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A First Time Home Savings Account (FHSA) can hold savings or investments. The same qualified investments that are allowed to be held in a TFSA can also be held in an FHSA. This could include mutual funds, bonds and GICs.

FHSA contributions are generally tax deductible meaning you can claim your annual contributions on your tax return, and either reduce your tax owing or add to your refund at tax time.

It’s important to be aware that an FHSA has certain limits including, how long the account can remain open and annual contribution limits.

Learn how the First Home Savings Account (FHSA) works by visiting GetSmarterAboutMoney.ca.