The best First Home Savings Account (FHSA) in Canada right now is the EQ Bank FHSA Savings Account. An FHSA is a registered savings account that helps first-time home buyers save, and EQ Bank's product has excellent features, low fees, and an impressive interest rate.
To choose an FHSA, compare the interest rates, fees, and investment options offered by different financial institutions to ensure the account suits your savings goals. Consider factors like account accessibility, withdrawal flexibility, and customer support to find the best FHSA for you.
Here, you'll find reviews of the top FHSA products available for Canadians.
Key Takeaways
- The best FHSA in Canada is the EQ Bank FHSA Savings Account.
- Most institutions offer both a DIY and robo advisor option for managing your FHSA.
- When choosing investments to hold in your FHSA, consider how long you plan to keep the account open.
- If buying a home within 5 years, stick with low-risk investments, but higher risk is okay for the long term.
Comparing the best FHSAs in Canada
Here’s a summary of the best FHSAs in Canada:
How we picked the best FHSAs
To evaluate FHSAs, we analyze over 20 data points to generate a trustworthy Genius Rating. We consider all aspects of an FHSA, including different investment options, fees, perks, average MER, customer satisfaction, and promotions, to assess its overall value. Then, the FHSA’s features are rated based on how they stack up against other available options.
Best FHSA in Canada 2025 winner: EQ Bank
Self-Directed Available
GICs Available
Mutual Funds Available
Savings Account Available
First Home Savings Accounts (FHSAs) promise to make saving for your first home easier by letting you put away up to $40,000 tax free. And EQ Bank FHSA Savings Account promises to help you get there faster by letting you earn up to 1.5% interest on your balance. This stable interest rate is ideal for home buyers who are thinking in the short term.
Pros
- Earn 1.5% tax free interest on your balance
- Next-to-no risk investment
- High-rate EQ Bank FHSA GICs also available
Cons
- Not available in Quebec
- No welcome offer
- You can’t hold any other investments besides GICs
Provinces
AB, BC, MB, NB, NL, NU, NT, NS, ON, PE, SK, YT
Eligibility
- First-time home buyer
- Canadian resident (not in Quebec)
- 18 years or older
Why You Want It
Easily earn 1.5% on your first home savings + Benefit from tax deductions and tax-free growth.
Special Features
See Issuer for Details
Self-Directed Available
Self-Directed Platform
N/A
Self-Directed Base Fee
N/A
GICs Available
Types of GICs
- Non-Cashable
Mutual Funds Available
Average Mutual Fund MER
N/A
Investment PortfoliosAvailable
Investment Portfolio Fees
N/A
Savings Account Available
Minimum Savings Account Rate
1.5%
Maximum Savings Account Rate
1.5%
Promotion
N/A
Promotion End Date
N/A
- Fees: N/A
- Minimum balance to start investing: N/A
Our pick for the best first home savings account of 2025 is the EQ Bank FHSA Savings Account. EQ Bank was the first to offer a set interest rate on the funds held within an FHSA and right now you can earn 1.5% interest on your holdings.
It also offers FHSA GICs with competitive rates. This account is highly competitive and outshines big bank FHSA accounts. Additionally, you can bump up your savings by using EQ Bank’s high-rate FHSA GICs to make your money grow faster. There’s also an extremely low risk to your money.
One detail to note – EQ Bank requires that you open an EQ Bank Personal Account before opening an FHSA. There are plenty of benefits to having this account, including paying zero fees and earning a higher-than-average interest rate, but it's a bit annoying that it's required to have one product when you only really want the other.
Unfortunately, neither the FHSA nor the FHSA GICs from EQ Bank are available to residents of Quebec.
Best discount broker: Qtrade
Self-Directed Available
GICs Available
Mutual Funds Available
Savings Account Available
Trading platform Qtrade now offers their own version of an FHSA, and from the get go, it’s clearly aimed at investors who prefer to keep a close eye on their money. It allows you to keep stocks, bonds, and other investment products in your FHSA, as well as cash.
Pros
- Robust self-directed trading and investing platform
- Keep a wide variety of investments in your FHSA account
- Available everywhere in Canada
Cons
- No interest rate gain
- Mainly aimed at self-directed investors
Provinces
ALL
Eligibility
- First-time home buyer
- Canadian resident
- 18 years or older
Why You Want It
Trade over 100 ETFs for free.
