The Rise of the FHSA: A View from the Front Lines at Endeavour Wealth Management

Here at Endeavour Wealth Management, few innovations in financial planning have been more impactful than the First Home Savings Account (FHSA). Since it became available in 2023, we’ve had a front-row seat helping dozens of clients open accounts and build strategies around them. The excitement in our Winnipeg office is real, and the results are compelling. For many first-time buyers, it’s fundamentally changed the home-buying conversation.

On behalf of our team, we’re sharing what we’ve seen on the front lines: why this account is one of the most effective tools for aspiring homeowners and the strategies our clients are using to get into their first homes sooner.

What is the FHSA? A Quick Refresher

We describe the FHSA as a “superstar” savings account: it blends the best of an RRSP (the tax deduction) with the best of a TFSA (tax-free growth and qualifying withdrawals).

Key mechanics we review with every client:

• Tax-deductible contributions: Every dollar you contribute (up to your limit) can reduce your taxable income. For many clients, this has meant tax refunds worth thousands of dollars.
• Tax-free qualifying withdrawals: When you buy or build a qualifying home, both contributions and investment growth can be withdrawn tax-free (see rules below).
• Contribution limits: Up to $8,000 per year, with a $40,000 lifetime limit.
• Carry-forward (after you open): Unused annual room carries forward but only after you’ve opened an FHSA up to an additional $8,000.
• 15-year window: You can keep an FHSA open for up to 15 years (with earlier closure if you make a qualifying withdrawal or reach age-based limits; see “Lifecycle limits” below).

Eligibility (at a glance):

• Canadian resident, age of majority in your province/territory.
• First-time home buyer: You did not live in a home you (or your spouse/CLP) owned as your principal residence during the current year or the preceding four calendar years.

Withdrawal rules (high level):

• Qualifying withdrawals are tax-free when used for a qualifying home purchase (with a written agreement and the intention to occupy as your principal residence within about a year).
• Non-qualifying withdrawals are taxable.

Lifecycle limits (high level):

The FHSA must be closed by the earlier of: 15 years after opening, the end of the year following your first qualifying withdrawal, or December 31 of the year you turn 71.

Our Report Card: Real-World Impact We’re Seeing

From our professional vantage point, the FHSA earns an A+ for practical impact. We’re seeing tangible evidence that it can shorten the time needed to build a down payment often by years.

A simple example:

A young professional contributes $8,000 in 2024 and $8,000 in 2025. That’s $16,000 plus investment growth. At a 35% marginal tax rate, their contributions generate about $5,600 in tax refunds over those two years (which can be reinvested). That creates a momentum loop our team actively encourages.

The Best FHSA Strategies We’ve Implemented with Clients

Opening the account is step one. To harness the full benefit, here are strategies we’ve seen work best:

Refund-to-Reinvest

Treat the tax refund as your first deposit for next year, not a bonus. This mindset creates a powerful, repeatable savings loop that accelerates progress.

RRSP → FHSA Transfer (direct transfer)

Ideal for savers who’ve built RRSP balances but want tax-free withdrawal flexibility for a home purchase. A direct transfer from RRSP to FHSA:

• Counts toward your annual and lifetime FHSA limits,
• Does not create a new RRSP deduction (i.e., not tax-deductible on transfer), and
• Does not affect your RRSP deduction room.Done right, it’s a clean way to reposition existing savings for a first home.

Don’t Just Save Invest (aligned to timeline & risk)

Letting funds sit in cash can lose purchasing power to inflation. We help clients align FHSA investments with time horizon and risk tolerance:

• Short timeline (1–3 years): High-interest savings ETFs or GICs are popular, lower-volatility choices.
• Longer timeline (4+ years): A diversified mix of low-cost ETFs may offer higher growth potential.

Note: All investing involves risk, including possible loss. Product selection should match your goals, timeline, and risk profile.

The Partner Power Move

Couples can each open an FHSA to double contribution room. For example, we recently worked with a couple looking in St. Vital: by opening individual FHSAs and investing consistently, their combined contributions and growth are tracking to a materially larger down payment than they initially thought possible.

FHSA + Home Buyers’ Plan (HBP) = A Powerful Combo

common question: “Does the FHSA replace the HBP?” No and that’s good news. You can use both to boost your down payment.

• FHSA: Qualifying withdrawals are tax-free  and don’t require repayment.‍
• HBP: You can withdraw up to $60,000 (current     limit) from your RRSP and must repay the amount over time     (generally over 15 years)

Used together and coordinated with your savings plan this duo can materially increase your available down payment.

Our Verdict

After guiding many clients through this process, we’re confident in saying the First Home Savings Account has lived up to its promise. For first-time buyers, it’s one of the most effective tools in Canada to accelerate a down payment.

If you’re dreaming of owning a home, our advice is simple: start the conversation early. If you’re an Endeavour Wealth Management client and we haven’t discussed the FHSA yet, let’s connect. If you’re not yet a client, we hope this overview helps and we encourage you to speak with a qualified professional about your situation. Opportunities like this are too important to overlook.

Quick FHSA FAQ

Who qualifies as a first-time home buyer?

You didn’t live in a home you (or your spouse/CLP) owned as your principal residence in the current year or the previous four calendar years.

Does FHSA room accumulate if I haven’t opened one yet?

No. Room starts the year you open your FHSA. From there, any unused annual room carries forward (up to $8,000).

Can I use the FHSA and HBP together?

Yes. Many clients combine tax-free FHSA withdrawals with HBP withdrawals (repayable) to maximize their down payment.

‍

Mitchell Cathcart, Marketing Assistant, Kondwelani Kalinda, Associate Investment Advisor and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Mitchell Cathcart Marketing Assistant, Kondwelani Kalinda, Associate Investment Advisor and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.  

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and Canadian Investment Regulatory Organization. IA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operate

‍