First Home Savings Account

First Home Savings Account (FHSA)

A new way to save for a first home

Get an immediate tax break

Any contributions you make reduce your taxable income, so you pay less tax whenever you save.

Tax-free growth and withdrawals

All investment growth is tax free, including interest, dividends and capital gains, plus you pay no tax when you make a qualifying withdrawal.

Contribute up to $40,000

The portfolios are well diversified across regions and asset classes to grow your investment.

What is an FHSA?

A First Home Savings Account is a registered savings plan that allows Canadians to save for their first home much faster, with some of the advantages of both an RRSP and a TFSA. Your contributions reduce your taxable income, your savings grow tax free, and all qualifying withdrawals are tax free. 

How an FHSA help you save
for your first home faster


  • Pay less income tax when you make contributions because your taxable income will be reduced.
  • None of your investment growth will be taxed, so your savings grow faster, enjoying more benefits from compounding interest.
  • Contribute up to $8,000 per year for a maximum of $40,000 in contributions. Unused contribution room can be carried over to the following year.
  • You can withdraw from your FHSA savings with the Home Buyers’ Plan (which allows you to use up to $35,000 of your RRSP savings) so you can have an even bigger down payment to buy your first home.
  • When it comes time to make a qualifying withdrawal, all the money — your contributions and investment growth — is completely tax free.
  • If you end up not using any FHSA money, it can be transferred tax free to an RRSP or RRIF.
  • An FHSA can hold the same range of investments as a TFSA, and RRSPs.

Client Services team

Do you need help setting up a client’s FHSA or deciding on which investments to hold within it? We can help.

Email us at or phone us at 1-800-387-0614.

Frequently asked questions


  • What is a First Home Savings Account (FHSA)?

    A First Home Savings Account (FHSA) is a registered plan that allows prospective first-time Canadian home buyers to save for the purchase of their first home, tax free.

  • How do I open an FHSA with Mackenzie?

    Mackenzie has been accepting FHSA purchases in nominee accounts since mid-June 2023. Please reach out to your dealership to open a nominee FHSA investing in Mackenzie products.

    Mackenzie is scheduled to have Mackenzie-administered FHSA accounts (client name accounts) available from November 2023.

    Please complete the Mackenzie First Home Savings Account Application to open a new plan and the Transfer Authorization for Registered & Non-Registered Accounts to transfer an existing FHSA (or RSP) from another provider.

  • Who is eligible to open an FHSA?

    To be eligible, an individual must be:

    • A resident of Canada.
    • A first-time home buyer.
    • Between the ages of 18 (or the age of majority in the province/territory where they live) and 71, with a valid social insurance number (SIN).
  • Who is considered a first-time home buyer?

    For the purposes of opening an FHSA, an individual will be considered a first-time home buyer if they did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home located in Canada) as their principal place of residence that either:

    • They owned or jointly owned; or
    • Their spouse or CLP owned or jointly owned (at the time the account is opened).
  • What is considered a qualifying home?

    For the purposes of the FHSA, a qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. The following would qualify:

    • Single-family homes.
    • Semi-detached homes.
    • Townhouses.
    • Mobile homes.
    • Condominium units.
    • Apartments in duplexes, triplexes, fourplexes or apartment buildings.
    • A share in a co-operative housing corporation that entitles someone to own, and gives them an equity interest in, a housing unit.
  • What investment options are available at Mackenzie for an FHSA?

    Nominee accounts: All Mackenzie funds and series are eligible except for the Mackenzie Northleaf Private Infrastructure Fund and the Mackenzie Northleaf Global Private Equity Fund.

    Mackenzie-administered accounts (client name accounts): All Mackenzie mutual funds and series are eligible except for the Mackenzie Northleaf Private Infrastructure Fund, Mackenzie Northleaf Global Private Equity Fund and all US dollar funds.

    Mackenzie ETFs require brokerage accounts that can trade and settle ETF units. Mackenzie ETFs are not eligible to be held in Mackenzie-administered accounts (client name accounts).

