A First Home Savings Account (FHSA)

Josh Perez • April 18, 2024

Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers.


What is an FHSA?

An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA.


Reasons to Invest in an FHSA:

  • Save up to $40,000 for your first home.
  • Contribute tax-free for up to 15 years.
  • Carry over unused contribution room to the next year, up to a maximum of $8,000.
  • Potentially reduce your tax bill and carry forward undeducted contributions indefinitely.
  • Pay no taxes on investment earnings.
  • Complements the Home Buyers’ Plan (HBP).


How Does an FHSA Work?

  1. Open Your FHSA: Start investing tax-free by opening your FHSA.
  2. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster.
  3.  Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home.


Benefits of an FHSA:

  • Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income.
  • Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA.
  • No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home.


Numbers to Know:

  • $8,000: Annual tax-deductible FHSA contribution limit.
  • $40,000: Lifetime FHSA contribution limit.
  • $0: Taxes on FHSA earnings when used for a qualifying home purchase.


In Conclusion

A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.


Josh Perez
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What You Need to Know About Mortgages and Parental Leave

By Josh Perez • July 8, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
Suburban two-story house with a front porch, two-car garage, and a large tree-lined lawn.

Gifted Down Payment in Ontario? Don't Skip This Step

By Josh Perz • July 7, 2026
Using a gifted down payment to buy a home in Ontario? Learn exactly what lenders require — and the common mistakes that can delay or derail your approval.