How a First Home Savings Account (FHSA) Can Help First-Time Homebuyers Save for a Down Payment
Buying your first home is an exciting milestone, but for many Canadians, the biggest challenge is saving enough for a down payment. If you’re a first-time homebuyer or have not owned a home in the last FOUR years in Canada, understanding the First Home Savings Account (FHSA) could give you a huge advantage.
Where First-Time Homebuyers Get Their Down Payment
According to the 2024 CMHC Mortgage Consumer Survey, the main sources of down payments for first-time homebuyers are:
59% – Savings outside an RRSP
38% – Gifts from family or friends
31% – Savings within an RRSP
While these strategies are common, many Canadians are overlooking a powerful, tax-advantaged tool: the FHSA.
What is a First Home Savings Account (FHSA)?
The FHSA is a government-backed savings account specifically designed to help Canadians save for their first home. It combines the best features of an RRSP and a TFSA:
Tax-deductible contributions – Reduce your taxable income while saving
Tax-free growth – Any investment growth inside the FHSA is tax-free
Tax-free withdrawals – Use the funds for your first home purchase without paying taxes
You can contribute up to $8,000 per year, with a lifetime limit of $40,000. If you decide not to use your FHSA for a home, you can transfer the funds to your RRSP without affecting your contribution room.
Why Most Canadians Aren’t Using the FHSA
The same CMHC survey found that 71% of potential first-time homebuyers in Canada are aware of the FHSA, but only 33% are taking advantage of it. That means many Canadians are leaving tax savings on the table and slowing down their path to homeownership.
Benefits of Using an FHSA to Save for Your Down Payment
Accelerated Savings – Maximize contributions and watch your funds grow tax-free.
Lower Taxes – Contributions are deductible from your income, lowering your annual tax bill.
Flexibility – If your plans change, funds can be moved to your RRSP.
Peace of Mind – A dedicated account ensures your down payment savings aren’t spent elsewhere.
How Jubinville Financial Can Help
At Jubinville Financial, we guide first-time homebuyers in Canada to create a step-by-step savings plan for their down payment using the FHSA. We’ll help you:
Maximize your FHSA contributions
Invest your savings strategically
Understand all available tax benefits
Stay on track to reach your first home goal faster
📞 Contact Jubinville Financial today to start your FHSA and make your first home dream a reality.
Source: 2024 CMHC Mortgage Consumer Survey
