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Introducing our First Time Home Savings 16 Month Flex GIC.

Earn 0.85% in the first 8 months1 and 6.50% in the second 8 months1. Plus, redeem any time after the first 30 days.

Why invest in a First Home Savings Account (FHSA)?

Save on taxes with deductible contributions.
Your lifetime contribution limit is $40,000. With an annual contribution limit of up to $8,000 that is applicable from the tax year in which you open an FHSA.
Grow your savings and investments
tax-free.
Your FHSA will help you keep your home ownership goals on track by letting you grow your savings and investments
tax-free in the account. An FHSA loan is also available to help kickstart your savings.
Withdraw funds
tax-free.
Put more of your savings towards your goals. FHSA withdrawals can be made
tax-free when used for a qualifying first home purchase.
Young woman and man looking at tablet device Young woman and man looking at tablet device

What is a First Home Savings Account (FHSA)?

Available now at Coast Capital, the FHSA is a new registered account you can use to save tax-free towards the purchase of your first home. Here’s how it works:

  • Lower your taxable income while you save for your first home: With FHSA, you can make tax deductible contributions up to $8,000 annually, to a lifetime maximum of $40,000. If you don’t contribute the full $8,000 in a single year, the balance can be carried forward and added to a future year’s contribution limit. 
  • Build on your contributions with tax-free growth: Your funds, interest and any investment earnings can stay in the FHSA and grow tax-free with every contribution you make until you’re ready to buy your first home.
  • Carry forward contribution room: Breathe easier knowing you don’t have to invest the same amount every year. Unused contribution room can be carried forward as long as you have the account.

What is a First Home Savings Account (FHSA)?

Available now at Coast Capital, the FHSA is a new registered account you can use to save tax-free towards the purchase of your first home. Here’s how it works:

  • Lower your taxable income while you save for your first home: With FHSA, you can make tax deductible contributions up to $8,000 annually, to a lifetime maximum of $40,000. If you don’t contribute the full $8,000 in a single year, the balance can be carried forward and added to a future year’s contribution limit. 
  • Build on your contributions with tax-free growth: Your funds, interest and any investment earnings can stay in the FHSA and grow tax-free with every contribution you make until you’re ready to buy your first home.
  • Carry forward contribution room: Breathe easier knowing you don’t have to invest the same amount every year. Unused contribution room can be carried forward as long as you have the account.

Eligibility Criteria

  • At least 18 years of age but no less than the age of majority in the province where you live
  • Canadian resident from the time that you make your first qualifying withdrawal from one of your FHSAs until the earlier of the acquisition of the qualifying home, or the date of death
  • Have a Social Insurance Number (SIN)
  • A first-time homebuyer2

FAQs

 

First Home Savings Account (FHSA) and Home Buyer’s Plan (HBP)

 
 

FHSA

  • Funds can be taken out at any time with no withdrawal limit for qualified first-time homebuyers
  • No minimum holding period requirement for contributions to be eligible for withdrawal
  • Withdrawals will not be treated as taxable income
  • No repayment is required

 HBP

  • Money can be withdrawn from Registered Retirement Savings Plan (RRSP) up to $35,000 to help purchase a home
  • Fund can be withdrawn 90 days after it has been deposited into RRSP
  • Withdrawal money will not be taxed as income for as long it’s paid back on time
  • Withdrawal money must be repaid within 15 years

Yes, you can use your FHSA alongside your RRSP under the HBP.

No, you will be able to use both your FHSA as well as make a withdrawal from your RRSP under the HBP to purchase a qualifying home. Keep in mind that with an HBP withdrawal, you’ll have to repay any funds you withdraw from your RRSP. 

FHSA Withdrawals

 

If you meet the qualifying withdrawal conditions, you can withdraw from your FHSAs tax-free either as a single withdrawal or as a series of withdrawals. 

