That’s a great question. Each registered plan has its own features and benefits. Let’s break it down:

¹ Except if the withdrawal is made as part of the Home Buyer’s Plan (HBP) and Lifelong Learning Plan (LLP) which are not taxed provided they are repaid within the required time.
² However, you don’t start accumulating contribution room until you open an FHSA account.

Setting up an FHSA will be as easy as our other Registered plans. You can do it:

• By appointment ­– Book a chat with one of our advisors
• In person – Find your nearest branch
• By phone – Call our Member Hub at 604-419-8888

You can contribute $8,000 a year to your First Home Savings Account for up to 15 years. The maximum total FHSA contribution limit is $40,000.

You can also carry forward unused contribution room. That means, if you open an FHSA and don’t contribute the full annual limit, it automatically increases how much you can add the following year.

Example

You open an FHSA, but only contribute $2,000 in the first year. That means the following year your contribution limit will be $14,000 ($6,000 from the first year plus $8,000 for the current year).

Yes, you can use your FHSA contributions to reduce your taxable income each year.

FHSA withdrawals aren’t taxed as long as they meet certain requirements. You must:

• Have a written agreement to buy or build a qualifying home¹ by October 1 of the year after you make the withdrawal.

• Be a Canadian resident from the time of the withdrawal to the point of buying the home.

• Plan to live in the home within a year of buying or building it.

If your withdrawal doesn’t meet these requirements, you’ll need to pay withholding tax and the amount you withdraw will be added to your taxable income for that year.

¹ A "qualifying home" is defined as a housing unit located in Canada. It also includes a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit located in Canada.

Yes, you can transfer money from your Registered Retirement Savings Plan (RRSP) to your FHSA tax-free. Just make sure you don’t go over your annual limit ($8,000 plus any previous unused contribution room) or lifetime limit ($40,000).

It’s also important to note that:

1. These transfers are not tax deductible.

2. You won’t be able to re-contribute the transfer amount to your RRSP. That contribution room will be lost.

Yes, you can use both. Having an FHSA won’t affect your eligibility for the Home Buyer’s Plan (HBP). That means you can withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) and $40,000 (plus any interest earned) from your FHSA tax-free to buy your first home.

Just bear in mind that you’ll need to re-contribute your HBP withdrawal to your RRSP within 15 years. The FHSA doesn’t have any repayment requirements.