Reduce your tax bill now
Contributions to an FHSA are tax deductible, as with an RRSP, so they help lower your taxable income and potentially increase your tax refund as you save for your first home.
Save smarter for your first home
The First Home Savings Account (FHSA) helps first-time homebuyers in Canada save faster for a down payment. It offers the following benefits:
Tax-free growth for later
Because investments in the FHSA grow tax free, more of your earnings stay invested, accelerating your savings and helping you reach your down payment goal sooner.
Built for flexibility
FHSAs offer a flexible way to save. You can carry forward unused contribution room and take up to 15 years to use the account to pay the down payment on your first home.
Receive up to $500 for your first home with your IG mortgage
With the right mortgage strategy, you’re building a roadmap to successful homeownership. With an eligible IG Mortgage, you could also receive up to $500 towards your new home. Terms and conditions below.
How does an FHSA work?
To open an FHSA, you must qualify as a first-time home buyer, meaning you haven’t owned or lived in a home (yours or your partner’s) in the last four years. These are the key figures to be aware of regarding an FHSA:
$40,000
Lifetime contribution limit.
$8,000
Annual contribution limit: however, unused
contribution room can be added to the following year.
$0
Amount you’ll pay in tax on investment growth and withdrawals, as long as they’re used to buy your first home.
Who qualifies for an FHSA?
- Canadian residents.
- Aged 18-71 (19 in some provinces).
- Not owned a home for the last four years.
- Not lived in a home owned by your spouse/partner in the last four years.
Use IG’s FHSA calculator
Find out how quickly your savings could grow and compare different contribution strategies
Additional resources
FHSA frequently asked questions
-
What is the FHSA contribution limit?
FHSA rules allow you to contribute up to $8,000 per year, with a lifetime maximum amount of $40,000. Any amount unused in one year can be carried forward to the next.
-
Can I transfer from an RRSP to an FHSA?
In general, yes, you can transfer funds from your RRSP to your FHSA, but it has to be a direct transfer. This means that the money is transferred directly between the financial institutions that hold the accounts. You would need to fill out a transfer form and give it to your financial institution. If you withdraw the money from the RRSP yourself and then contribute it to your FHSA, you’ll pay income tax on the amount withdrawn.
-
How can I use an FSHA for a down payment?
The FHSA is specifically designed to be used toward a down payment on your first home. You have up to 15 years from opening the FHSA to save within it, tax free, until you have enough for a down payment. You could save any tax refunds you might receive because of your FHSA tax-deductible contributions, and those, along with tax-free investment growth, should help you to save a large enough down payment to buy your first home faster.
-
What’s the deadline for using my FHSA?
You have 15 years after you open your FHSA to either use it or close it.
-
How can I withdraw from an FHSA?
When you’ve found a home you want to buy, you’ll need to fulfil a few conditions to make a withdrawal from your FHSA:
- Have an agreement to buy a home or build a new one by October 1 of the following year.
- Fill out Form R725 and send it to the financial institution that holds your FHSA.
- Buy the home no more than 30 days before withdrawing the money.
- The home should be your principal residence within a year.
You have the option to withdraw all the money at once or make several FHSA withdrawals. -
Can I use my FHSA for something other than buying a home?
If you don’t use some or all of your FHSA money to buy your first home, you can use it to go towards your retirement savings by transferring the money (with no immediate tax consequences) to your RRSP or RRIF. Otherwise, you can withdraw it (and pay income tax on it) and use it for any purpose.
-
What is the deadline for FHSA contributions?
December 31 is the last day you can contribute to your FHSA for that tax year.
-
Is the FHSA available in Canada?
Yes, the FHSA is a registered savings plan created by the Government of Canada and is only available in Canada.
-
Is the FHSA being discontinued?
No, the FHSA is still an ongoing savings plan. Some people confuse the FHSA (First Hоme Savings Account) with the first-time homebuyer incentive, which has been discontinued.
-
What happens to the FHSA after 15 years?
