FHSA: First home savings account
An FHSA will allow prospective qualifying first-time home buyers to save up to $40,000 tax-free.
Annual contribution limit
Lifetime contribution limit
Lifespan of an FHSA
Set aside your future contributions and get $50
Open a pre-FHSA investment account1 with FÉRIQUE Investment Services, principal distributor of the FÉRIQUE Funds, or call the Advisory Services to contribute to an existing account (TFSA2 or non registered) to invest the amount of your future 2023 FHSA contribution and get a $503 gift!
As soon as the FÉRIQUE FHSA is offered, we will contact you to transfer the sums accumulated as contributions4 (for a maximum of $8,000).
Take advantage of the offer now and get $50
Important if you are already a client
You must call us or make an appointment to register and take advantage of this offer. You do not have to open a new account or contribute directly online.
Terms of the PRE-FHSA offer
Your money is not blocked
Your money does not have to be invested for a fixed term.
To take advantage of the pre-FHSA offer, you must make a minimum investment of $500 or set up a pre-authorized contributions (PAC) of $50 per month or more from your bank account. The first contribution must be made at the time of opening or within 15 days in the case of a PAC.
$50 as a gift
As part of this offer, we will give you a gift of $50 to invest in FÉRIQUE Funds and deposited directly into your FHSA account when it is opened.
Deadline to open the FHSA account
To get the $50 gift, your FHSA account must be opened by December 31, 2023.
- Setting up the Pre-FHSA does not constitute enrolment in the FHSA under the Income Tax Act. Enrolment in the FHSA will be possible as soon as it is available from Services d'investissement FÉRIQUE and only if you still meet the eligibility requirements at the time you sign the enrolment application. This enrolment will only take effect on the day you sign the application.
- If you are opening a TFSA or contributing to an existing TFSA, you must ensure that you have sufficient contribution room for the current year. When your FHSA is opened, the money will be withdrawn from the TFSA and you will not have the benefit of the new contribution room in your TFSA (generated by the withdrawal) until January of the following year.
- The $50 will be paid into the FHSA once the FHSA account has been opened and you have been validated as qualifying for the FHSA. Given the $50 offered, you will not be able to transfer more than $7,950 to your FHSA this year (including, if applicable, accumulated income and gains), so as not to exceed the annual contribution limit of $8,000.
- Accumulated amounts will be withdrawn to be invested in your FHSA as contributions on or after the date you sign the enrolment form. Accumulated income or gains may be taxable (or losses crystallized) in the case of a non-registered investment account.
FHSAs will soon be available
Bill C-32 was tabled on November 3, 2022, and FHSAs will be rolled out in 2023. It should be noted that the federal government could make changes to the plan by the time it is rolled out.
Basic rules to remember about FHSAs
- An individual and a resident of Canada
- Between the ages of 18 and 71
- A “first-time home buyer”: you (or your partner) did not own your principal place of residence in the year before the account was opened or at any time in the preceding four years.
Annual contribution limit
Lifetime contribution limit
The annual contribution limit will apply to contributions made during a calendar year (January 1 to December 31).
The unused contribution room can be carried forward, up to a maximum of $8,000.
For example, a person contributing $4,000 to an FHSA in 2023 will be allowed to contribute $12,000 in 2024.
Contributions made to an FHSA will be tax deductible and reduce taxable income for the current year.
Deductions do not have to be claimed in the year the contribution was made. They could be carried forward indefinitely and claimed in a later tax year.
Amounts withdrawn from an FHSA will be tax-free if used to purchase a qualifying home. In all other cases, amounts withdrawn from an FHSA will be taxable.
Withdrawals are not capped. The only limit to how much one can withdraw is the amount accrued in the account, based on investment returns.
Unlike the HBP, withdrawals from an FHSA don’t have to be repaid.
All FHSAs must be closed by December 31 of the year following the first qualifying withdrawal.
If money in the FHSA is not used to purchase an eligible first home, the account will cease to be an FHSA after December 31 of the year that the earliest of the following events occurs:
- the 15th anniversary of opening the first FHSA;
- the account holder turns 71 years of age.
The sums may:
- Transferred on a tax-deferred basis to a registered retirement savings fund (RRSP) or registered retirement income fund (RRIF) depending on the person’s age without affecting their RRSP contribution room, OR
- Withdrawn and taxed.
Invest in mutual funds
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Turnkey investment solutions comprised of several funds that are suitable for different types of investors.
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A responsible investing approach focused on the long term that underpins the entire line of FÉRIQUE Funds and Portfolios.
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