHSA with Tandia

To open an FHSA, you must be a Canadian resident between the ages of 18 and 71. You are considered a first-time homebuyer if you and your spouse have not owned a home during the year that the account is opened or the previous four calendar years.

Although no tax applies on FHSA withdrawals when used for the purchase of your first home, this benefit will only apply to one property over your lifetime. An FHSA account must be closed by the end of the year after the first qualifying withdrawal is made. After this, you cannot open another FHSA account.

Please remember, you are not considered a first-time home buyer if you intend to purchase an investment property.

Tanida FHSA How it works

The FHSA helps to make your dreams of owning your first home a reality. Through tax-deductible contributions and tax-free growth, you can boost your savings faster. You can contribute up to $8,000 annually with a lifetime contribution limit of $40,000.

You don’t have to worry about contributing the full amount in a single year. A maximum of $8,000 in unused contribution room will carry forward to the following year giving you the freedom to save more. For example, if you contribute $6,000 to your FHSA in 2023, you’ll be allowed to contribute $10,000 in 2024.

When it comes time to purchase your first home, no tax will apply on FHSA withdrawals if it is used on a qualifying property. There are some restrictions to withdrawing funds. You must be a Canadian resident and a first-time homebuyer. You will need proof that you intend to purchase or build a qualifying home. Also, you must plan to occupy the home as your principal residence within one year.

Your FHSA account can stay open for a maximum of 15 years or until the end of the year you turn 71.

Tandia FHSA Benefits

Individuals may claim an income tax deduction for eligible FHSA contributions (up to $8,000 annually and a lifetime maximum limit of $40,000).

Your FHSA allows your savings to grow tax-free. Any investment earnings and growth within the account are non-taxable allowing you to save more of your money for the purchase of your first home.

Your FHSA can hold a variety of qualified investments, including cash, Guaranteed Investment Certificates (GICs) and Mutual Funds*.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.

What happens if I don't use the money in my FHSA?

One of the great things about an FHSA is it gives you some flexibility if your plans happen to change. If you don't use your FHSA to buy a home, you can transfer the funds to an RRSP account anytime within 15 years or at the time you need to close your account. The transfers will not impact your RRSP's contribution room.

Alternatively, you can withdraw the amount as cash, but the money would be subject to taxes.


Tandia Mortgage Match

There's no shame in loving
your mortgage!

Fall in love with your mortgage when you finance with Tandia! Our 5-year fixed high ratio mortgage at 4.89%* is your perfect mortgage match. Whether shopping for a new home or looking to renew your current mortgage, you’re in great hands with Tandia. With the right connection – you too can love your mortgage.

*O.A.C. 4.89% is the regulatory Annual Percentage Rate if there is no cost of borrowing other than interest and is based on blended payments of principal and interest. Legal and appraisal fees may apply. Interest is calculated half-yearly, not in advance. A high ratio mortgage is applicable where a borrower places a down payment of less than 20% of the purchase price of a home. Additional premiums may apply in cases of a refinance, extended amortizations, non-owner occupied, or other instances where application details may warrant it. Some restrictions apply. Rate is subject to change without notice.


Tandia FHSA want to know more?

Have questions and want to know more?

Contact us or call our Member Solutions Centre at
1-800-598-2891. We are here to help.

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As a first-time home buyer, you probably have many questions. Buying a home involves many decisions. The endless lingo and terms can seem overwhelming. There’s no better place for a tailored personalized mortgage than right here at Tandia. From Home Buyers’ Plan (HBP) to repayment of RRSP funds, let us partner with you each step of the way. Visit our buying a home guide and let's get you started. 

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Here at Tandia, we’re proud to offer a comfortable mortgage experience and at a pleasantly low rate. We will work with you to ensure that your home financing suits your unique needs, while allowing the flexibility you want for the future.

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