What is a First Home Savings Account (FHSA)?

A First Home Savings Account (FHSA) is a registered account introduced in the 2023 federal budget, designed to help first-time home buyers save for a qualifying first home purchase.

Key attributes

• Annual contribution limit: $8,000; lifetime limit: $40,000
• Unused annual room carries forward by one year only (maximum $8,000 carry-forward at any time)
• Qualifying withdrawals to purchase a first home are tax-free
• If not used for a qualifying home purchase, the account may be transferred to an RRSP or RRIF (tax-deferred) or withdrawn as taxable income
• Account must be closed by December 31 of the year containing the earlier of: 15 years after opening, or the year the holder turns 71 [1]

Can I transfer my FHSA from another provider to IBKR?

• Yes. IBKR accepts inbound FHSA transfers. However, FHSA is not currently ATON-eligible; all transfers are processed via the non-ATON route using rollover cheques.

What types of transfers into an IBKR FHSA are eligible?

The following inbound transfers to an IBKR FHSA are accepted

• FHSA → FHSA (direct transfer, same account holder, using RC721)
• RRSP → FHSA (using RC720; must be between plans of the same individual)

What forms are required to transfer a FHSA?

The required CRA form depends on the source and destination account type

Who initiates the FHSA transfer submission to the relinquishing institution?

• IBKR initiates the submission to the contra (relinquishing) institution for all FHSA transfer types: FHSA→FHSA, FHSA→RRSP, FHSA→RRIF, and RRSP→FHSA. Upon receipt of the RC forms.

Can a FHSA be transferred in-kind, or must assets be liquidated first?

• Assets must be liquidated first. The non-ATON route is a cash-only process; only CAD cash proceeds are accepted. In-kind (securities) transfers are not accepted via this channel.

How long does a FHSA transfer typically take?

• Given the non-automated nature of the transfer, FHSA transfer can take up to 6 weeks to complete.