Tax-Free First Home Savings Account (FHSA)

Even more returns with a bonus of 1.25%!

When you put money aside to realize your dream of becoming a homeowner, Épargne Placements Québec rewards you! Take advantage of a bonus of 1.25% on the first year’s interest rate for all new amounts invested in your FHSA. Certain conditions apply. Want to know all about the bonus? Then visit Promotions and Advantages.

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.

Advantages of the FHSA

• 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.

Reasons to invest in Épargne Placements Québec’s FHSA

• Products that are well suited to your FHSA portfolio.
• Advantageous interest rates.
• The advantage of paying no management or administration fees.
• Access to Online transactions so you can track your investments at all times.
• Investments fully guaranteed by the Québec government, regardless of the amount or term.

Eligibility conditions for Épargne Placements Québec’s FHSA

• 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.

 

Good to know

• 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. 

Contributions and transfers

You can contribute to your FHSA in several ways:

• through electronic funds transfers from another financial institution;
• through Flexi-Plus Savings held in an Investment Savings account;
• through transfers of products from an Investment Savings account or an RRSP account held at Épargne Placements Québec;
• through bank withdrawals, which allow you to contribute on a regular, automatic basis.

These options offer flexibility to investors who wish to contribute to their FHSA in various ways.

Important: Contributions made by electronic funds transfer from another financial institution must be received by December 31 at the latest to be recorded for the current year. After this date, they will be counted as contributions for the following year.

You can make the following transfers by contacting an agent:

• the transfer of liquid assets from an FHSA or an RRSP held in another financial institution to an FHSA at Placements Québec;
• the transfer of net income from the FHSA held at Épargne Placements Québec to an RRSP or an RRIF held at Épargne Placements Québec.

To find out how to make withdrawals from your FHSA, go to the FHSA Withdrawals page.

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