Easily save for the down payment of your first home with an FHSA!
Your earnings are tax-free.
Your contributions are tax deductible.
You'll pay no monthly fees.
You’ll enjoy a competitive rate.
Getting started is easy! Simply open a No-Fee Chequing Account then open your FHSA.
Already an Innovation member? Log into online banking and select > Accounts > Open Account > Registered Accounts > FHSA Savings Account
Get your approval in one business day!
What is an FHSA?
A first home savings account (FHSA) is a registered account designed to help first-time homebuyers save for a down payment faster. It allows you to combine smart savings with built-in tax advantages to make homeownership more achievable.
Your savings can grow tax-free, and you can benefit from tax deductible contributions that may lower your taxable income. When you’re ready to buy and make a qualifying withdrawal, you can use your funds for your first home without paying tax on the withdrawal.
FHSA Breakdown by the Numbers
Now that we’ve introduced the basics, let’s look at the key numbers that show what a first home savings account can do for your down payment savings plan:
$8,000 — The annual contribution limit you can add each year
$40,000 — The lifetime contribution limit across the life of your FHSA
15 years — How long you can keep an FHSA open before it must be closed
18 or 19 — The minimum age to open an FHSA (and you must be the age of majority in your province)
71 — The maximum age to open an FHSA
Benefits of Innovation’s FHSA
Enjoy Tax Deductions
Just like with an RRSP, the contributions you make to an FHSA are tax deductible.
Save on Taxes
You won't pay any tax on the interest you earn on your FHSA. Your money will grow tax-free!
Get a Great Rate
You'll earn interest at an excellent interest rate no matter what your balance is!
Pay No Monthly Fees
Your Innovation FHSA charges no monthly fees! You'll save for your home that much faster.
Enjoy No Minimums
There are no minimum balance requirements. Enjoy every account benefit, no strings attached!
FHSA Eligibility Requirements
Age 18 to 71
Resident of Canada*
Social Insurance Number (SIN)
First-Time Home Buyer*
Innovation No-Fee Chequing Account Holder
How to Open an FHSA with Us
Opening an FHSA at Innovation is straightforward. Here’s how to get started in just a few steps.
Check your eligibility. Make sure you meet FHSA requirements (including first-time homebuyer rules) and have your SIN ready.
Become an Innovation member. To open an FHSA at Innovation, you’ll need a No-Fee Chequing Account first.
Open your FHSA. Once your No-Fee Chequing Account is set up, you can open your FHSA Savings Account in online banking.
Already a member? Log in and go to Accounts > Open Account > Registered Accounts > FHSA Savings Account.
Apply today. You can get approval in one business day.
Comparing FHSAs to RRSPs and TFSAs
FHSA | RRSP | TFSA | |
What can I save for? | Down payment for your first home | A home, education, or retirement | General savings |
How much can I contribute? | $8,000/year (up to a maximum of $40,000) | 18% of previous year's income (up to $33,810) | $7,000/year (up to a maximum of $109,000, if eligible since 2009) |
What are the tax benefits? | Investment grows tax-free Your contributions are tax-deductible | Reduces taxable income and the investment grows tax-free | Tax-free growth and withdrawals |
What happens if I make a withdrawal? | Withdrawals for your first-home purchase are tax-free | Taxed as income (excluding withdrawals for Home Buyers’ Plan and Lifelong Learning Plan) | TFSA funds don’t count as taxable income |
When is the contribution deadline? | December 31st | 60 days after December 31st | December 31st |
What's the impact on government benefits? | No impact on other benefits | Withdrawals may impact other government benefits that are based on your income | No impact on other benefits, including retirement |
Are there any withdrawal stipulations? | Make sure withdrawal is a qualifying withdrawal to avoid CRA penalties | Must transfer RRSP funds to a RRIF at age 71 | No penalties or taxes |
Limitations | Limited total savings potential; withdrawals are tax-free for the first home purchase only | Taxed on withdrawal; may impact other government benefits | Over-contribution and non-resident contribution penalties |
Frequently Asked Questions
What is the FHSA contribution limit?
You can contribute up to $8,000 as an annual contribution limit, with a lifetime limit of $40,000. If you exceed these limits, over contribution penalties apply.
There’s also an option to carry forward any unused contribution room to the following year.
What are FHSA withdrawal rules?
Innovation doesn’t charge a withdrawal fee, but FHSA withdrawal rules still apply. To keep your withdrawal tax-free, it must be a qualifying withdrawal (for example, to buy a first home you plan to live in). If it’s not qualifying, the amount may be treated as taxable income and could trigger CRA consequences. For more details, see our FHSA brochure (pdf).
Can I have more than one FHSA?
Yes. You can open more than one FHSA, but your contribution room doesn’t increase. Your annual contribution limit and lifetime limits apply across all your FHSAs combined.
Can I carry forward my unused FHSA contribution to future years?
Yes. If you don’t use all your FHSA room in a year, you can carry forward unused participation room (up to $8,000) to help increase how much you can contribute in a future year.
What is the difference between a TFSA and an FHSA?
A TFSA is flexible for many goals and withdrawals are generally tax-free, but TFSA contributions aren’t tax-deductible. An FHSA is designed for a first home: it offers tax-deductible contributions, and qualifying withdrawals for buying your first home are tax-free.
Can I use both FHSA and the RRSP Home Buyers’ Plan?
Yes. You can use the FHSA and the RRSP Home Buyers’ Plan (HBP) for the same qualifying home, as long as you meet the conditions at the time of each withdrawal.
Learn more about FHSA features, rules, and requirements
FHSA Brochure (pdf)
FHSA Blog - Build Up a Tax-Free Home Savings Account
First Home Savings Account (FHSA)
Available for new members and existing personal members who meet the following requirements:
Must be Canadian residents with a Social Insurance Number (SIN) who are at least age 18 (and no less than the age of majority in their province) and under age 71.
Applicant and/or spouse or common-law partner must not have owned a home where they lived in the current calendar year or at any time in the preceding four calendar years..
Newcomers, permanent residents, and certain temporary residents who meet the residency requirements for income tax purposes can open an FHSA. Typically, temporary residents, including work permit holders and international students, must reside in Canada for at least 183 days in a tax year to qualify as Canadian residents.
Must be an Innovation member with a No-Fee Chequing Account.
Additional FHSA details:
There are no monthly FHSA account fees.
Interest is calculated daily and paid at month end.
Interest rates are as per rate sheet.
Funds are redeemable
There is no minimum deposit balance required.
The maximum balance is $40,000.00 (i.e. maximum allowable contribution). Over contribution penalties apply.
Pre-authorized transfers can be set up at any frequency and amount.
There are no redemption/withdrawal fees; Deposits, withdrawals, transfers always permitted without penalty
The default statement cycle is monthly. No-charge e-statement available (requires email address and online/mobile banking access).