Help centre

Use the search bar to write keywords without giving out any of your personal information.

What do I need to know about the FHSA to buy my first home?

Here are the eligibility criteria for the Tax-Free First Home Savings Account (FHSA):

  • Be a Canadian resident and at least 18 years old.
  • Like the Home Buyer’s Plan (HBP), you must not have lived in a property you or your spouse owned in the year you open the account or in the four previous calendar years.
  • You must not have previously used the FHSA to buy a home.

Is there a maximum contribution limit?

  • Unlike a TFSA or RRSP, the carry forward of unused annual limit is capped at $8,000 less the previous year's contributions.
  • The lifetime contribution limit is $40,000 per person.

Good to know

  • These amounts will not be adjusted for the cost of living or inflation.
  • You can only use the FHSA to buy a property once.
  • When you withdraw funds from your FHSA for the purchase of a home, you must close all your FHSA accounts before the end of the year following the first withdrawal.

Is there a time limit to use your FHSA?

The FHSA can stay open for a maximum of 15 years*. After that, the funds will have to be used to buy a home or be transferred to an RRSP or RRIF. The funds can also be withdrawn, but they will be taxed.

*Your FHSA has to be close on December 31 of the year in which the earliest of these events occur:

  • The 15th anniversary of opening your first FHSA
  • You turn 71 years of age
  • The year following your first qualifying withdrawal from your FHSA
  • The year following your death

Can I carry forward a contribution to my FHSA?

You can carry forward up to $8,000 of unused FHSA contribution room to the following year.

Example

If you contribute only $6,000 the first year, you can contribute the unused $2,000 the following year. Since this amount is in addition to the annual contribution limit of $8,000, you can contribute up to $10,000 in the second year.

Please note that your maximum contribution allowance is a total of $40,000.

Related questions

Picto of two text bubbles

Chat with our virtual assistant

Ask a question for immediate answers to your questions, available 24/7

 

 

Ask a question

Back
Terms of use
National Bank’s virtual assistant

When using our Virtual Assistant Service (the "Chatbot"), you accept these Terms of Use, which are subject to change without notice. Furthermore, you agree to consult these Terms of Use from time to time and acknowledge that your continuing use of the Chatbot means that you have accepted any changes that may have been made. Your continued use of the Chatbot means that you’ve read, understand and agree to these Terms of Use, the Terms of Use for our website, our Online transaction services, and to our privacy policy. You also understand any other agreements that you have with us will continue to apply when you use the Chatbot.

1. Our Services and your responsibilities

The Chatbot is an automated service which is integrated into our online banking platform.

The Chatbot is preprogrammed to answer general questions concerning the use of our online banking platform solely for informational purposes. The Chatbot is not able to answer questions on personal monetary transactions or products you hold with us.

By using the Chatbot, you understand and agree that:

  • The Chatbot does not provide financial advice or financial planning services.
  • The Chatbot does not conduct any banking transactions.
  • The Chatbot may not be able to answer all your questions. Therefore, it may not be able to provide you with the information you require. You must judge whether the answer provided responds to your question accurately. In the case of uncertainty, a customer service representative would be happy to help you. You can call us toll free at 1-888-483-5628 or 514-394-5555.
  • The Chatbot is not a complaint service. You cannot use the Chatbot to file complaints. If you have any complaints, you can contact us at the number indicated above.
  • We monitor, record and store the discussion that you have with the Chatbot to improve our interactions with our clients.
  • You will not provide the Chatbot with any confidential, personal, or private information. For example, you will not provide the Chatbot with your login information, PIN or other personal banking information.

2. Limitation of Liability

You acknowledge that we won’t be liable for any losses or damages that you may suffer as a result of your use of the Chatbot, including if the Chatbot is unavailable for any reason.

We cannot guarantee that the results obtained via the Chatbot will be accurate and reliable and that the answers provided will meet your expectations.

We will not be held liable for damages you incur as a result of:

  • Any delay, error, interruption or omission on our part or any other event beyond our control.
  • Any deficiency or technical error or any unavailability of our systems and wireless networks.
  • Your failure to meet any of your obligations.
  • Any amendment to or suspension, refusal or blockage of the Chatbot.
  • Any decision or measure you take in response to information and data obtained via the Chatbot.
  • Any other damages you may incur that are not caused by negligence on our part.

3. Language

You have requested that these Terms of Use, and related documents be drawn up in English.

4. Governing Law

These Terms of Use are governed and must be interpreted in accordance with the laws in force in the province or territory where you reside. If you reside outside Canada, the laws in force and the courts of competent jurisdiction are those of the province of Quebec.

Virtual assistant