What is a First Home Savings Account?

A First Home Savings Account, also known as an FHSA, is a new type of investment announced by the federal government in 2022. An FHSA is designed to help Canadians, age 18 or older, save for their first home by offering a variety of tax advantages. Similar to an RRSP, contributions made to an FHSA are tax deductible, while like a TFSA, any income made on an FHSA investment is tax-free.

Benefits of an FHSA

  • Contributions can reduce your taxable income
  • Any investment income made is non-taxable while in the account
  • Tax-free redemptions when drawing from your FHSA to purchase your first home
  • Any left-over funds in your FHSA that are not used to purchase a qualifying home can be transferred to your RRSP/RRIF tax-free
  • You can use an FHSA in conjunction with the Home Buyers’ Plan (HBP)

Mainstreet First Home Savings Account

Buying soon?

Save and withdraw for your first home purchase at anytime with a Mainstreet FHSA Savings Account.

Looking ahead

Lock in and save more with a Mainstreet FHSA Term Deposit

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