The First Home Savings Account is one of the best new tax breaks for Canadians in years. Wealthsimple is one of the most popular places to open one. Here is an honest look at whether it is the right choice in 2026.
An FHSA combines the best features of a TFSA and an RRSP for first-time home buyers. Your contributions are tax-deductible (like an RRSP), and your withdrawals for a qualifying home purchase are completely tax-free (like a TFSA). It is one of the most powerful savings tools the government has introduced in decades.
| FHSA Feature | Details |
|---|---|
| Annual contribution limit | $8,000 |
| Lifetime contribution limit | $40,000 |
| Unused room carries forward | Yes — up to $8,000 per year |
| Contributions tax-deductible | Yes — reduces your taxable income |
| Withdrawals for home purchase | Tax-free |
| Account expires | After 15 years or at age 71 |
| Eligible age | 18 or older |
To open an FHSA you must be a Canadian resident, at least 18 years old, and a first-time home buyer. The CRA defines first-time buyer as someone who has not owned a home they lived in at any point in the current calendar year or the preceding four years.
| Fee | Amount |
|---|---|
| Account opening fee | $0 |
| Monthly account fee | $0 |
| Stock and ETF trades | $0 commission |
| Minimum balance | $0 |
| Managed portfolio (optional) | 0.4–0.5% per year |
Inside a Wealthsimple FHSA you can hold Canadian and US stocks and ETFs commission-free, or use a managed portfolio where Wealthsimple invests for you automatically. For a first home savings goal, many people opt for a balanced ETF like VBAL or XBAL — moderate risk with steady growth over a 3–10 year horizon.
Yes — for most first-time buyers it is the best option available. Zero fees mean every dollar you contribute goes toward your home, not your broker. The app makes it easy to set up automatic monthly contributions and watch your balance grow. And the $25 signup bonus is a small but real bonus on top of your tax savings.
The one limitation: if you want access to GICs inside your FHSA, Wealthsimple does not currently offer them. For GIC access, EQ Bank is an alternative worth considering. But for stock and ETF investing inside an FHSA, Wealthsimple is hard to beat.
Yes. Zero commission, no fees, no minimum balance, and a clean app make it one of the best places to open an FHSA in Canada. The $25 referral bonus is an added bonus on top of the tax benefits.
$8,000 per year with a lifetime maximum of $40,000. Unused contribution room carries forward by up to $8,000 per year.
Yes. You can use both programs for your first home purchase. Combined, they allow up to $75,000 in tax-advantaged savings toward a down payment.
If you do not use your FHSA for a qualifying home purchase within 15 years (or by age 71), the funds can be transferred to your RRSP or RRIF without affecting your contribution room, or withdrawn as taxable income.
Related: Wealthsimple TFSA review · Wealthsimple RRSP review · Get the $25 referral code
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