Canadians can now boost their savings for a down payment on a home with a first home savings account (FHSA). The account, also referred to as the tax-free first home savings account, creates up to $40,000 in tax-free savings room for first-time home buyers. To date, more than 300,000 Canadians have opened an FHSA. In this article, we’ll answer common questions about the account and help you find the best one for your needs.

Frequently asked questions about FHSAs

On April 1, 2023, Questrade became the first company to launch an FHSA in Canada. Since then, more than 20 other financial institutions, including all of Canada’s Big Six banks, have launched the new account. More are expected to make their FHSAs available in 2024. 

Overall, the roll-out of FHSAs has been slower than anticipated, and availability remains limited today, even at some of the large banks. For example, you may have to speak with a representative in person to open an account, and some FHSAs are not yet available through banks’ investment platforms. Below, read more about how to open an FHSA at each institution.


Yes. When FHSA rules were first proposed, the federal government said it would not allow Canadians to withdraw from both the FHSA and the Home Buyers’ Plan (HBP) to make a qualifying home purchase. However, that rule was amended before the FHSA’s official launch. As of April 1, 2023, Canadians are allowed to use both the FHSA and HBP on the same qualifying home. Read more about the HBP.


Yes. However, unlike with registered retirement savings plans (RRSPs), FHSA contributions made during the first 60 days of the calendar year are not deductible on your income tax return for the previous year.


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Where you can open an FHSA right now

More than 20 financial institutions currently offer an FHSA, according to numbers released by the federal government in November 2023. The MoneySense editorial team will update this page as more accounts become available, so you can easily find the best FHSA. Here are the accounts available right now. As all FHSAs are registered, the accounts and interest rates referred to are registered. (Providers that have not made details available on their site and/or did not reply to requests from MoneySense have not been included.)

Available as: A savings account or investment account. Not available as a self-directed account through BMO InvestorLine or as a robo account through SmartFolio. 
Available online: Yes, through BMO online banking
Welcome offer: n/a
Savings rate on cash: View rates table.
Investment options: Cash, GICs and mutual funds 
Good to know: To open a BMO FHSA, you must first speak in-person or over the phone with a BMO investment professional.


Available as: A savings account or a self-directed account through CIBC Investor’s Edge. 
Available online: Yes, through CIBC Investor’s Edge. 
Welcome offer: n/a
Investment options: Cash, GICs, bonds, stocks, mutual funds and other products
Savings rate on cash: View rates table.
Good to know: You must deposit or invest a minimum of $25 to open the account.


Available as: A savings account.
Available online: Yes
Welcome offer: Introductory interest rate of 5% on deposits. Offer subject to change. 
Investment options: Cash only
Savings rate on cash: View rates table.


Available as: A savings account (not available in Quebec).
Available online: Yes
Welcome offer:
n/a
Investment options: Cash and GICs
Savings rate on cash: View rates table.
Good to know: To open an FHSA with EQ Bank, you must first open a Personal Account. Interest on money in the FHSA Savings Account is calculated daily and paid monthly into the linked Personal Account.


Available as: An investment account through a Fidelity investment dealer.
Available online: No
Welcome offer: n/a
Investment options: Mutual funds and ETFs
Savings rate on cash: n/a
Good to know: Fidelity’s FHSA is only available through financial advisors who offer client-name accounts, and through some eligible online trading platforms.


Available as: A savings account, term deposit or self-directed account through Qtrade Direct Investing.
Available online: Yes, for self-directed accounts through Qtrade.
Welcome offer: n/a
Investment options: Cash, term deposits of 1 to 5 years
Savings rate on cash: View rates table.
Good to know: Hubert Financial is the virtual division of Manitoba-based Access Credit Union. You must deposit a minimum of $1,000, and all deposits are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba. To open the plan, you must first speak to a Hubert Financial representative.


Available as: A managed account through the Justwealth robo-advisor platform
Available online: Yes
Welcome offer: n/a
Investment options: Over 70 portfolios to choose from that include ETFs from nine providers, such as Vanguard, iShares and Schwab.
Savings rate on cash: n/a
Good to know: Justwealth’s target-date accounts can help adjust the risk level of your FHSA investment as you get closer to cashing out your account to purchase your home.


