First Home Savings Account

A First Home Savings Account (FHSA) is a registered account with specific tax advantages.
An FHSA savings account:
  • Helps you save for the down payment on your first home
  • Is tax-free – Investment income and capital gains earned in a FHSA are not taxed, even when you withdraw money from the account. This makes investments with higher returns more attractive.
What investments are eligible?

An FHSA can hold a combination of eligible investments, such as mutual funds, stocks, bonds and ETFs *, Guaranteed Investment Certificates (GICs) and cash. 

How much can I contribute annually?

 Click here to determine the annual limit of your FHSA contributions. 

How much can I contribute from past unused room?

You can carry forward the unused contribution amount to future years. 

Beneficiary considerations

You can set up the account’s assets to transfer directly to your spouse or common-law partner upon your death, as long as he or she is named beneficiary on your FHSA.


What is it and how does it work?
The First Home Savings Account (FHSA) is a savings plan that allows Canadian first-time home buyers to save for their first home. The FHSA is a registered product where contributions are tax deductible and the growth within the account is tax free. 
What should you know?
  • An individual can contribute $8,000 per year to their FHSA, and the lifetime contribution limit is $40,000 (for example: a couple can each contribute to their individual contribution limits). Unused contributions up to $8,000 can be carried forward to future tax years
  • An FHSA can only be open for 15 years and must be closed by the end of the year when the holder reaches age 71
  • The FHSA must be closed by the earlier of December 31 of the 15th year after opening, December 31 of the year the individual turns 71, or December 31 of the year following the first qualifying withdrawal from FHSA.
  • Contributions to your FHSA are tax deductible and can be used as a deduction against your income in the year of the deposit
  • The contributor must keep track of their own contributions to avoid over-contribution penalties imposed by CRA (Canada Revenue Agency)
What is qualifying a withdrawal?
  • The Individual must be a first-time home buyer*
  • The individual is a resident of Canada
  • The withdrawal is made within 30 days of moving into the home
  • The qualifying home is in Canada
  • The individual has a written agreement to buy or build a qualifying home before October 1st of the year following the withdrawal

*a first-time homebuyer is someone who has not owned a home in which you lived in, any time in the preceding four calendar years.
Who is eligible?
  • Individuals who are at least 18 years old
  • Individuals who are a resident of Canada
  • Individuals who are first-time home buyers
  • Individuals who have a valid SIN
What if I don’t buy a home?
  • Any unused funds after the qualified withdrawal may be transferred tax-free to an RRSP or RRIF
  • Funds transferred to RRSPs (Registered Retirement Savings Plans) or RRIFs (Registered Retirement Income Funds) will be subject to their rules and tax considerations
What if I have questions?

Our knowledgeable staff at KCCU (Kingston Community Credit Union) are ready to help you find the best savings option(s).

Book an appointment with an advisor today.

*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees, and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities, and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

At Kingston Community Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through FSRA.

Learn more about deposit insurance here

A third party is an individual or entity, other than the account holder or those authorized to give instructions about the account, who directs what happens with the account. For example, if an account were opened in one individual’s name for deposits that are directed by someone else, the other person or entity would be a third party.

  • A secondary piece of identification from the primary list above
  • Canadian Birth Certificate
  • Credit Card bearing the name and signature of the individual which has issued by a well-known and reputable Canadian financial institution
  • A CNIB (Canadian Institute for the Blind) client card bearing the individual’s photo and signature
  • Provincial Outdoors Card
  • Canadian University or College Student Card with photo (for student identification only)
  • An employee identification card (with photo) issued by an employer that is well known in the community (i.e. KGH, DND, Queens University, Corrections Canada, etc.)
  • Foreign passport
  • Canadian Passport
  • Permanent resident card
  • Citizenship card (issued prior to 2012)
  • Secure Certificate of Indian Status issued by the Government of Canada
  • Driver’s licenses issued by province or territory
  • The DND (Department of National Defense) 404 driver’s license
  • Nexus Card issued by Canada Border Services Agency
  • Provincial Service Cards
  • Provincial or territorial identity cards (i.e. Ontario Photo Identification Card)
  • Foreign Passport (only if it is equivalent to a Canadian issued photo identification document)