A qualifying withdrawal from your FHSA must meet all of the following conditions:

  • You must be a first-time homebuyer
  • You must have a written agreement to buy or build a qualifying home with the acquisition or construction completion date of the qualifying home before October 1 of the year following the date of the withdrawal
  • You must not have acquired the qualifying home more than 30 days before making the withdrawal
  • You must be a resident of Canada from the time that you make your first qualifying withdrawal from one of your FHSAs until the earlier of the acquisition of the qualifying home or the date of your death
  • You must occupy or intend to occupy the qualifying home as your principal place of residence within one year of buying or building it

There is no minimum number of days that contributions or transfers to your FHSA must stay in the account before you can use them for a qualifying withdrawal.

To start the withdrawal, please book an appointment and one of our advisors can help you fill out Form RC725. 

For non-qualified withdrawals, you must report the withdrawn amount from the FHSA as Income on your income tax and benefit return for the year the withdrawal is received. That amount will be subject to income tax withholding and can be claimed on your income tax and benefit return as a credit towards any tax owing for the year of the withdrawal.

For non-qualified withdrawals, withholding tax will be applied per CRA regulations and will be calculated and collected by Coast Capital.

AMOUNT WITHDRAWN

WITHHOLDING TAX 

Up to $5,000

               10%

$5,000.01 to $15,000

               20%

Over $15,000

               30%

Non-residents - any withdrawal amount

               25%

The FHSA account holder is responsible for keeping the proof for 7 years based on CRA requirements.

The funds in your FHSA have to be used by December 31 of the 15th year after opening the account, or by December 31 of the year you turn 71, whichever comes earlier. If you have not used the funds in your FHSA by that time, you can transfer the funds from your FHSA on a tax-free basis to your RRSP without impacting your RRSP contribution room, or to your Registered Retirement Income Fund (RRIF). Otherwise, you can withdraw funds from your FHSA, but your withdrawal will be taxed.

Other Popular FAQs

 

FHSA is available for the following product offerings:

  • Savings deposits
  • GICs
  • Mutual Funds

Yes, but keep in mind that the total contribution amount to all FHSAs cannot exceed the annual and lifetime contribution limits.

You cannot open a joint account, but you can both open and use your separate FHSAs for your first home. This means you will not be able to contribute directly to your partner’s FHSA.

Yes, you can but money transferred from your RRSP cannot be claimed on your taxes. It will not return your RRSP contribution room and will count against your FHSA’s available contribution room.

Co-operative ownership of a home may count as homeownership, depending on the percentage of your stake. Ownership of less than 10% doesn’t qualify. This means you can use your FHSA to purchase a stake of more than 10% in a qualifying property, but will not be able to open an FHSA if you have more than 10% ownership of your current home.

You might also be interested in:

Open your FHSA account today.

Call us at 1.888.517.7000 Mon-Sat, 8am-8pm; Sun, 9am-5:30pm PST.

Get started

*A “first-time home buyer” means an individual who has not lived in a home that was owned by that individual and/or that individual’s spouse or common-law partner in the calendar year in which the individual opens the First Home Savings Account or at any time in the preceding four (4) calendar years.

Coast Capital Savings Federal Credit Union provides advice and service related to deposit, loan and mortgage products. Coast Capital Wealth Management Ltd. provides investment and financial planning services. Coast Capital Financial Management Ltd. provides advice and service related to segregated funds, annuities, and life insurance products. Worldsource Financial Management Inc. provides advice and service relating to mutual funds. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may all be related with mutual fund investments. Important information about mutual funds is contained in the relevant fund facts and simplified prospectus. Please read the fund facts carefully before investing. Only deposits payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act.

The content on this page is provided for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained on this page, including information relating to interest rates, market conditions, tax rules, fees, and other investment factors is subject to change without notice and Cost Capital Savings Federal Credit Union is not responsible to update this information. All third-party sources are believed to be accurate and reliable as of the date of publication and Coast Capital Savings Federal Credit Union does not guarantee the accuracy or reliability of such sources. Readers should consult their own professional advisor for specific financial, investment, and tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.