Skip to main content

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.

An Intro to First-Time Homebuying

Purchasing your first home is exciting and a life goal for many people. Whether house-shopping alone, with a partner or your whole family, there is a lot to consider beyond just how many bedrooms you need. Take some time to evaluate your current situation and your dreams for the future, and let these helpful tips guide you towards a purchase you’ll be happy about.

What Are You Working With?

To determine what you can buy, dig into the nitty-gritty such as your sources of income, debts and liabilities, and the cash you have saved for your down payment. To qualify for a conventional mortgage, you will need at least 20% of the purchase price of the home to put towards a down payment – however, if you don’t have 20% saved, you may still have options available to you, such as a High Ratio mortgage. Be sure to keep an eye on current interest rates too, so you’ll have an idea of what to expect when the time comes. Those mortgage payments will soon be coming around like clockwork, so having a clear picture and knowing exactly what you can afford will help you to avoid biting off more than you can chew.

Can two people use their FHSA to purchase the same house?

Usually, yes! FHSA accounts can only be held by an individual, but if two (or more) people were to purchase a home together, they could use the money in their FHSA accounts towards the purchase of the same home.

Can I withdraw from FHSA anytime?

Yes, there is no minimum amount of time that you must hold funds in your FHSA before they are withdrawn. The qualifying home must have been purchased within 30 days of making the withdrawal from your FHSA.

What kind of investments can I hold in my FHSA?

You can generally hold the same types of investments in an FHSA that you could with an RRSP or TFSA, such as cash, GICs, mutual funds, Canada and provincial savings bonds, ETFs and even certain shares or securities.

Tandia Mortgage Match

Get ready to love
your mortgage!

Fall in love with your mortgage when you finance with Tandia! Choose from our 5-year fixed high ratio mortgage at 4.79%* or our 3-year closed fixed rate mortgage at 5.19%* for 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., additional premiums may apply in cases of a refinance, extended amortizations, non-owner occupied, or other instances where application details may warrant it. Legal and appraisal fees may apply. Interest is calculated half-yearly, not in advance. Rates are product-specific and subject to change without notice. Some restrictions apply. These Annual Percentage Rates may only apply if there is no cost of borrowing other than interest and is based on blended payments of principal and interest. A high ratio mortgage is applicable where a borrower places a down payment of less than 20% of the purchase price of a home.

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.

Balancing financing and expenses is a constant challenge. Use our Mortgage Calculator to figure out what the costs are. It's quick, accurate and easy to use.  Let us do the math.

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. 

Welcome to an easy-going life with a Tandia Mortgage.

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.

You’re not just our customer, you are a member and an owner 

​That means you can be confident that your unique needs come first. We understand that everyone is different, and we tailor solutions that are just right for you. Our values prove it.


Meet with a financial expert

Our representatives are ready-when-you-are to help with investment questions, advice and solutions. We can meet you where and how you want to meet. We are available by email, by phone, in person, or by video conferencing.
Select Image