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Self-directed First Home Savings Account (FHSA)
A self-directed FHSA from TD Easy Trade can make saving for a down payment easy.
What is a First Home Savings Account (FHSA)?
A FHSA combines some of features of an RRSP and TFSA into a single account. Contributions are typically tax-deductible and you won’t pay tax on any qualifying withdrawals.1
How does an FHSA work?
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$40,000 |
The maximum lifetime contribution limit 4 . |
|---|---|
|
$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 $8000. |
Comparing FHSA to RRSP and TFSA at TD Easy Trade
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$7,000 (unused contribution room can be carried forward and amounts withdrawn may be recontributed in a subsequent year).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 Easy Trade accounts? |
With cash contributions and in-cash transfers only8. |
With:
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With:
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Got questions? We have answers.
In an FHSA, you can hold a variety of investments similar to those allowed in other registered accounts. These include:
- Stocks
- TD Exchange-traded funds (ETFs)
Yes, you are permitted to hold more than one FHSA. However, the total amount contributed to all your FHSAs cannot exceed the annual limit of $8,000 (plus any carry forward) and the lifetime limit of $40,000. Note, your maximum participation period begins at the time that you open your first FHSA.
For more information, please visit the Canada Revenue Agency (CRA) website.
Yes, if you and someone else qualify, you have the ability to combine individual FHSA savings to purchase a qualifying home.
You can submit your transfer request in one of these two ways:
- Contact TD Easy Trade
- Complete the applicable FHSA transfer form: Visit a TD Canada Trust branch with the completed form.
Here are the applicable forms for different types of transfers:
Transfer from an FHSA to another FHSA, RRSP or RRIF on Breakdown of Marriage or Common-law Partnership
Transfer from your RRSP to your FHSA
Transfer from your FHSA to your FHSA, RRSP or RRIF
Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder:
Transfer from an FHSA to an FHSA, RRSP, or RRIF after the Death of the Holder:
Designate an Excess FHSA Amount as a Withdrawal from your FHSA or as a Transfer to your RRSP or RRIF:
For detailed instructions and more information, please visit the CRA website or contact your local TD branch.
Yes, you can. With the HBP, you're essentially borrowing money from your RRSP to help buy or build your first home; however, there are repayment requirements to consider.
For both, you must qualify as a first-time home buyer to withdraw the money and meet other conditions. If you and your spouse both qualify, you can access funds from both HBPs and FHSAs.
You can submit your withdrawal request in one of these two ways:
- Contact TD Easy Trade
- Complete the applicable FHSA withdrawal form: Visit a TD Canada Trust branch with the completed form.
Types of withdrawals:
- Non-qualifying withdrawal:
- Call TD Direct Investing to initiate the withdrawal.
- Qualifying withdrawal:
- This type of withdrawal is for purchasing a qualifying home. You will need to fill out the following form:
- RC725 (English)
- RC725 (French)
- Designated Excess FHSA Amount:
- If you need to designate an excess amount as a withdrawal or transfer it to your RRSP or RRIF, use the following form:
- RC727 (English)
- RC727 (French)
For detailed instructions and more information, please visit the Canada Revenue Agency (CRA) website or contact your local TD branch.
Currently, you can only make these in Canadian cash. There are no in-kind contributions, transfers, or withdrawals.
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