This site uses third party services that need your consent.
We’ve updated our website! You’ll notice a fresh new look as we’ve made improvements to enhance your experience. As we complete the transition, some areas may continue to settle in, but everything you’re looking for is still here.
GIC Specials
3.60% 18-month
3.65% 30-month
Kickstart your next short-term savings goal.
Offers end May 31, 2026.
A First Home Savings Account (FHSA) is a registered account designed to help first-time home buyers save for a down payment. Contributions are tax-deductible, similar to an RRSP, and withdrawals are tax-free when used to purchase a qualifying first home.
An FHSA combines the tax advantages of an RRSP and a TFSA to help you grow your savings for your first home.
Most Canadian residents between ages 18 and 71 who qualify as first-time home buyers can open an FHSA.
FHSA contributions are tax-deductible, similar to an RRSP. Investment growth and withdrawals are tax-free when used to purchase a qualifying first home.
Annual contribution limit is $8,000 and $40,000 lifetime maximum. Unused room can carry forward, up to $16,000 available at any time. The account must be used within 15 years of opening or by age 71.
At Mainstreet, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
Who can open an FHSA?
You can open an FHSA if you’re a first-time home buyer and a Canadian resident between the ages of 18 and 71. To qualify, you must not have lived in a home owned by you or your spouse in the previous four years.
An FHSA is intended for the purchase of your primary residence and cannot be used for buying an investment property.
An FHSA can hold savings accounts, GICs, stocks*, bonds*, ETFs*, mutual funds*, or self-directed investments**. Depending on your approach, your savings may earn interest or generate investment growth while you prepare for your home purchase.
Advisor Managed Investing
Advisor-Managed Investing offers guidance and a plan built around your goals. A Mainstreet and Aviso Wealth advisor helps you choose and manage investments and adjusts your approach as your needs change.
Qtrade Direct Investing®
Qtrade Direct Investing gives you the flexibility to manage your savings and investments independently, using tools and resources to stay in control.
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. 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.
**Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc.
A First Home Savings Account (FHSA) and a Tax-Free Savings Account (TFSA) are both registered accounts that offer tax advantages. The key difference is how they’re used and how contributions and withdrawals are treated.
|
FHSA |
TFSA |
|
|---|---|---|
|
Purpose |
Saving for a first home. |
Flexible savings for short- or long-term goals. |
|
Eligibility |
First-time home buyers ages 18–71. |
Canadian residents age 18+. |
|
Contribution limit |
$8,000 annually $40,000 lifetime maximum. |
Set annually by the government ($7,000 for 2026). |
|
Tax treatment on contributions |
Contributions are tax-deductible. |
Contributions are not tax-deductible. |
|
Withdrawal rules |
Tax-free when used to purchase a qualifying first home. |
Withdrawals are tax-free for any purpose. |
|
Timeline |
Must be used within 15 years or by age 71. |
No time limit. |
|
Withdrawal requirements |
Funds must be used to purchase a qualifying first home. If not used, they can be transferred to an RRSP without affecting RRSP contribution room. |
None. |
|
FHSA |
TFSA |
|---|---|
|
Purpose |
|
|
Saving for a first home. Flexible savings for short- or long-term goals. |
|
|
Eligibility |
|
|
First-time home buyers ages 18–71. Canadian residents age 18+. |
|
|
Contribution limit |
|
|
$8,000 annually $40,000 lifetime maximum. Set annually by the government ($7,000 for 2026). |
|
|
Tax treatment on contributions |
|
|
Contributions are tax-deductible. Contributions are not tax-deductible. |
|
|
Withdrawal rules |
|
|
Tax-free when used to purchase a qualifying first home. Withdrawals are tax-free for any purpose. |
|
|
Timeline |
|
|
Must be used within 15 years or by age 71. No time limit. |
|
|
Withdrawal requirements |
|
|
Funds must be used to purchase a qualifying first home. If not used, they can be transferred to an RRSP without affecting RRSP contribution room. None. |
|
An FHSA can help you grow your savings for your first home with tax advantages designed to accelerate your progress.
An FHSA has elements similar to an RRSP and a TFSA. Like an RRSP, contributions you make to your FHSA reduce your taxable income in the year they are made. Like a TFSA, withdrawals from your FHSA are not subject to any tax, provided they are used for the purchase of your first home.
Contribution room is the amount available to you to add money or securities up to a specific value. Each year you can contribute up to $8,000 towards your FHSA. Any unused contribution room can be used the next year. At no point in time can you have more than $16,000 in FHSA contribution room.
You can open an FHSA if you’re a first-time home buyer and a Canadian resident between the ages of 18 and 71. To qualify, you must not have lived in a home owned by you or your spouse in the previous four years.
An FHSA is intended for the purchase of your primary residence and cannot be used for buying an investment property.
If you don’t buy a home, you can transfer the money to your RRSP without affecting your RRSP contribution room. Alternatively you can make a taxable withdrawal (similar to an RRSP withdrawal) from your FHSA.
