Jumpstart your savings by 4.00%
Enjoy flexibility and great returns on personal deposits for a limited time when you open a Jumpstart™ High Interest Savings Account for your FHSA. Conditions apply.1
A First Home Savings Account (FHSA) is a tax-free way to save towards your first home.
Invest your hard-earned money, grow it tax-free, and withdraw it when you find your first home.
Qualified withdrawals from your FHSA to buy a home won’t be taxable.
Contributions can be used as deductions against your earned income, lowering the tax you pay when you file your return. And like a TFSA, your investment earnings won’t be taxed either.
You can keep your FHSA open for 15 years, but if you don’t end up buying a home, you can transfer your FHSA savings to an RRSP or RRIF without paying taxes on the transfer.3
To be eligible you must:
Plus, at Vancity, you have the opportunity to invest in a world you want to live in with Socially Responsible Investing options.
Not sure what qualifies as a first home? See FAQs
These are the actual investments that go into your account. They can be low-risk, like our FHSA Jumpstart™ High Interest Savings Account or term deposits. Mutual funds* have a variety of risk levels. You can also choose a mix.
Talk to an advisor today to get personalized advice.
Put your money into the investment, or multiple investments, that you chose. Be aware that an over contribution will result in a penalty tax.6
Over time, you could see your investment grow. As time passes, continue to make contributions and even add different types of investments to the mix so you could save and earn more.
Like an RRSP, with an FHSA you can deduct your contributions from your taxable income and save taxes. Note, you don’t have to deduct your contributions within the same year that you make them.3 In some cases, you may see more benefit in deducting over several years, or in higher income years.
Investment income you make through your FHSA won’t be taxed if you use the funds to buy or build your first home .3
Once you’ve found the home for you and meet all the qualifying withdrawal conditions, withdraw your funds tax-free. Your FHSA can stay open for 15 years or until the end of the year you turn 71, or at the end of the year after your withdrawal — whichever comes first.
Withdrawals to purchase your first home cannot be made more than 30 days in advance of signing the purchase agreement.
Contribute up to $8,000 to your FHSA every year up to a lifetime contribution limit of $40,000. Once opened, you can carry forward up to $8,000 per year in unused contributions, subject to the lifetime limit.7
You can keep your FHSA open for 15 years. If you don't end up buying a home, you can transfer your FHSA savings to an RRSP or RRIF without paying taxes on the transfer.8
Like a TFSA, qualifying withdrawals from your FHSA to purchase your first home are non-taxable. And contributions are tax-deductible but don’t need to be repaid (unlike the Home Buyer’s Plan in an RRSP).
The annual contribution period for the FHSA is January 1 to December 31. Deposit to your FHSA before December 31 to have your contribution amount deducted from your taxable income for that financial year.
Interested in keeping your home savings in an FSHA or another type of investment? We can work with you to choose investment options that can benefit your future and your community’s, too.
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If you are already a member, you can log in to open a First Home Savings Account.
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We have plenty of resources to guide you through your first-time home ownership journey, from building your down payment to choosing the right mortgage for your needs.
Get the guideOur pros with some advice on FHSAs.
Who can be considered a first-time home buyer? What’s considered a first home?
You are considered a first-time home buyer if you did not live in a “qualifying home” owned by you, or your spouse or common-law partner, at any time in the calendar year your FHSA account is opened or the previous four years.
A "qualifying home" is defined as a housing unit located in Canada. This includes shares to own a unit of co-op housing.
What else can I do to save for my first home?
There are many ways to build your down payment for your first home, and everyone’s setup is unique. You might consider consolidating debt under a single loan, investing in an RRSP, in term deposits or a high interest savings account —or a combination of those things.
The best way to start is by booking an appointment with us. Our specialists can work with you to help build your down payment in a way that makes sense for your unique financial needs and goals.
How is the FHSA different from the Home Buyers’ Plan (HBP)?
The Canadian Home Buyers’ Plan allows you to withdraw up to $60,000 from your RRSPs to buy or build a qualifying home and pay back the funds to your RRSP over 15 years.
If you’re already participating in the Home Buyers’ Plan (HBP), you’ll have the option to combine your HBP and FHSA to buy the same property. But unlike the HBP, the funds you withdraw from your FHSA do not need to be paid back.
How many FHSAs can I have?
As a holder and owner of an FHSA, you can have as many FHSA accounts as you wish as long as you don’t exceed the annual and lifetime limits as provided by the Canada Revenue Agency(CRA).
What are the requirements for a qualifying withdrawal from my FHSA?
A qualifying withdrawal from your FHSA requires 3 things:
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*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. 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, their values change frequently, and past performance may not be repeated.
Your deposits in this account are 100% protected by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC).
Vancity is a BC Financial Services Authority authorized credit union and is covered by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC). To find out more about this coverage, visit the CUDIC website or ask us for more details.
1Rate is subject to change or may be withdrawn without notice at any time. Interest is calculated on closing daily balance in an Account and paid at month-end. The interest is an annual interest rate. Interest is earned in the currency of the account. Promotional interest rate will not be earned on pre-existing Vancity accounts.
2Withdrawals from the FHSA to purchase a qualifying home must be made using a prescribed form.
To withdraw funds on a non-taxable basis, the holder must:
If the above conditions are met, the entire balance in the FHSA can be withdrawn on a tax-free basis in a single withdrawal or a series of withdrawals.
3Please consult your tax advisor for more information on potential tax implications.
4To open an FHSA, the individual must be a resident of Canada with a SIN who has reached the age of 18 years or older but not more than 71 years on December 31 of the year you open an FHSA.
5An individual is considered to be a first-time home buyer if at any time in the part of the calendar year before the account is opened or at any time in the preceding four years they did not live in a qualifying home (or what would be a qualifying home if located in Canada) that either (i) they owned or (ii) their spouse or common-law partner owned (if they have a spouse or common-law partner at the time the account is opened).
6Members are responsible for their CRA contribution limits for registered plans and knowing what those limits are. Vancity is not responsible for any loss or damage from over contributions.
7Starting in the year the FHSA is opened, the holder can contribute, or transfer from an RRSP, a total of $8,000, plus any carry-forward available. The maximum lifetime amount that can be contributed or transferred to an FHSA is $40,000. An individual may carry-forward up to $8,000 of any unused contribution room in any year. Carry-forward amounts only start accumulating after an individual opens an FHSA for the first time. Unlike RRSPs, contributions made within the first 60 days of a subsequent year can’t be deducted in the previous tax year.
Where a holder transfers an amount from their RRSP into their FHSA, it would not be a taxable withdrawal from their RRSP (however they would not get back any RRSP contribution room).
Individuals can own more than one FHSA but the total amount they may contribute to all of their FHSAs cannot exceed their annual and lifetime contribution limits. Individuals must keep track of their own contribution room. There is a 1% per month penalty tax on any overcontributions.
Similar to RRSP contributions, there is no requirement to claim the FHSA deduction in the tax year in which a contribution is made. The amount can be carried forward indefinitely and deducted in a later tax year.
8The FHSA can remain open for a maximum of 15 years, subject to the following conditions:
FHSA must be closed at the end of the year in which the earliest of the following events occur:
Savings in the FHSA not used to buy a qualifying home can be transferred on a tax-deferred basis into an RRSP (without specifically needing contribution room) or registered retirement income fund (RRIF); or withdrawn on a taxable basis.
Taxable withdrawals will be subject to withholding tax (at the same rates as RRSP withdrawals, except for in Quebec where the rates will be similar to taxable withdrawals from an RESP).
