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Make an FHSA withdrawal
Your First Home Savings Account (FHSA) is designed to help you reach your goal of buying your first home.
- Home
- Registered plan withdrawals
- Make a FHSA withdrawal
When it’s time to use your FHSA, there are two types of withdrawals you can make: a qualifying FHSA withdrawal, which is tax-free if you’re purchasing a qualifying home, and a non-qualifying FHSA withdrawal, which is taxable if the funds are used for other purposes.
Knowing the difference ensures you get the most out of your FHSA savings and avoid unexpected tax consequences.
Types of FHSA withdrawals
What it is
Withdraw funds from your First Home Savings Account (FHSA) tax-free when you’re ready to buy your first home.
Things to know
- Tax-free withdrawal: If program rules are met, no withholding tax applies.
- Eligibility: You must be a first-time homebuyer and have a written agreement to buy or build a qualifying home before October 1 of the year following your withdrawal.
- One-time use: You can only make a qualifying FHSA withdrawal once in your lifetime.
To request a qualifying FHSA withdrawal
- Make sure you meet all conditions.
- Complete RC725 Form, Request to Make a Qualifying Withdrawal from your FHSA to make a qualifying withdrawal from your FHSA.
What it is
Withdraw funds from your FHSA for reasons other than buying your first home. Non-qualifying FHSA withdrawals are taxable.
Things to know
- Taxable withdrawal: Amounts withdrawn are subject to withholding tax and must be included in your income for the year.
- No re-contribution: Withdrawn funds do not create new FHSA contribution room.
- Flexible use: You can use the withdrawn funds for any purpose, but tax implications apply.
To request a non-qualifying FHSA withdrawal
Complete and submit our online First Home Savings Account Plan Withdrawal Form.
Important information
- Fixed FHSA GICs are not eligible for early redemption and must remain invested until the expiry of the selected term.
- Your request will be completed within 1–3 business day of receipt of the completed form. Log in to online banking to verify your FHSA withdrawal.
- Partial withdrawals are subject to a $1,000 minimum withdrawal amount and a minimum remaining balance of $1,000.