First Home Savings Account (FHSA)

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Make it yours with the First Home Savings Account.

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Special Offer

From February 1 to May 31, earn an interest rate of up to 5.10%◊ on new FHSA deposits with the Savings Accelerator Account.†

Special Offer

Earn up to $400 with a Scotiabank banking package and an investment plan.§

What is an FHSA?

This new account is a great savings vehicle for your homebuying goals because you never pay a tax bill on these savings.* 

It's the best part of both a Registered Retirement Savings Plan (RRSP), which gives you tax-deduction perks, and a Tax-Free Savings Account (TFSA), which lets your investments grow without a tax bill. This means that the money you put in and earn in this account goes towards the down payment of your first home.

Why invest in an FHSA?

The First Home Savings Account (FHSA) is a registered investment account that can help Canadians contribute up to $40,000 for their first home.

Any growth from your investments is tax-free. Contributions you make to your FHSA can also reduce your taxable income.*

What are the contribution limits?

Every year you gain contribution room in your FHSA. As of January 2023, you can contribute $8,000 annually in your FHSA. However, it’s important to make sure you don’t over-contribute.††

Who’s eligible for the FHSA?

There are three important components to qualify for this investment vehicle:

  • You need to be a resident of Canada
  • You have to be at least 18 years of age (or the age of majority in your province or territory)
  • You or your spouse can't own a home in which you lived, at any time in the year the account is opened or during the previous four calendar years

Is this Registered Plan right for you?

Right for you if you:

  • Are a Canadian Resident
  • Have reached the age of majority in the province where the account is set-up
  • Are a First Time Home Buyer
  • Want your savings to grow over time with the ability to withdraw all of the funds tax-free to buy your first home

May not be right for you if you:

  • Are not a first-time home buyer*
  • Are not a Canadian Resident
  • Are turning 72 this year -since you can only hold and contribute to a FHSA until the year in which you turn 71

Frequently Asked Questions

Building your FHSA

Special offer

Savings Accelerator Account

February 1 to May 31, earn an interest rate of up to 5.10%◊ on new FHSA deposits with the Savings Accelerator Account.†

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How to save for a down payment towards a home as a newcomer

New to Canada and want to buy a home? Here's how to save for your down payment.

Understanding FHSA contribution limits

How you can use the FHSA properly to save toward your first home.

How the Home Buyers' Plan (HBP) can help you become a homeowner

Learn how the Home Buyers' Plan lets you use your RRSP to help pay for your first home.

Read more investment articles

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Additional information

♢
Includes Regular Interest Rate of 0.75% as at February 1, 2024, plus a Bonus Interest Rate of 4.35% until May 31, 2024. Interest is calculated daily and paid monthly or, for bonus interest within up to 90 days of June 1, 2024. Interest rates are per annum and subject to change. Visit the Current Rates Page for more information and current rates.
†

The bonus interest rate (The “Bonus Rate”) applies to New Deposits (defined below) made into an eligible Scotiabank Savings Accelerator Account (“SSAA”) between February 1, 2024 and May 31, 2024 (the “Bonus Rate Period”). Eligible SSAAs include only those held within a First Home Savings Account (FHSA) at either The Bank of Nova Scotia or Scotia Securities Inc. (together, “Scotiabank”). SSAAs held within a TFSA, RRSP, RRIF, LIF, Registered Locked-In RSP, RESP, RDSP or any other registered plan or non-registered account at Scotiabank are not eligible for this Bonus Rate offer.  

 

During the Bonus Rate Period, the Bonus Rate of 4.35% will be earned only on that portion of the SSAA Daily Balance that is greater than the SSAA Daily Balance as of January 31, 2024 (“New Deposits”).   The “SSAA Daily Balance” means, with respect to any particular day, the closing balance in the eligible SSAA. In addition, New Deposits will continue to earn interest at the posted annual interest rate for the SSAA  (click here for current rates). 

 

The Bonus Rate will cease to apply as of June 1, 2024. The bonus interest earned during the Bonus Rate Period will be calculated daily and paid monthly or within up to 90 days after Bonus Rate Period ends. All interest rates described here in are annual rates. 

 

SSAAs must be open and in good standing in order to receive any interest calculated at the Bonus Rate. A SSAA is not in 'good standing' if it has a negative balance, or the account holder is in breach of the account agreement with Scotiabank. 

 

It is the SSAA account holder’s responsibility to determine his or her maximum allowable annual contributions in SSAAs held in registered plans.

 

All other terms and conditions of the SSAA continue to apply, refer to https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/savings-accelerator-account.html for details, including calculation of interest.  

 

By accepting this offer, you consent to receive messages from Scotiabank via e-mail, Scotia OnLine and/or the Scotiabank Mobile Banking App so that we can send you important notices regarding your account or this offer. Should you ever need to change your email address, you can update it by calling us or going into a branch.

 

These offer terms, including the Bonus Rate, may be changed, cancelled or extended at any time, in whole or in part, without notice.

 

Scotia Securities Inc. is a mutual fund dealer and is a corporate entity, separate from, although wholly-owned by, The Bank of Nova Scotia ("Scotiabank"). ScotiaFunds are managed by 1832 Asset Management L.P. and are available from Scotia Securities Inc. 1832 Asset Management L.P. is a limited partnership the general partner of which is wholly-owned by Scotiabank. Scotia Smart Investor is a trade name of Scotia Securities Inc. 

§
Full terms and conditions can be found here: https://www.scotiabank.com/ca/en/personal/bank-accounts.html
*
If you remove funds from the FHSA for any reason other than for a qualifying home purchase, you will have to pay taxes. You will be considered to be a first time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years live in a qualifying home as your principal residence that either you or your spouse or common law partner owned or jointly owned.
††
If you over-contribute to your FHSA, then the excess amount will be taxed at 1% for every month it’s in your FHSA.
**
First-Time Home Buyers’ Tax Credit (HBTC), Government of Canada
1
You must be considered a first-time home buyer, you must have a written agreement to buy or build a qualifying home, either for yourself or for a related person with a disability, you must be a resident of Canada when you withdraw funds from your RRSPs under the HBP and up to the time a qualifying home is bought or built and you must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it.
2
After making a withdrawal to purchase a home, an individual will be required to close their FHSAs within one year and will not be permitted to open another FHSA.
3
A customer along with their spouse or common law partner can use their TFHSA towards the purchase of the same house if they both meet the first-time house buyer criteria.
4
This applies to withdrawals made after March 19, 2019. Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years, starting the second year following the year in which the withdrawal was made.
5
HBP will continue to be available, under which an individual may withdraw up to $60,000 tax free from an RRSP to purchase or build a home, on the condition that amounts withdrawn be repaid to the RRSP over a period not exceeding 15 years. First-time home buyers who withdraw money from their RRSPs between January 1, 2022, and December 31, 2025, will have five years instead of two, to begin repayments over a period not exceeding 15 years.
6
Individuals would be allowed to transfer funds from an RRSP to an FHSA on a tax-free basis, subject to the $40,000 lifetime and $8,000 annual contribution limits. These transfers would not restore an individual’s RRSP contribution room.
®
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