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NEW! First Home Savings Account (FHSA)

Save to help achieve your dream of home ownership.

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What is an FHSA?

The NEW First Home Savings Account (FHSA) is a registered savings plan designed to help first-time homebuyers save for their first home, tax-free. Contributions to an FHSA plan are tax-deductible, like an RRSP. Withdrawals for a qualifying home purchase are non-taxable, like a Tax-Free Savings Account (TFSA).

Why open an FHSA?

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Save for your first home

Opening an FHSA is a great first step towards home ownership. Whether you contribute a lump sum annually or set up monthly contributions, an FHSA is an effective strategy to help you save for the purchase of a home.

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Reduce your taxable income

The money you add to your FHSA helps lower your taxable income in the year of contribution. You can also carry forward unused contribution room in your FHSA for the previous calendar year as long as your FHSA was opened in the previous calendar year, or earlier.

For instance, if you opened your FHSA in 2023 and contributed $2,000 that year, in 2024 you can contribute $14,000 ($8,000 for the current year + $6,000 of unused carryforward from 2023). However, if you opened a FHSA in 2023 but did not contribute anything until 2025, you can only contribute $16,000 ($8,000 for 2025 and $8,000 for 2024).

Pay less tax while growing your resources to help buy your first home.

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Grow your savings, tax-free

Pay no tax on withdrawals when you use your FHSA towards the purchase of a qualifying home.

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Who is eligible?

  • You are a Canadian resident who is between 18 and 71 years of age or older AND
  • You have not owned a qualifying home in the current or previous 4 calendar years AND
  • Your spouse or common-law partner does not own a qualifying home that you lived in as your principal residence in any part of the calendar year before the account is opened or the preceding 4 years.
  • To open an FHSA with Northern Birch Credit Union, you must be a resident of Ontario. Please inquire for options if you are not a resident of Ontario.
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How much can I contribute?

The annual contribution limit is $8,000 starting the year a plan is opened, up to a lifetime maximum of $40,000.

Your contributions are tax-deductible from your income in either the current year or a future year. You can also carry forward unused contribution room in your FHSA for the previous calendar year as long as your FHSA was opened in the previous calendar year, or earlier. The maximum carry-forward amount is $8,000 to an annual contribution maximum of $16,000.

Diverse Investment Options

The FHSA has a variety of investment options. You can deposit into a savings account or investments of your choice, such as a term deposit or mutual fund.

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GICs (Guaranteed Investment Certificates) or Term Deposits are low risk investments. A GIC guarantees 100% of your initial investment and increases your investment at a fixed rate. A GIC is ideal for low-risk investors who want to grow their money without worrying about losses from market shifts.

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Mutual Funds*

Investing in Mutual Funds gives you the benefit of diversity and affordable professional asset management. Northern Birch partners with Aviso Wealth (formerly Credit Asset Management Inc.) to help you reach your financial goals.

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Online Brokerage Accounts*

Through Qtrade Direct Investing® members of Northern Birch have access to buy and sell stocks, bonds, ETFs and Mutual Funds.

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Open Your FHSA Today


Frequently Asked Questions

Yes, you can carry forward your unused contribution room to the following year, to a maximum of $8,000. If you opened your FHSA in the prior year and did not contribute the full $8,000 that year, the unused annual contribution amount can be carried forward for one year. For example, if you contributed only $2,000 one year, you could carry forward $6,000 into the following year. The most you can contribute in any one year is $16,000 ($8,000 annual limit + $8,000 carryforward).

Yes! You can transfer money directly from an RRSP (but not a TFSA or RRIF) if you have the FHSA contribution room. You can also directly transfer money out from an FHSA to an RRSP or an RRIF (but not a TFSA), regardless of your RRSP contribution room. Note that transfers are not tax-deductible, and they don’t affect RRSP contribution room.

Withdrawals for a qualifying first-home purchase can be made tax-free. If you need to withdraw the money for other purposes, it would be considered taxable income and withholding taxes will apply.

Your FHSA must be closed 15 years after opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal – whichever comes first.

*Interest is calculated daily, paid monthly on deposits into a Northern Birch Credit Union FHSA variable savings account. Rates and offer are subject to change without notice. Account holder is responsible for determining their maximum allowable annual FHSA contributions. Consult CRA or your tax advisor for eligibility and tax implications. 

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Their values change frequently and past performance may not be repeated. Credential Asset Management Inc. and Northwest & Ethical Investments L.P are both wholly owned subsidiaries of Aviso Wealth Inc.


Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade, Qtrade Direct Investing, and Write your own future are trade names and/or trademarks of Aviso Wealth Inc.