What is the FHSA and when will it be available?

You can now open the Tax-Free First Home Savings Account at NBDB to invest for the purchase of your first home. 

The FHSA is a type of registered account. It allows you to grow your savings tax-free, regardless of your annual income, and save for your first home purchase. 

Withdrawals for first-time homebuyers are not taxable (non-eligible withdrawals will be included in the individual's income).  

Contributions are capped at $8,000 per year and unused contributions can be carried forward to future years. The lifetime contribution maximum is $40,000. 

Withdrawals for the purchase of a home do not have to be repaid (unlike a Home Buyers' Plan in an RRSP). 

If the money is not withdrawn within the time limit set by the government, it can be transferred to an RRSP or withdrawn, subject to withholding tax. 

Visit the National Bank FHSA page to learn more. 

If you prefer to speak to a consultant, the First Home Savings Account is now available at National Bank branches. 

Book an appointment online with the National Bank team to obtain advice and solutions catered to your needs.