Special Features
See Issuer for Details
Self-Directed Available
Self-Directed Platform
Qtrade
Self-Directed Base Fee
$8.75
GICs Available
Types of GICs
N/A
Mutual Funds Available
Average Mutual Fund MER
N/A
Investment PortfoliosAvailable
Investment Portfolio Fees
N/A
Savings Account Available
Minimum Savings Account Rate
N/A
Maximum Savings Account Rate
N/A
Promotion
N/A
Promotion End Date
N/A
- Fees: $6.95 - $8.75 trading fees (100+ free ETFs)
- Minimum balance to start investing: N/A
If you prefer DIY investing, the Qtrade FHSA is an option from one of Canada's top online brokers. Qtrade sets itself apart from the rest with its robust collection of investment tools, as well as a selection of over 100 ETFs that are free to buy and sell.
This is also an easy entry point for young investors looking to get in the game. If you're between the ages of 18 and 30, your administration fee will be waived if you add at least $50 to your account every month. Plus, there's no minimum balance to worry about. So if you're under 30 and looking to start saving up for a house, you can get some big savings here.
If you sign up through our link, you can get $80 as a GeniusCash bonus to use on whatever you want.
Best for providing choice: RBC
- Fees: 0.5% (RBC InvestEase) or $6.95 - $9.95 (RBC Direct Investing) trading fees
- Minimum balance to start investing: $0
There are several options for holding an FHSA with RBC. You can open one through their robo advisor service, RBC InvestEase, or through their online brokerage, RBC Direct Investing.
When opening an account via RBC's website, users are prompted to answer whether they'd prefer an "FHSA built & managed for me" or an "FHSA I can trade in." Essentially, it's asking whether you'd prefer a robo advisor or an online brokerage – InvestEase or Direct Investing.
RBC Direct Investing doesn't charge any FHSA maintenance fees, but there are commission fees for trading (RBC InvestEase also charges commission fees). A significant perk here is that you have the option of using your Avion points to cover these commission fees. Or you can choose to turn those points into cash contributions and add to your savings.
However you decide to go about it, an RBC FHSA allows you to hold stocks, options, bonds, ETFs, GICs, and/or mutual funds.
Best for step-by-step guidance: National Bank
- Fees: $0
- Minimum balance to start investing: N/A
National Bank of Canada was the very first of the big banks in Canada to offer the FHSA, on April 17, 2023, which is a fact that really sets it apart.
If you're already a National Bank client, you can login online and fill out a form to open an FHSA. But if you're new to National Bank, you'll have to set up an appointment with a bank representative and they'll guide you through the process of setting up the new account. This can be particularly helpful if you have questions or concerns about how the FHSA works.
National Bank now has an FHSA brokerage account available too, adding another option for clients looking to open an account.
There aren't many investment options available with an FHSA from National Bank, though. Your only choices right now are GICs, mutual funds, and cash. Their website says that clients will soon also have access to stocks as well as government and corporate bonds.
Best for earning interest: Meridian Credit Union
- Fees: $6.95 - $8.75 trading fees (100+ free ETFs)
- Minimum balance to start investing: N/A
Meridian Credit Union is one of the top credit unions in Canada and offers an excellent menu of high-quality financial products and services, not the least of which is its FHSA.
You have two options with Meridian: Open your FHSA as an investment account or a savings account. The high interest account offers a decent 0.85% interest rate and free, unlimited transactions. If you go with the investment account option, you can hold GICs, stocks, bonds, ETFs, and mutual funds within it.
Meridian has a partnership with Qtrade, which means you could hold an FHSA there instead. This offers a multitude of benefits, including the convenience of online investing and the blended support options provided by this investment platform and a customer-focused credit union.
Best for ETFs: Questrade
Self-Directed Available
GICs Available
Mutual Funds Available
Savings Account Available
The Questrade FHSA was the very first First Home Savings Account (FHSA) to be available to Canadians. And for those that are already active investors, this FHSA was a welcomed addition to the Questrade investment platform portfolio. But for hopeful homebuyers that want to save for their down payment, is this their best FHSA option? Or is this FHSA better left to more robust investors?