    Please check Mackenzie's prospectus to see if a fund of your choice is a qualified investment in a registered plan.

  • Can parents open an FHSA for their children who are under the age of 18?

    To open an FHSA, the account holder must be at least 18 years old (or the age of majority in the province/territory where they live) and meet the other eligibility requirements. Parents cannot open an FHSA on behalf of their children even if they are over age 18.

  • Are spousal FHSA plans available or can an FHSA be held jointly?

    Spousal FHSA plans are not available, and the FHSA cannot be held jointly. Married individuals can open separate FHSA accounts and use both towards their first home purchase. Individuals may also gift funds to their spouse who then contributes to the FHSA. While attribution typically applies on gifts to spouses, there is an exception for FHSAs, which will not attribute any income or capital gains back to the giftor spouse. Also, upon withdrawal, only the account holder is required to report the income and pay tax (if applicable). No portion of any withdrawal is subject to attribution.

  • Are new immigrants eligible to open a FHSA?

    Please see the response to Question 3.

  • Are non-residents eligible to open an FHSA?

    No, only Canadian residents are eligible to open an FHSA.

  • What happens if you become a non-resident after opening an FHSA?

    Non-residents can continue to participate in an FHSA but they cannot make a qualifying withdrawal to build or buy a qualifying home as a non-resident.

  • Are US citizens residing in Canada eligible to open an FHSA?

    If the eligibility criteria are met, an FHSA can be opened. To be eligible, an individual must:

    • Be a resident of Canada.
    • Have a valid social insurance number (SIN).
    • Meet other eligibility requirements, as outlined in question 3.
  • Are US citizens residing in Canada required to pay taxes on FHSA withdrawals in the US?

    Under the US tax rules, US citizens are generally taxed on their income and gains from other countries. Income and gains earned in Canadian registered accounts are taxed in the US, except for income and gains earned from RRSPs and RRIFs. Please consult your US tax advisor for tax-related questions on the FHSA.



  • What is the carryforward limit in an FHSA?

    For a particular year, it is the least of

    • $8,000 (or)
    • The amount of your FHSA participation room for the prior year(s) that exceeds all contributions and transfers made to your FHSAs in the prior year(s) (or)
    • $0 if your FHSA was opened in the current year (unlike with TFSAs, the contribution room starts to accumulate upon opening the plan).
  • What is the maximum contribution if someone has FHSA carryforwards from previous years?

    The maximum carryforward to the current year is equal to any unused FHSA room at the end of the previous year up to a maximum of $8,000. For example, John opened an FHSA in 2023 and contributed $5,000. In 2024, he can contribute up to $11,000, which includes the remaining $3,000 from 2023, plus the 2024 contribution limit of $8,000. 


Home Buyers Plan and FHSA


  • What are the penalties for over-contributions?

    The CRA enforces penalties on over-contributions. Excess contributions are subject to a 1% penalty and are assessed monthly. The penalty tax applies as soon as the FHSA contributions exceed the FHSA contribution room. Account holders must withdraw the excess contribution to stop the penalty tax from accumulating. Otherwise, the penalty will continue to apply until new room is generated.


  • What happens if the account holder never uses funds in their FHSA to purchase a home?

    The following two options are available:

    • Transfer the money from the FHSA to an RRSP without using any available contribution room or without causing any over-contribution to the RRSP account.
    • Withdraw (cash withdrawal or transfer to a TFSA or a non-registered account) the funds from the FHSA. However, the withdrawal will be subject to tax. 
  • What is the maximum participation period in the FHSA?

    The maximum participation period begins when the account is opened, and the period ends on December 31 of the year in which the earliest of the following occurs:

    • The 15th anniversary of opening the first FHSA.
    • The account holder turns 71 years.
    • The year following the first qualifying withdrawal from the FHSA.

Resources and forms


A new way to save for a first home

A First Home Savings Account (FHSA) is a registered plan that allows first time Canadian home buyers, to save for their first home, tax-free.


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First Home Savings Account (FHSA)

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