FHSA | CIBC Imperial Investor Service

What is an FHSA?

The First Home Savings Account is a new type of registered plan designed to help you save for your first home, tax-free. You can contribute up to $8,000 per year and your contributions will be tax-deductible, like an RRSP.¹ You won’t pay taxes on investment earnings in the plan. When you’re ready, eligible withdrawals are also tax-free² when used towards the purchase of a qualifying home.

Benefits of an Imperial Investor Service FHSA

Get tax benefits

Contributions to your FHSA may help lower your taxable income. Your savings also grow tax-free.

Advice

With CIBC Imperial Investor Service, you're not investing by yourself. A dedicated CIBC Advisor will work with you to design a personalized investment plan that's right for you.

Access

You have the flexibility to monitor your portfolio online whenever and wherever you want.

Choice

Through CIBC Imperial Investor Service, you can invest in over 100 different mutual funds from CIBC Asset Management Inc., Guaranteed Investment Certificates (GICs), and Structured notes.

Research tools

We offer free, timely and relevant research tools through our online service to help you make smarter investment decisions.

Withdraw from both the RRSP Home Buyers’ Plan and FHSA

If you have any funds left in your FHSA, you can transfer the funds tax free to your RRSP.

Who is eligible to open an FHSA?

How do I qualify to open an FHSA?

You're a Canadian resident and you've reached the age of majority in your province or territory³ Opens in a dialog.
You’re an eligible first-time homebuyer meaning you haven’t lived in a qualifying home as your principal residence (or what would be a qualifying home if it was located in Canada) that was owned by you or your spouse/common law partner in the current or past 4 calendar years.¹

How can I withdraw my FHSA savings tax-free?

You’re a Canadian resident from the time of the withdrawal until the home is acquired
You did not live in a home that you owned or jointly owned at any time during the 4 previous calendar years and during the period of the current year ending 31 days before the withdrawal is made
You have a written agreement to buy or build a qualifying home with the acquisition or construction completion date before October 1 of the year following the date of the withdrawal
You intend to occupy the qualifying home as your principal residence within 1 year of buying or building it
You have not acquired the qualifying home more than 30 days before making the withdrawal

How much can I contribute and withdraw from the FHSA?

Here's an overview of the rules for contributing to and withdrawing funds from, your FHSA as outlined by the Government of Canada Opens in a new window.

$8,000 annual contribution limit

Your annual limit includes any transfers you make from an RRSP. You can carry forward unused portions of your annual contribution limit in any year up to a maximum of $8,000.⁴

$40,000 lifetime contribution limit

You must close your FHSA within 15 years of opening the account, or by the time you turn 71 years old, whichever is sooner. You may transfer funds not used towards the purchase of a qualifying home to your RRSP, RRIF or make a taxable withdrawal.⁵

No limit for qualifying withdrawals

If you qualify to use your savings towards the purchase of a qualifying home, you can withdraw from your FHSA, tax-free.

How does the FHSA compare to other registered plans?

The FHSA combines features of other registered plans like the RRSP and TFSA. These features can help you save money to purchase your first home sooner.

FHSA
Home-ownership goal
Tax deduction for contribution (except for transfers from an RRSP)
Tax-free withdrawals for qualifying first home purchase
Withdrawals must be used towards the purchase of a qualifying home
Each year you can contribute up to $8,000, plus up to $8,000 of carry forward of unused contribution room. The lifetime contribution limit is $40,000.

RRSP	TFSA
Long-term goal, e.g., retirement	Short-term and long-term goals
Tax deduction for contribution	No tax deduction for contribution
Withdrawals are taxable income	Withdrawals are tax-free
Withdrawals made when you're retired may be taxed at a lower rate	Withdrawals can be re-contributed in a later year
Each year you can contribute up to your RRSP maximum contribution limit for the year; unused contribution room can be carried forward.	Each year, you can contribute up to the TFSA dollar limit for the year ($6,500 in 2023); plus any unused contribution room that has been carried forward.

Show registered plan comparison

FIRST HOME SAVINGS ACCOUNT (FHSA)

What is an FHSA?

Benefits of an Imperial Investor Service FHSA

Get tax benefits

Advice

Access

Choice

Research tools

Withdraw from both the RRSP Home Buyers’ Plan and FHSA

Who is eligible to open an FHSA?

How do I qualify to open an FHSA?

How can I withdraw my FHSA savings tax-free?

How much can I contribute and withdraw from the FHSA?

$8,000 annual contribution limit

$40,000 lifetime contribution limit

No limit for qualifying withdrawals

How does the FHSA compare to other registered plans?