FHSA, Explained - Everything You Need To Know About The NEW First Home Savings Account For Beginners

Let me guess - you’re Canadian, looking for ways to save and invest your money so you can buy your first home. If that sounds like you, then you’re in the right place because in this video we’re breaking down the newest registered investment account that’s offered in Canada, the First Home Savings Account or FHSA.

You might have heard of the TFSA, RRSP, RESP, or RDSP before - well, now there’s a new acronym to add to that list. The FHSA was introduced last year by the Canadian government, and just came into effect the other week in April 2023. Now, the main purpose of this account is to help Canadians with saving for their first home - and by the end of this video you’re going to know everything you need to know about the First Home Savings Account and how it works.

0:00 The ‘First Home Savings Account’ is here
0:40 What are the benefits of the FHSA?
3:03 Who can open an FHSA?
4:52 The FHSA has yearly and lifetime contribution limits
6:09 Here’s a few examples
7:46 How do you withdraw money from the FHSA?
9:30 Using your FHSA to invest and grow your money
11:38 How helpful is the FHSA compared to the FTHBP?
13:13 How CDIC protects your deposits

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[stephandden]

Do you have any questions about CDIC protection of deposits held in an FHSA? Ask away below!

[alouiciouswrex]

$40, 000 lifetime maximum, what an absolute joke of a country we're living in when 700sqft apartments can cost up to half a mill.

[andrewdemchyshyn]

13:12 why you think no a lot of people going to use it both rrsp and fhsa ? Only make sense in Toronto to have 75k on your account and another 75k on your spouse account and when combined can be used no?

[mkk]

This might be a silly question (sorry) but can you invest for example in more speculative assets such as bitcoin?

[ruggedWC]

Why is the money used to explain is in US funds? I thought this is for Canadians.

[raficfadel]

Thank you for doing the video. I have a question. Can I contribute to FHSA 8k the next year 2025 for example after using the money to buy the a condo in 2024.(the account should be closed in Dec 2025).
then I can transfer the money to RRSP before closing the account?
Thanks

[gilbertomorais]

Do you know if can use the FHSA for 2 buyers? Common law or spouse use together 40k each and use 80k for pay down the house?

[Mikemathews]

I want to invest in this account but not buy a condo or house with the money

[jitenderchahal]

Government wants to keep our money interest free. Is that what it means. ??😅

[breenguyen]

Hi Steph and Den ! Just want to say that I love your content ! I started my financial literacy journey not too long ago and found it very challenging as they don't teach you this in school. Your easy to understand and well articulated videos helped me a lot ! Especially when it comes to knowing the types of accounts that everyone should have and the various investment options ! Now I'm sharing your videos with friends and family in my social circle who also want to learn !

You got yourself a new subscriber ! I look forward to seeing what other videos you come out with ! <3

[alexanderwiebe]

Most people couldn’t explain the rules of a TFSA to me and don’t use it effectively. Great video, but I suspect this extra layer of complexity will only ensure more people make costly mistakes in which accounts they choose. At best it will push prices of starter homes up. Truth is, now everyone has to use this account to stay competitive in the starter home market.

[chandandeepkaursamra]

Can we do trading in FHSA like buy an etf and then sell it after 5 months and can we use the same to to buy new stock or etf again in FHSA

[alyssalacoste]

Just want to say a BIG THANK YOU to you two and all of the work and energy you put into researching these topics so that someone like me can get trustworthy, well researched information! I'm looking to buy my first home as an Albertan (fingers crossed) in the next few years and this is super helpful! Love it!

[tylerhorst]

You two explain everything perfectly. Thanks!

[BeckyCourage]

Can you use the FHSA to build a home and not purchase outright? Or other home related expenses such as legal fees or appliances?

What if you have a partner who owned a home within 4 years previous? Would that affect you using the funds to purchase a home together?

[DanielaDiaz-fdrq]

For once in my life I feel like I understood a financial video! Keep up the good work! You just gained a subscriber. More gen z needs this duo 💪🏽🔥

[PhinexTV]

question is: Can you use your FHSA + with your 35k RRSP first time home buyer's program and combine it? IS there a rule where you can only use one or the other, or you can use both? It would help us Canadians. Also, would you happen to know is, lets say you open FHSA and put 8k in it, and then you know you're buying it in 2-3 years, can FHSA account be put into a 4-5% GIC so at least it grows by itself while you save up on other ends? Just trying to think of ways we can use the system to benefit us. :) WE in and every condo is like 500k + =(

[ForWorkPurposesOnly]

Very well explained. Thank you! Looks like we will each be opening an FHSA.

[nicheld]

Hey, I was wondering if anyone could help me with some queries that I had on FHSA
1. Can me and my wife both open an FHSA account and use it for buying a single home?
2. Do I qualify for a home if I co-owned a home with a sibling, back in India but I have not lived in it for more than 4 years?
3. If the answer to above question is “No”, then does my wife qualify?

[RX-ucno]

Hello and good day. Great informative video! I have a question. Lets say you have contributed $24000 on your FHSA (for example: opened from 2023-2026). Lets say that for the 5% down on a house, you only need $17500. What happens to the $6500? Does it get tax? Or can it go back your other account free of tax?