If you are a Canadian saving for your first home, the First Home Savings Account (FHSA) is arguably the best registered account ever created. It combines the tax-deductible contribution benefits of an RRSP with the tax-free growth and withdrawal benefits of a TFSA. That means contributing to your FHSA is a great way to build a down payment for your first home.
Many banks offer FHSA accounts but WealthSimple probably has the best one. While most Canadian banks charge monthly fees Wealthsimple offers a completely fee-free FHSA. WealthSimple also charges no trading commissions on most Canadian stocks and Candian ETFs, where most banks charge about $10 per trade. WealthSimple also offers managed investing (in case you prefer to let the professionals handle your investments) for as low as 0.2% annually.
Here is everything you need to know about opening an FHSA on Wealthsimple and how to maximize your tax savings.
Tax Deduction on Contributions: Every dollar you deposit up to your annual limit reduces your taxable income for the year, giving you a bigger tax refund.
Tax-Free Growth: Any investment gains, dividends, or interest earned inside the FHSA grow completely tax-free.
Tax-Free Withdrawals: When you are ready to buy your first qualifying home, you withdraw the principal and all gains tax-free.
No Repayment Required: Unlike the traditional Home Buyers' Plan (HBP) used with RRSPs, you do not need to pay the withdrawn funds back into your account.
Flexibility for Retirement: If you do not end up purchasing a home within 15 years, you can transfer the accumulated funds directly to an RRSP or RRIF without affecting your regular RRSP contribution limits.
Note that the Canadian government may change the contribution limit, lifetime limit, or any part of the rules for the First Home Savings Account at any time without notice, so always double check before contributing. The above chart is current as of 2026.
Self-Directed FHSA: Buy individual Canadian stocks or commission-free ETFs (like CASH.TO, VCNS, or XEQT) with zero transaction fees.
Managed FHSA: If you prefer hands-off investing, Wealthsimple's automated robo-advisor will build and rebalance a low-fee portfolio tailored to your home-buying timeline.
Unlike traditional financial institutions that require large upfront deposits to waive maintenance fees, Wealthsimple lets you start your FHSA with as little as $1.
WealthSimple offers a bonus (typically a cash bonus) if you open your account using a referral code. To get that bonus:
Sign up using WealthSimple referral link https://www.wealthsimple.com/invite/BM5_AG
If you prefer to do it manually, in the app or website tap the Gift Box icon, select "Enter referral code," and enter referral code BM5_AG
Open a chequing account (it's free) your FHSA account (it's also free). The FHSA can be self-directed or managed by WealthSimple.
Deposit $100 CAD or more within 30 days of signing up to unlock your bonus! WealthSimple will automatically deposit your bonus into your chequing account a few days after you make your deposit.