Tax-Free First Home Savings Account (FHSA)

A new account is available at Épargne Placements Québec: the FHSA

The Tax-Free First Home Savings Account (FHSA) is designed for future first-time home buyers. It combines the advantages of both the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA). It allows you to make a down payment on your home more quickly.

With the FHSA, you get the following tax benefits:

• A deduction is made on your income tax return.
• Your savings grow tax-free.
• Your withdrawals for the purchase of a first home will not be taxable.

In addition, Épargne Placements Québec’s FHSA offers you:

• Products that are well suited to your FHSA portfolio;
• Advantageous interest rates;
• The advantage of paying no management or administration fees;
• A quarterly portfolio statement allowing you to manage your investments efficiently;
• Investments fully guaranteed by the Québec government, regardless of the amount or term.

To open an FHSA with Épargne Placements Québec:

• The participant must be a Canadian resident living in Québec.
• The participant must be at least 18 years of age and no older than 71.
• The participant or his or her spouse must not have owned a home used as his or her principal place of residence during the year the account is opened, nor during the four previous calendar years.

The maximum FHSA contribution is $8 000 annually ($40 000 lifetime). Any unused contribution room in a given year can be carried forward to the next year up to a maximum of $8 000. The unused contribution room begins to accumulate in the year the FHSA is opened.

The FHSA has a 15-year lifespan from the time it is opened. 

Participants can also withdraw funds for purposes other than the purchase of a first home. However, such withdrawals will be taxable and must respect the terms and conditions of the product (e.g., term of the investment). Moreover, the FHSA will continue to exist even if all or part of the funds are withdrawn.

Withdrawals from Épargne Placements Québec’s FHSA are not currently possible They will be possible at a later date.
It is currently possible to contribute to the FHSA through electronic funds transfer or through the Flexi-Plus Savings held in an Investment Savings account. The following transfers are not available at this time:

• Transfers of registered funds from another financial institution;
• Transfers of proceeds from an account already held at Épargne Placements Québec;
• Transfers of proceeds from the FHSA to another account.

To learn more about Épargne Placements Québec’s FHSA, please consult our frequently asked questions.