Pros
- Robust self-directed trading platform
- Professionally managed portfolio available
- Free to buy ETFs
- Low $0 minimum investment required to start trading
- Available to all Canadians
Cons
- Does not earn any interest on your cash
- Primarily aimed at active investors
Provinces
ALL
Eligibility
- First-time home buyer
- Canadian resident
- 18 years or older
Why You Want It
Choose between self-directed or managed investments + ETFs are always free to buy.
Special Features
See Issuer for Details
Self-Directed Available
Self-Directed Platform
Questrade
Self-Directed Base Fee
$4.95
GICs Available
Types of GICs
N/A
Mutual Funds Available
Average Mutual Fund MER
N/A
Investment PortfoliosAvailable
Investment Portfolio Fees
0.25%
Savings Account Available
Minimum Savings Account Rate
N/A
Maximum Savings Account Rate
N/A
Promotion
$0 fees
Promotion End Date
December 31, 2024
- Fees: $0 - $9.95 trading fees (or 0.2% - 0.25% with Questwealth)
- Minimum balance to start investing: $250 OR $1,000
Questrade was actually the first institution in Canada to offer an FHSA – they were ready on launch day, April 1, 2023. And while Questrade is a platform for DIY investing, you can also choose to open an account through Questwealth, their robo advisor service.
Whichever platform you choose, you won't have to pay a penny to open an account and get started on your savings. There will, of course, be trading fees involved when you begin to invest your savings. The bright spot here, though, is that you can buy ETFs at no charge with Questrade.
While the site claims that there isn't technically a minimum balance required to open your account, you do need to transfer at least $250 if you choose to open a Questwealth account.
Where can you open an FHSA in Canada?
| Institution | Best features |
|---|---|
| BMO | * 2.5% cash interest rate * Available as a savings or investment account * Extra BMO resources to help with your home-buying journey |
| CIBC | * 2.5% cash interest rate * Available as a savings or self-directed account * $25 minimum requirement to open as a savings account |
| Scotiabank | * 0.25% cash interest rate * Available as a savings account |
| TD | * Available as an investment account * Access via TD Easy Trade, TD Direct Investing, or a TD bank representative * Specialty GICs available |
| Hubert Financial | * 2% cash interest rate * Available as a savings account, term deposit, or self-directed account (via Qtrade) * No minimum deposit required for savings accounts |
| Justwealth | * Available as a managed account * Low management fees * Dedicated personal portfolio managers |
| Saven Financial | * 3% cash interest rate * Available as savings account * Benefits of working with a credit union |
| Fidelity | * Available as a managed account * Expert management from professional investors * Robo advisor option |
| Sun Life | * Available as an investment account * Access to a network of excellent financial advisors * Investment product choices may be limited |
| Desjardins | * 2.5% cash interest rate * Available as a savings account * FHSA loans available |
| Wealthsimple | * Managed and self-directed investment options available * Fees are reimbursed for transferring your FHSA from another institution |
| EQ Bank | * 1.5% interest * Available as a savings account * Specialty GICs available |
| Meridian | * 3% cash interest rate * Available as a savings account, managed account, or self directed account * Specialty GICs available |
| National Bank | * Up to 2.75% interest ($500,000 and over) * Available as a self-directed account * Highly rated National Bank Direct Brokerage platform * Excellent customer service |
| RBC | * Available as a self-directed or managed account
* Highly rated RBC Direct Investing and RBC InvestEase platforms * Use Avion points as contributions or to cover fees |
| Qtrade | * Available as a self-directed account * Beginner-friendly tools |
| Questrade | * Available as a self-directed or managed account * Highly rated Questwealth and Questrade platforms * Buy ETFs for free |
What is an FHSA?
An FHSA is a First Home Savings Account. It’s intended to help first-time Canadian homebuyers save money toward their first home.
Qualifying individuals can save up to $40,000 in this account, all tax-free.
Since it’s a registered account, an FHSA can hold investments as well as cash to help you toward your goal.
How an FHSA works
You can contribute to an FHSA up to a yearly limit ($8,000) and a total limit ($40,000). These funds are tax-free and can be used toward the purchase of a first home.
If you don’t use it by the time you’re 71, the money must be transferred to an RRSP, RRIF, or withdrawn (and taxes paid).
Who can open an FHSA and what are the rules?