Available as: A savings account, Meridian Wealth account or a self-directed account through Qtrade Direct Investing.
Available online: Yes, for self-directed accounts through QTrade. 
Welcome offer: Earn 5% on new deposits made it the account until May 31, 2024. Offer subject to change.
Investment options: Cash, mutual funds, stocks, bonds and ETFs
Savings rate on cash: View rates table.


Available as: A savings account or a self-directed account through National Bank Direct Brokerage.
Available online: Yes
Welcome offer: n/a
Investment options: Cash, securities
Savings rate on cash: View rates table.


Available as: A self-directed account.
Available online: Yes
Welcome offer: Get a $50 sign-up bonus when you open and fund an FHSA with at least $1,000 by March 4, 2024 (no promo code necessary). Plus, receive an additional $150 cash-back bonus with the code CASHBACK2024 if you put in $5,000 or more into your FHSA by March 31, 2024. Offers can be combined and are subject to change.
Investment options: Stocks, bonds and other securities
Savings rate on cash: n/a


Available as: A self-directed account through Questrade or a managed account through Questwealth Portfolios.
Available online: Yes
Welcome offer: n/a
Investment options: Securities through Questrade, and ETFs through Questwealth Portfolios
Savings rate on cash: n/a
Good to know: Customers must have at least $250 invested with Questrade or $1,000 invested with Questwealth Portfolios to open an FHSA. MoneySense named Questwealth Portfolios the best robo-advisor for frugal investors in 2023.


Available as: A self-directed account through RBC Direct Investing or a managed account through RBC InvestEase.
Available online: Yes
Welcome offer: n/a
Investment options: Stocks, options, bonds, mutual funds, ETFs and GICs through RBC Direct Investing, and ETFs through RBC InvestEase
Savings rate on cash: n/a
Good to know: MoneySense named RBC InvestEase the best robo-advisor for investors who like things simple in 2023.


Available as: A savings account.
Available online: Must use the Saven Financial app on iOS or Android OS.
Welcome offer: n/a
Investment options: Cash only
Savings rate on cash: View rates table.
Good to know: Saven is a division of First Ontario Credit Union. To open a Saven FHSA, you must first become a member and shareholder of First Ontario Credit Union by investing a minimum of $25. Existing members are refunded $25 when opening an FHSA.


Available as: A savings account through Scotiabank Savings Accelerator.
Available online: No
Welcome offer: n/a
Investment options: Cash only
Savings rate on cash: View rates table.


Available as: A investment account.
Available online: No
Welcome offer: n/a
Investment options: Mutual funds
Savings rate on cash: n/a
Good to know:  To open an account, new customers must first meet with an advisor either in person or via Zoom.


Available as: An investment account opened in a branch. Not yet available through TD Direct Investing and TD Automated Investing.
Available online: No
Welcome offer: n/a
Investment options: Any investment available in TD branches, including cash, mutual funds and GICs.
Savings rate on cash: View rates table.
Good to know: You must book an appointment with a TD representative to open the account


Available as: A self-directed account through Wealthsimple Trade or a managed account through Wealthsimple Invest.
Available online: Yes
Welcome offer: n/a
Investment options: ETFs through Wealthsimple Invest, and stocks and ETFs through Wealthsimple Trade
Savings rate on cash: n/a
Good to know: While Wealthsimple Invest makes use of iShares, Vanguard, BMO and State Street ETFs, it also has its own responsible and halal ETFs. If you choose the self-directed route with Wealthsimple Trade, you can buy and sell over 9,000 stocks and ETFs. All trades are commission-free, but not all stocks and ETFs are available.


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Compare FHSA savings rates on cash

A handful of FHSAs offer interest on your cash savings, and currently, some institutions are offering promotional interest rates for a limited time. The table below lists the interest rate you would receive by moving money into the account as of the date of publication; in some cases, it is a promotional rate. Offers are subject to change. Please check with the FHSA provider. 

