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Self-directed First Home Savings Account (FHSA)
Buying your first home is a major milestone and a self-directed FHSA from TD Direct Investing can help in achieving it.
What is a First Home Savings Account (FHSA)?
An FHSA is an account designed to help first-time homebuyers save for a qualifying first home, tax-free, up to certain limits. Whether you're building or buying, grow your savings faster with tax-deductible1 contributions.
FHSA contributions and timelines
|
$40,000 |
The maximum lifetime contribution limit4. |
|---|---|
|
$8,000 |
The yearly tax-deductible limit. |
|
15 years or until age 71 or the year following a qualifying withdrawal |
The latest time this account can stay open, whichever comes first. |
|
1 year |
The carry-over period for the previous year's unused contribution to a maximum of $8,000. |
Comparing FHSA to RRSP and TFSA at TD Direct Investing
The FHSA is a registered plan that combines some features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA) to help you save for your first home.
FHSA |
RRSP |
TFSA |
|
|---|---|---|---|
How does it help me buy a house? |
You can use the funds in your FHSA to purchase your first home. |
You can withdraw RRSP funds (up to $60,000) towards your qualifying home purchase under the Home Buyers’ Plan (HBP)5. |
You can use funds from your TFSA to purchase a home. |
What is the maximum contribution for 2024? |
$8,000 (carry-forward rules apply)6. The total contribution room at any given time cannot exceed $16,000. |
18% of last year's income up to $31,5607(you can carry forward unused contribution room from previous years). |
$7,000 (unused contribution room can be carried forward and amounts withdrawn may be recontributed in a subsequent year). |
Can I carry forward unused contributions? |
Yes, only the previous year's unused contribution up to $8,000. |
Yes. |
Yes. |
What is the maximum lifetime contribution? |
$40,000 over 15 years.
|
N/A |
N/A |
What are the eligibility requirements for opening an account at TD Waterhouse? |
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|
|
Will I get a tax deduction on eligible contributions? |
Yes, except for transfers into your FHSA from your RRSP, although these transfers still reduce FHSA contribution room. |
Yes, except transfers into your RRSP from your FHSA. (these transfers do not reduce RRSP contribution room). |
No. |
Do I need to repay the funds I use to buy a home? |
No. |
Yes, within 15 years. |
No. |
Can I invest using Canadian and U.S. currency? |
No, Canadian only. |
Yes. |
Yes. |
Are there conditions for making a withdrawal to purchase a qualifying home? |
Yes, you must use the funds to buy or build your first home. See Canada Revenue Agency (CRA) website for complete details. |
Yes, under the HBP. See CRA website for complete details. |
N/A |
How can I fund my TD Direct Investing accounts? |
With cash contributions and in-cash transfers only8. |
With:
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With:
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