Buying your first home is one of life’s biggest financial milestones—but it’s also one of the most expensive. That’s why the First Home Savings Account (FHSA) has become such a game-changer for young Canadians looking to build a down payment, while also investing for growth along the way.
At Brant Financial Group | Assante Capital Management Ltd., we believe the FHSA isn’t just a savings tool—it’s an investment opportunity. With the right strategy, it can accelerate your path to homeownership and give you a valuable tax advantage.
What is an FHSA?
The First Home Savings Account is a registered plan introduced by the federal government to help Canadians save for their first home. It combines the tax-deductibility of an RRSP with the tax-free withdrawals of a TFSA, as long as the funds are used to purchase a qualifying home.
Here’s how it works:
Annual contribution limit: $8,000
Lifetime contribution limit: $40,000
Contributions are tax-deductible, like an RRSP
Investment growth is tax-free, like a TFSA
Withdrawals are tax-free when used for a first home purchase
You have 15 years from opening the account to use the funds
How to Maximize It
The FHSA is more than just a place to park cash—it’s a powerful investment tool. Here’s how to make the most of it:
1. Open it Early—Even Before You're Ready to Buy
You don’t need to be ready to buy a home to open an FHSA. The earlier you start, the more time your investments have to grow tax-free. Even if a home purchase is 5–10 years away, starting now puts compound growth on your side.
2. Invest Strategically Based on Your Timeline
If you plan to buy a home in a year or two, you’ll want conservative investments like high-interest savings or low risk funds. But if your goal is five or more years away, a diversified portfolio of stocks and bonds could help your money grow significantly faster.
3. Coordinate With Your RRSP and TFSA
An FHSA isn’t the only tax-sheltered account you can use to save. A financial advisor can help you decide how to balance contributions across your FHSA, RRSP, and TFSA to minimize taxes and maximize growth.
4. Don’t Miss a Year
You can carry forward unused FHSA contribution room, but you can only contribute $8,000 per year. The sooner you maximize each year’s limit, the more time your investments have to grow.
5. Transfer RRSP Funds Into Your FHSA
You can move money tax-free from your RRSP to your FHSA (up to your contribution limits), giving you the flexibility to use those funds for a home down payment while still preserving tax advantages.
Why Work With an Advisor?
An FHSA is simple on the surface, but the decisions you make inside it—what you invest in, when you contribute, and how you coordinate with your other savings—can have long-term consequences.
At Brant Financial Group | Assante Capital Management Ltd., we help clients:
Design custom FHSA investment portfolios based on risk tolerance and timeline
Build tax-efficient contribution strategies that align with their broader financial goals
Navigate the transition from saving to buying, including how to use the Home Buyers’ Plan (HBP) alongside an FHSA
Decide how to repurpose FHSA savings if a home purchase doesn’t happen
The Bottom Line
The FHSA is one of the most flexible, tax-efficient tools available to first-time homebuyers in Canada. But to truly maximize its benefits, it’s important to think beyond just saving—you need a strategy that reflects your investment goals, homeownership timeline, and overall financial plan.
Let’s talk. Whether you're planning to buy in two years or ten, we can help you make the most of your FHSA and move confidently toward your first home.