Here are the eligibility requirements that you'll need to meet to get an FHSA:
- Be a Canadian resident
- Be at least the age of majority in your province or territory
- Never have lived in a qualifying home that you've owned in the past 4 calendar years
Note that you also can't have lived in a home that your spouse or common-law partner has owned or jointly owned in that time period either.
The FHSA will remain open until:
- You withdraw money from the FHSA (closes at the end of the year)
- You turn 71 (closes at the end of that year)
- 15 years have passed since it was opened
If you don't buy a home with your FHSA, the funds can be transferred to an RRSP or RRIF.
Can you use the FHSA and the Home Buyers’ Plan (HBP) together?
Yes, you can use both your FHSA and the federal Home Buyer’s Plan together.
The HBP is basically a loan from your RRSP with zero penalties or taxation. You can "borrow" up to $60,000 from your RRSP for qualifying properties. However, this triggers a repayment obligation – you have 15 years to repay that money to your RRSP after the grace period.
So long as you meet the criteria for both programs and do not exceed the financial limits, you can use the FHSA and Home Buyer’s Plan together to fund the purchase of your first home.
FHSA start date
You can start contributing to your FHSA on the first day of the year. The first year that you could have contributed to your FHSA was 2023 since that's when it was introduced.
Each year, there is a limit of $8,000 that you can contribute, up to a maximum of 5 years and a grand total of $40,000.
How to contribute and withdraw from your FHSA
Here are the contribution rules for FHSAs:
- Yearly limit: Up to $8,000
- Lifetime limit: Up to $40,000
- Carryover: Unused annual contribution amounts carryover up to 2 years
Here are the withdrawal rules for FHSAs:
- Be a first-time home buyer
- Intend to occupy the home as your principal place of residence
- Move into the home within 1 year
- Written agreement for a qualifying home (buying or building)
- Not have acquired the property 30+ days before the withdrawal
- Complete the process before Oct 1 of year after withdrawal
Note that you have 15 years to buy a home from the day you open your FHSA. Otherwise, you can transfer that money tax-free to an RRSP.
Non-qualifying withdrawals are counted as taxable income.
Real-life FHSA strategies
Knowing the rules is one thing – but seeing how others actually use FHSAs to save for their first home can make the strategy come alive. This section highlights real-world scenarios, success stories, and smart hacks that Canadians are using to maximize the benefits of their FHSAs.
Scenario 1: "Stacking" the FHSA with the HBP
Who it’s for: High-income earners with existing RRSPs
Strategy: Max out your FHSA contributions while simultaneously contributing to your RRSP. When it's time to buy, withdraw up to $40,000 tax-free from your FHSA and another $60,000 via the Home Buyers’ Plan.
Why it works: You benefit from tax deductions on both fronts while building a larger down payment.
Scenario 2: Building your FHSA in GIC Ladders
Who it’s for: Conservative savers buying within 3–5 years
Strategy: Use a ladder of 1–5 year FHSA GICs at a place like EQ Bank to lock in higher rates while maintaining liquidity as your homebuying date approaches.
Why it works: You maximize safe returns while ensuring access to funds year by year.
Scenario 3: Let the Robo Advisor do the heavy lifting
Who it’s for: Busy professionals or investing beginners
Strategy: Open an FHSA with a robo advisor like Wealthsimple or Questwealth. Select a low-to-medium risk profile based on your timeline.
Why it works: Your investments are automatically rebalanced, saving time and reducing stress – especially helpful if you’re juggling work, life, and home searching.
Scenario 4: Partner power – double your down payment
Who it’s for: Couples planning to buy together
Strategy: Both partners open and fund their own FHSAs. You can each contribute up to $40,000, giving you an $80,000 tax-free boost toward your home.
Why it works: FHSAs are individual accounts, so couples can double-dip – legally and smartly.
Bonus hack: Contribute, then transfer to RRSP if plans change
If you decide not to buy a home, you can transfer FHSA savings to your RRSP without affecting your RRSP contribution room. This gives you flexibility in case your timeline changes.
