Home advantage: RBC launches Canada’s newest savings and investing account for prospective home buyers

RBC has launched Canada’s new First Home Savings Account (FHSA), to help Canadians save tax free for their first home.

The FHSA combines the best features of an RRSP and a TFSA. Like an RRSP, contributions are tax deductible. And like a TFSA, earnings within the FHSA are tax-free, provided they are used for a qualifying home purchase when withdrawn.

The annual contribution limit per individual is $8,000 up to a lifetime maximum contribution of $40,000. Unused contribution room can be carried forward to future years (subject to certain requirements), but contribution room only starts to accumulate after an FHSA has been opened.

“We wanted to make this account available as quickly as possible, so Canadians can start making their FHSA contributions and investing those funds, to begin their home buying journey,” explained Erica Nielsen, executive vice president, Personal Banking & Investments, RBC. “The big plus is that any investment gains within your FHSA can also go toward your home purchase, on top of your $40,000 FHSA lifetime contribution maximum.”

Also, for anyone who has been contributing to their RRSP to use the Home Buyer’s Plan (HBP), FHSA funds can be combined with those savings to put toward the purchase of a home, with no impact on contribution limits for the HBP or the RRSP. Individuals who can take full advantage of both the FHSA and the HBP could accumulate up to $75,000 – or up to $150,000 per couple – plus potential earnings within their FHSA toward a down payment on a first home, as defined for an FHSA.

RBC is now making FHSAs available through RBC Direct Investing and RBC InvestEase. FHSAs can be opened digitally at either of these RBC online investment services and through RBC Online Banking or by speaking with a financial advisor at an RBC branch.

“Our research indicates Canadians have been eagerly awaiting the FHSA, with almost one-third of those who aren’t yet homeowners telling us they were planning to use this new account to save for a home purchase,” said Nielsen. “This new savings and investing account will be a tremendous support to anyone who has that dream.”

Nielsen added, “We hope Canadians will check out RBC’s FHSA options on our website or come into any of our branches and have a conversation with one of our advisors if they need assistance in choosing the FHSA that best fits their needs.”

More information is available online at www.rbc.com/firsthome or by visiting any RBC branch to speak with an advisor.

 Fast Facts – FHSAs Annual contribution limit is $8,000 per individual FHSA – and contributions are not tied to income.Contribution room starts to accumulate only after an FHSA has been opened.Unused contribution room can be carried forward to future years.The lifetime maximum contribution is $40,000 – but any gains made through investments within an FHSA can also be used toward a qualifying home purchase.FHSA funds can be combined with RRSP’s Home Buyer’s Plan (HBP) savings, to put toward the purchase of a qualifying home.*The fine print – eligibility, definition of ‘first-time home buyer’, timeframeFunds can be withdrawn tax-free like a TFSA, if proceeds are used for a qualifying home purchase and owner is a first-time home buyer at the time of withdrawal.First-time home buyer as defined for FHSA: Neither the account holder nor their spouse/common-law partner have owned a home in which they lived in the current calendar year the account is opened or in the four previous calendar years.FHSA must be used to buy a home by Dec. 31 of the 15th anniversary of the account opening, or by Dec. 31 of the year the owner turns 71 – or if not used to buy a home, funds can be transferred tax-free to an RRSP or a RRIF – to not be subject to tax/to remain tax-free.To be eligible, you must be at least 18 years old (age of majority in province/territory of residence) and a resident of Canada with a Social Insurance Number.
RBC’s investment options and advice support for Canadians interested in FHSAs: RBC is proud to offer a comprehensive suite of investment services to help you achieve your
goals. Whether you want to be hands-on, hands-off, or somewhere in-between, you can choose how you want to work with us to grow your investments. Best of all, our investment services are not mutually exclusive, which means you can choose to take advantage of several of our investment services for your different life goals. Below are the investment
options we offer. RBC Direct Investing: A self-managed, easy to use digital investing platform that enables you to trade when and how you want. You trade yourself, with access to outstanding investor resources, including research from experts and to free real-time market data to support your trading decisions. Learning resources such as the Investors Toolkit help you build skills, knowledge and confidence. You can trade online, or through the RBC mobile app, with Investment Services Representatives available to answer your questions and assist with account management. Our products include: stocks, ETFs, options, mutual funds, bonds and GICs. In addition to FHSA, we offer TFSA, RRSP, RRIF, RESP, non-registered investments (cash & margin) and non-personal accounts. RBC InvestEase: A low-cost, low-effort digital service that makes investing simple and stress-free, powered by smart technology and backed by professional advisors. You answer a few simple questions online and get matched to an ETF portfolio aligned to your goals, objectives, and risk tolerance. You can also choose between a standard ETF portfolio or a responsible ETF portfolio, which incorporates companies that prioritize environmental, social and governance (ESG) factors. A professional team of Portfolio Advisors will then select, buy and manage your investments on your behalf. There is no minimum to open an account and your money gets invested once your balance reaches $100. For answers to your questions and personalized advice, you can reach our portfolio advisors by phone or email. InvestEase currently offers FHSA, TFSA, RRSP and non-registered investment accounts. Advice through Branch and Advice Centre advisors: Providing one-on-one advice virtually, by phone or in-person, powered by MyAdvisor. Our advisors provide personalized advice to support you in making decisions about your investments and your finances. They use MyAdvisor – RBC’s interactive digital advice platform – to work with you to understand your goals and develop recommendations to help you achieve those goals. You can access our advice in person, virtually or by phone, to help you determine which investment approach is best for your FHSA. For more information, please check outwww.rbc.com/firsthome or visit any RBC branch to speak with an advisor. 

About RBC

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 97,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.


MyAdvisor is an online platform from RBC where you can view your financial information including visual representations (charts and graphs) of your retirement readiness, net worth, cash flow, and financial goal tracking. You can also see how varying your current approach can affect your savings and goals. The MyAdvisor platform also enables you to book an appointment with an RBC advisor and to meet with your advisor using video chat or phone to open new accounts, including investment accounts, and get advice on meeting your financial goals.

Financial planning services and investment advice are provided by Royal Mutual Funds Inc.

(RMFI). Investment advice provided by RMFI may be delivered through the MyAdvisor platform. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.

RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2023.

RBC InvestEase is a restricted portfolio manager providing access to model portfolios. Other products and services may be offered by one or more separate corporate entities that are affiliated to RBC InvestEase Inc., including without limitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC Dominion Securities Inc., RBC Global Asset Management Inc., Royal Trust Corporation of Canada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase. The services provided by RBC InvestEase are only available in Canada.

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