Fifteen years after opening it, you have to close your FHSA. If you’re not using the money to buy a home, you would need to transfer it to an RRSP or a RRIF to avoid paying income tax on the full amount.
-
What is the FHSA limit for 2025?
In 2025 (as with any year), you can contribute up to $8,000 to your FHSA, as long as you still have lifetime contribution room.
-
Can you contribute to an FHSA after buying a house?
No, the FHSA is only for people who have yet to buy their first home. It is not an account for people who already own their home.
-
How can I open an FHSA account?
Your IG Advisor can help you to open an FHSA account and also recommend the best investment options to help you reach your first home savings goals faster.
Connect with an IG advisor today
Ready to take the next step in homeownership? Speak with an IG Advisor to develop a mortgage strategy that aligns with your lifestyle and financial future.
Mortgages are offered by Investors Group Trust Co. Ltd., a federally regulated trust company, and brokered by nesto Inc. Licences: Mortgage Brokerage Ontario #13044, Saskatchewan #316917, New Brunswick #180045101, Nova Scotia #202507230; Mortgage Brokerage Firm Quebec #605058; British Columbia, Alberta, Manitoba, Newfoundland/Labrador, PEI, Yukon, Nunavut, Northwest Territories.
*In Ontario, a mortgage agent, and in New Brunswick and Nova Scotia, a mortgage broker or a mortgage associate.
*In Quebec, a mutual fund representative.
Mortgage advisors are licensed professionals and equivalent to the following titles per province: Sub Mortgage Broker/Mortgage Broker in British Columbia, Mortgage Associate/Mortgage Broker in Alberta, Associate/Mortgage Broker in Saskatchewan, Salesperson/Authorized Official in Manitoba, Mortgage Agent/Mortgage Broker in Ontario, Mortgage Broker in Quebec, Mortgage Associate/Mortgage Broker in New Brunswick, Associate Mortgage Broker/Mortgage Broker in Nova Scotia, or Mortgage Broker in Newfoundland & Labrador.
Offer valid with eligible mortgage submissions by/on December 31, 2025.
With an Eligible Mortgage (as defined below) with Investors Group Trust Co. Ltd. (“IG”), you may be eligible for up to $500 CAD cashback that will be paid as outlined below, subject to the following Terms and Conditions:
Eligible Mortgage:
An Eligible Mortgage is subject to IG’s standard credit approval processes. In addition to approval based on standard lending criteria, it must satisfy all of the following criteria:
- Eligible for first time home buyer purchase transactions that are client insured/high ratio, default insured by either CMHC, Sagen or Canada Guaranty;
- Minimum mortgage principal loan amount of $100,000 CAD;
- Must be a 4 Year Fixed, or 5 Year Fixed mortgage; OR 5 Year Adjustable-Rate Adjustable Payment mortgage;
- Must be a first ranking residential mortgage;
- Mortgage cannot include a HELOC,
- Mortgage must be for the same property.
- Principal residence only
- Days to Fund is 120 days from submission date;
- Prorated cashback claw back applies if term is broken early.
- Not available for non-client insured, renewals, transfers, and IG refinances transactions
- Not available for ports, blends, or assumptions transactions.
- Standard credit adjudication guidelines must be met
Cashback:
- Cashback noted as cashback on the Loan Approval Letter.
- Upon loan funding, $500 cashback will be sent to your solicitor if all Terms & Conditions are met.
Other Terms:
- You must maintain your mortgage for the duration of the term you are approved for, otherwise, you will be required to reimburse a portion of the Cashback received, in proportion to the term remaining.
- Limit 1 Offer per individual Eligible Mortgage.
- The Offer may be modified, extended, or withdrawn without prior notice at any time.
- The Offer may not be combined or used with any other IG offer, promotion, or benefit, other than the ones mentioned here, and cannot be applied retroactively.
- There may be tax implications to the Offer. If you require tax advice, please contact your personal tax advisor.