FHSAs vs RRSPs and TFSAs
FHSAs, RRSPs, and TFSAs can be used in tandem for your money-saving journey because of their niche specializations, whether it be a home purchase or enjoying a worry-free retirement.
| LE SSERASSERAFIMFIM | First Home Savings Account (FHSA) | Tax-Free Savings Account (TFSA) | Registered Retirement Savings Plan (RRSP) |
|---|---|---|---|
| Eligibility | Canadian residents over the age of majority who have never owned a home | Canadian residents over the age of majority with a social insurance number | Residents of Canada under the age of 71 with an income |
| Purpose | Save up to buy a home | Save up in general | Save up for retirement |
| Annual contribution limit | $8,000 (lifetime limit of $40,000) | $7,000 (changes annually) | $32,490 (changes annually) |
| When you can withdraw your money | When buying a home, or when the account is closed due to age (15 years or the end of the year you turn 71) | Withdrawals can happen whenever you like | Anytime, but you'll be taxed on the amount you withdraw |
| How taxes affect the account | Contributions not taxed if withdrawn for home-buying, with tax deductions on contributions | Contributions and earnings not taxed when withdrawn | Contributions not taxed until withdrawn, with tax deductions on contributions |
What you should consider when choosing an FHSA
- Are you more comfortable dealing with a big bank or an online bank?
- Does your current bank of choice offer an FHSA? If not, would you prefer to wait until they do, or are the present options good enough?
- Would you prefer to use an online brokerage and do the work yourself? Or would it be easier to go with a robo advisor and take advantage of the automation?
- What fees are involved? How high are they and how do they compare?
- Is there an interest rate provided? Is it competitive?
- How well-rated is the customer service at this financial institution? What types of communication methods are provided and are they convenient for you?
What investments can be held in an FHSA?
Investment securities available to hold within an FHSA are generally the same as what's allowed in a TFSA and/or RRSP:
- Stocks
- ETFs
- GICs
- Mutual funds
- Publicly traded securities,
- Government and corporate bonds
- Savings accounts
Are FHSA contributions tax deductible?
Yes, contributions to your FHSA are generally tax deductible. You can deduct them either for the year of the contribution or for a future year. Work with a tax professional to figure out the right strategy for you.
There are 2 exceptions where FHSA money is taxable:
- If you transferred money from your RRSP to your FHSA
- If your contribution exceeds your lifetime limit of $40,000
If you opened but didn’t contribute to an FHSA, you still need to file a Schedule 15.
For a full list of guidelines about FHSAs and tax liability, check out the official government page: Tax deductions for FHSA contributions.
Do FHSAs have expiry dates?
FHSAs do not expire, but you only have 15 years to use those funds for a first-home purchase starting from the date you opened the account.
If you have not purchased a home at the 15-year mark with those FHSA funds, then you can transfer the money from your FHSA to an RRSP.
Best FHSA According to Reddit
Many Redditors agree that Wealthsimple is the natural choice for an FHSA, given the lack of trade fees and the quality of its mobile app.
It’s easy to see why many Canadians are increasingly indifferent towards the paltry rewards that big bank accounts offer.
An online institution like Wealthsimple has fewer overhead costs, which allows them to offer better rates and perks – and you aren’t missing much security or customer service compared to a big bank.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
FAQ
What's the best FHSA account in Canada?
EQ Bank offers one of the best FHSAs in Canada due to its high interest rates and low fees. This account provides easy online access and no minimum balance requirement, making it a flexible and user-friendly option for first-time homebuyers.
Are FHSA deposits insured?
Yes, FHSA deposits are insured for up to $100,000 – usually with the CDIC. Credit unions aren't always CDIC members but often provide insurance via another entity, such as Meridian Credit Union's coverage through the Financial Services Regulatory Authority (FSRA).
Is there an FHSA contribution limit?
Yes, account holders are limited to contributing $8,000 per year to their FHSA. There's also a lifetime (max of 15 years) contribution limit of $40,000. No tax is applied to the funds in this account.
Is the FHSA account from Tangerine a good choice?
While Tangerine doesn't currently offer an FHSA, it's reasonable to assume it will eventually provide one. Tangerine has a reputation for reliable products and competitive rates, so their FHSA will doubtlessly be a good choice.
What does the FHSA from RBC Direct Investing have to offer?
As an online brokerage, RBC Direct Investing offers an FHSA you can manage on your own. There aren't any maintenance fees involved, and you can use your Avion points to either cover the commission fees or as cash contributions.
What should I invest my FHSA in?
There isn't a one-size-fits-all answer. You should weigh your risk tolerance and diversify as much as possible, but ETFs, GICs, and using cash in a high-interest savings account are excellent investment choices for your FHSA.
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