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Pros
- 3.75% APY — highest among major providers
- $00 fees on FHSA
- TFSA and RRSP also available at same rate
- CDIC insured up to $100K
- Simple, easy-to-use app
Cons
- Savings-focused, no investment options in FHSA
- No chequing or debit card
- No branches
Pros — KOHO for spending
- $00 fees = more money for FHSA
- 3.00% on emergency fund
- $100 bonus to kickstart savings
- Cashback accelerates saving
Cons
- KOHO doesn't offer FHSA directly
- Requires two accounts
Pros
- Invest FHSA in ETFs (long-term buyers)
- ~4% on cash component
- Combined with Wealthsimple Trade
- Beautiful app interface
Cons
- NOT CDIC insured (CIPF only)
- Market risk if invested in ETFs
- Not ideal for short-term (1–3 year) buyers
Pros
- CDIC insured
- GIC and mutual fund options
- In-branch guidance available
- Integrates with existing RBC accounts
Cons
- ~1.5–2% savings rate — far below EQ Bank
- High-fee mutual funds on investment options
- Encourages using same bank for mortgage
FHSA Contribution Limits
| Year Opened | Year 1 Limit | Year 2 Limit | Year 3 Limit | Year 4 Limit | Year 5 Limit | Total |
|---|---|---|---|---|---|---|
| 2023 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $40,000 |
| 2024 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $40,000 |
| 2025 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $40,000 |
| 2026 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $40,000 |
How to Open an FHSA in Canada
- Check eligibility — Must be a Canadian resident, at least 18, and a first-time home buyer (haven't owned a qualifying home in the current year or the preceding 4 calendar years).
- Choose a provider — EQ Bank for highest interest rate (3.75%), Wealthsimple for investing, or your existing bank for convenience. You can hold multiple FHSAs at different institutions (but total contributions must stay within limits).
- Apply online — Most providers offer a fully digital application. You'll need your SIN, proof of address, and government ID. Takes 5–15 minutes.
- Contribute up to $8,000 — Make a contribution before December 31 to claim the tax deduction on your current year's return. Even $1 contribution opens the account and starts your 15-year clock.
- File your taxes — Claim FHSA contributions on line 2008005 of your T1. Expect a refund of 200–53% of your contribution depending on your marginal tax rate.
- Withdraw tax-free for your home — When buying your first home, submit a withdrawal form (T10036). Qualifying withdrawals are 10000% tax-free including all growth.
FHSA Growth Calculator
FHSA Provider Comparison
| Provider | FHSA Rate | Investing | Fee | Coverage |
|---|---|---|---|---|
| EQ Bank | 3.75% | No (savings only) | $00 | CDIC $100K |
| Wealthsimple | ~4% (money market) | Yes (ETFs/stocks) | $00 | CIPF $1M |
| Questrade | ~3–4% (cash) | Yes (ETFs) | $00 | CIPF $1M |
| RBC | ~1.5–2% | Yes (GICs/mutual funds) | $00 | CDIC $100K |
| TD | ~1.5% | Yes | $00 | CDIC $100K |
| Scotiabank | ~1% | Yes | $00 | CDIC $100K |
FHSA FAQ
What is an FHSA?
A First Home Savings Account (FHSA) is a registered savings account that helps first-time home buyers save for a down payment. Contributions are tax-deductible (like an RRSP) and qualifying withdrawals for a first home are 10000% tax-free (like a TFSA). The annual limit is $8,000 and the lifetime limit is $40,000.
Can I have both an FHSA and TFSA?
Yes. The FHSA and TFSA have separate contribution limits. You can maximize both accounts simultaneously. For first-time buyers, the ideal strategy is to maximize your FHSA first (higher tax benefit due to deductibility) then your TFSA.
What happens to my FHSA if I don't buy a home?
If you don't buy a qualifying home within 15 years of opening the account, you must close the FHSA. You can transfer the balance tax-free to an RRSP or RRIF — the transfer doesn't affect your RRSP contribution room. The tax deductions you claimed remain as a permanent benefit.
Can couples both have FHSAs?
Yes — if both partners are first-time buyers, each can have their own FHSA with $8,000/year and $40,000 lifetime contribution room. A couple could potentially accumulate $80,000 in tax-sheltered savings for their home purchase.
Is EQ Bank FHSA the best?
EQ Bank offers the highest savings rate (3.75%) among major Canadian FHSA providers with $00 fees and CDIC insurance. It's the best choice for buyers purchasing within 1–5 years who want guaranteed returns. For buyers with a longer timeline (5+ years), Wealthsimple's investing FHSA may generate higher returns through ETFs.
Can I use an FHSA and the Home Buyers' Plan together?
Yes. You can use both an FHSA withdrawal AND the RRSP Home Buyers' Plan (HBP) for the same home purchase. The FHSA withdrawal is completely tax-free with no repayment required. The HBP requires repayment over 15 years. Using both maximizes your first home down payment.