FHSA providerSavings ratePromotion ends
BMO4%n/a
CIBC4%n/a
Desjardins3.80%n/a
EQ Bank2.75%n/a
Hubert Financial2.40%n/a
Meridian4.25% n/a
National Bank1.00% to 4.30%
(based on account balance)
n/a
Saven Financial4.05%n/a
Scotiabank0.25%n/a
TD0.05%n/a

MoneySense insight

The funds held within FHSAs at eligible financial institutions are protected within certain limits. Up to $100,000 in eligible deposits (meaning cash and guaranteed investment certificates) are covered through the Canada Deposit Insurance Corporation (CDIC). And up to a combined $1 million in investments (such as securities, cash and commodities) held in registered accounts is covered through the Canadian Investor Protection Fund (CIPF). The latter offers separate coverage for other accounts and registered savings plans.

—MoneySense editors

How to choose an FHSA

To pick the right FHSA, you should ask yourself the same questions you would when opening any other account, says Aaron Hector, a Certified Financial Planner and private wealth advisor at Calgary-based CWB Wealth. It’s important to consider the FHSA’s investment options and fees, as well as whether you’ll be “on your own” or receive financial advice from the company offering the account.

As more FHSAs become available, consider these factors before opening the account: 

  • The type of service offered: Do you prefer to speak with an investment advisor? Online platforms might not provide the level of service you need—ask what kind of support you can expect.
  • Your investment knowledge: Consider your level of comfort with investing. Experienced DIY investors could consider an FHSA at a self-directed online brokerage, so they can manage their own investments. New to investing? You may prefer to invest through a low-cost robo-advisor or to have an investment advisor manage your assets.
  • Trading and management fees: If you prefer to invest the money within your FHSA, take a close look at the fees for making trades or managing your portfolio. These costs can quickly add up. Your comfort with paying trading and management fees should also guide your decision on whether to invest in your FHSA through a brokerage, a discount brokerage or a robo-advisor. 
  • Interest rates: Some providers will offer competitive interest rates on funds held within your FHSA, as they do with tax-free savings accounts (TFSAs). As a savings account, an FHSA that pays interest may be a good fit for people who simply want to earn tax-free interest on their cash, without the risk of investing in securities. If that’s your strategy, go with the account offering the highest interest rate on your savings. 

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A guide to FHSAs in Canada

What is an FHSA?

Short for first home savings account, the FHSA is a type of registered account designed to help Canadians save to buy their first home, namely the down payment. A home’s minimum down payment depends on its purchase price, but many home owners aim for a down payment of 20% to avoid having to pay mortgage default insurance. You can contribute up to $8,000 per year into an FHSA, up to a lifetime limit of $40,000. 

The FHSA shares similarities with the RRSP and the TFSA, which are also available to Canadians. FHSA contributions are tax-deductible, like with an RRSP, and the money can be withdrawn tax-free, like with a TFSA—as long as the withdrawal is used for a down payment on a home. Funds put into an FHSA grow tax-free and are not subject to capital gains tax

What is an FHSA? Read the MoneySense Glossary definition.

FHSA start date

FHSAs became available on April 1, 2023, through an act of legislation passed in 2022. FHSAs can be issued by banks, credit unions, insurance companies and trust companies. Eventually, you should be able to find them wherever RRSPs and TFSAs are offered.

FHSA rules 

To open an FHSA, you must be a Canadian resident aged 18 or older. The FHSA can remain open for 15 years, or until the end of the year you turn 71, or until the end of the year following the year in which you make a qualifying home purchase—whichever comes first. 

You can contribute up to $8,000 per year toward your FHSA, up to a lifetime limit of $40,000. Unused contribution room, up to a maximum of $8,000, can be carried forward one year; this means that if you do not contribute anything in one year, you can contribute up to a maximum of $16,000 the following year. Unlike with a TFSA, however, FHSA contribution room only begins to accumulate once you’ve opened the account—it does not automatically begin when you turn 18 or apply retroactively to when you turned 18. 

Who can open an FHSA?

