Step 1: Confirm You're Eligible
Before opening an FHSA, make sure you qualify:
- You're a Canadian resident
- You're 18 or older (19 in some provinces, but federally the account can be opened at 18)
- You're a first-time home buyer, meaning you haven't owned a home you lived in during the current year or the previous four calendar years
Permanent residents qualify. Many temporary residents on work permits may qualify too, check with your institution or a tax professional.
Step 2: Choose Where to Open It
FHSAs are available at most major financial institutions in Canada:
Banks: TD, RBC, Scotiabank, BMO, CIBC, National Bank all offer FHSAs. Good if you want everything in one place, though investment options may be limited to their own products.
Online brokerages: Wealthsimple, Questrade, and RBC Direct Investing offer FHSAs with access to ETFs and stocks. Typically lower fees and better investment options.
Recommendation: If you plan to invest in low-cost ETFs (recommended), open your FHSA at Wealthsimple or Questrade. Both are free to use with no account minimums and offer commission-free ETF trading.
Step 3: Gather Your Documents
You'll typically need:
- Social Insurance Number (SIN)
- Government-issued ID (passport or driver's licence)
- Canadian address
- Banking information for transfers
Newcomers without a Canadian credit history can still open an FHSA. It doesn't require a credit check.
Step 4: Apply Online
The application process at most institutions is fully online and takes 10–15 minutes:
- Visit the institution's website and search for "FHSA" or "First Home Savings Account"
- Complete the online application. You'll be asked to confirm your first-time buyer status
- Verify your identity (usually via a selfie + ID scan or by answering knowledge-based questions)
- Link a bank account for transfers
- Account is typically active within 1–3 business days
Step 5: Make Your First Contribution
Once the account is open, set up a contribution, even a small one. This locks in the year for contribution room purposes. You can contribute up to $8,000 per calendar year, and unused room carries forward by up to $8,000.
Consider setting up automatic monthly contributions so you stay on track without thinking about it. Even $500/month hits $6,000 by year-end.
Step 6: Invest Your Contributions
Cash sitting in an FHSA earns very little. Most people invest in a diversified ETF, something like XEQT (all-equity) or XBAL (balanced) depending on your timeline and risk tolerance. If you're buying within 2–3 years, a more conservative allocation makes sense.
Ottawa Context
Many Ottawa credit unions, like Meridian and Alterna Savings, also offer FHSAs and are worth considering if you prefer a locally-rooted institution. Several Ottawa branches of the big banks have dedicated first-time buyer advisors who can walk you through the process in person.
Bottom Line
Opening an FHSA takes less than an hour. The biggest mistake is waiting. Every month you delay is lost tax-deductible contribution room and tax-free growth.