You can open an FHSA if you meet all of these qualifying criteria at the time of opening the account:

  • You are 18 years of age or older
  • You are a resident of Canada
  • You are a first-time home buyer

To be considered a first-time home buyer when opening an FHSA, you must not have lived in a qualifying home that you owned or jointly owned at any time in the calendar year before the account is opened, or at any time in the preceding four calendar years. And you must not have lived in a qualifying home that your spouse or common-law partner owned or jointly owned, at any time in the calendar year before the account is opened or at any time in the preceding four calendar years.

What investments can you hold in an FHSA? 

In Canada, there are limitations on the types of investments you can hold in registered accounts. The federal government has stated that the qualified investments for an FHSA are the same as those for a TFSA. This means you can hold the following assets in an FHSA: 

You cannot hold the following investments in your FHSA:

  • Land
  • Shares of private corporations
  • General partnership units

Read more: “What can I hold in an FHSA?”

What happens to the money in an FHSA if you don’t buy a home? 

If you decide not to use money in an FHSA for a home purchase—say, you decide that renting is better for you, you live with someone who already owns their place, or you inherit real estate—you can transfer the funds to an RRSP or a RRIF without being penalized or affecting your RRSP contribution room. In essence, the FHSA creates additional RRSP contribution room, up to $40,000, for all Canadians who meet the definition of a first-time home buyer.

However, keep in mind that an FHSA withdrawal used for a home purchase is not taxed, whereas funds withdrawn from an RRSP or a RRIF are taxed. 

Using an FHSA with other accounts and home-buying programs

When buying your first home, you can use the FHSA with the Home Buyers’ Plan (HBP), which allows you to borrow up to $60,000 from your RRSP. And when buying a home jointly with another person, you can combine your FHSA and HBP withdrawals for a sum of at least $80,000 from your FHSAs and $120,000 through the HBP, for a total of $200,000. That’s equal to a 20% down payment on a $1 million home.

These calculations do not account for potential tax-free investment growth in the FHSA, nor any money you may have saved in a TFSA, both of which would boost the total amounts available for a down payment. Note that HBP withdrawals are taxed if not repaid within 15 years.

To get a sense of how your investments might grow in an FHSA, use our compound interest calculator

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FHSAs: How they compare to RRSPs and TFSAs

Here’s a chart that shows the key differences and similarities between these three accounts.

FHSA RRSPTFSA
Primary purpose is saving for a down paymentYesNo, though you can make an HBP withdrawalDepends on the individual
Contributions are tax-deductibleYesYesNo
Annual contribution limit$8,000Based on your personal income, with a maximum of $31,560 in 2024$7,000 in 2024
Annual contribution limit is based on your incomeNoYesNo
Unused contribution room carries forwardYes, but you can carry forward a maximum of $8,000, for a total contribution of $16,000 in a given yearYesYes
Lifetime contribution limit (as of 2023)$40,000Based on your personal income$95,000 (for Canadians born in 1991 or earlier)
Account withdrawals are taxed Depends. Not taxed when used for a home purchase. Yes, unless used for a home purchase through the HBPNo

Are FHSA deposits insured? 

Yes. Effective April 1, 2023, the Canada Deposit Insurance Corporation (CDIC) will begin to offer separate coverage of $100,000 for eligible deposits held in an FHSA. Canadians’ deposits are now covered under nine different insured deposit categories at CDIC member institutions. Note, however, that while the CDIC covers GICs, it does not cover other types of investments.

Will the FHSA help first-time home buyers?

Many Canadians dream of home ownership. However, many factors have long made it a difficult goal to achieve, and that continues to be the case in 2024. These factors include high real estate prices, which require saving a substantial down payment and having a high income to qualify for a mortgage, as well as high rents, which make saving more difficult. (See how much income you need to afford a home in the Greater Toronto and Vancouver areas.)

The FHSA is one of many tools Canadians can use to save up for a home. Most first-time buyers will have to use a combination of tools and accounts, such as investing in a TFSA and withdrawing from an RRSP (through the HBP), in order to make it onto the property ladder in Canada.

Read more about FHSAs