Main Content
Submitted by hirvitas on Tue, 05/21/2024 - 12:30
Empire Life First Home Savings Account
Empire Life First Home Savings Account
First Home Savings Account (FHSA)
A new way to build your business and attract younger clients

Canadians saving for their first home now have another option, the First Home Savings Account. But it’s not just a benefit to clients. The FHSA gives advisors a new tool to gather assets and attract a new, younger generation of clients to their business while retaining established clients who want to help their kids or grandkids save for a home.

What’s in it for you and your clients?

Advisor benefits
  • New revenue stream.
  • Intergenerational strategy—attract younger clients while enabling your established clients to help their kids or grandkids.
  • Advisors can demonstrate the value of the trusted advice they bring to their clients by offering information and strategies geared to saving for a home and creating cross selling opportunities.
  • PADs (pre-authorized debit) create a recurring revenue stream and can help maintain an ongoing relationship with clients.
  • If a home isn’t purchased, advisors have an opportunity to retain assets as clients can transfer FHSA assets into their RRSP or RRIF.
Advisor Guide—get more from an Empire Life FHSA

The Empire Life FHSA is available in GIF 75/75 with purchase fee options of FEL, NL and F-Class in a range of investment options. Learn more in the advisor guide.

Dreaming of homeownership—make it a reality with a First Home Savings Account consumer brochure

Client benefits
  • Another tax-advantaged way to save for a home.
  • Tax-free growth and withdrawals.1
  • Maximize home savings using three registered plans: FHSA, TFSA (Tax-Free Savings Account) and HBP (The Home Buyers’ Plan from an RRSP).
  • Recurring contributions (pre-authorized debit, PADs) create a healthy savings habit to build towards the goal of home ownership.
  • If a home is not ultimately purchased, FHSA assets can be transferred to the client’s RRSP/RRIF on a tax-deferred basis without impacting any unused RRSP deduction room.
FHSA—a win-win for you and your clients

Start the client conversation now by leveraging our client friendly consumer brochure.

Dreaming of homeownership—make it a reality with a First Home Savings Account consumer brochure
How an Empire Life FHSA can fit your client’s situation

Share and discuss these consumer friendly case studies with your clients.

Amina & Sanjay, a young couple excited to be holding the keys to their first home.

Amina and Sanjay—Maximizing FHSA contributions to help buy a home sooner

Dean, a young man, smiling as he dreams of homeownership.

Dean—Using an FHSA to benefit from tax-free growth

Jessica and Steve hiking on the beach with their two young children.

Jessica—Transferring FHSA assets to an RRSP when homeownership doesn’t happen

Better together—maximizing client’s home savings with tax-friendly strategies
Clients may be able to take advantage of three tax-friendly ways to build their home savings: FHSA, TFSA and RRSP with HBP. Advisors can leverage these options to demonstrate the value of the trusted advice they bring to their clients by offering information and advice on taking advantage of these strategies.

FHSA and PADs—Put it on autopilot
Advisors can recommend PADs to create a healthy savings habit for their clients to help them reach their home savings goal, and a recurring revenue stream for their business.
Eligibility to open an FHSA
  • Resident of Canada.2
  • 18 years or older, or 19 years old if that is the legal age to enter into a contract in their province or territory.
  • 71 years or younger as of December 31 of the year the FHSA is opened.
  • First-time home buyer.3
FHSA points to know
$40,000 lifetime contribution limit

lifetime contribution limit

$8,000 annual comtribution limit

annual contribution limit

FHSA can only be open for a maximum of 15 years

an FHSA can remain open7

  • Can contribute for a maximum of 15 years.
  • Yearly contribution limit of $8,000 up to the $40,000 lifetime participation room.
  • Savings growth is tax-free.
  • Withdrawals are tax-free if used to purchase a qualifying home.
  • Contributions are deductible on income tax return, similar to an RRSP.
  • Unused participation room can be carried forward up to a maximum of $8,000 per year.
  • Contribution room only starts to accumulate once an FHSA has been opened.
The Empire Life FHSA difference

Laptop showing Empire Life's online Fast and Full® Investment Application on screen.

Take advantage of our fully digital application process to attract and service younger clients efficiently and on their terms. Our online Fast & Full® Investment Application makes it simple, fast and easy to open an FHSA.

Laptop showing the Empire Life My Advisor Dashboard on screen.

The Empire Life My Advisor Dashboard is a simple, fast and easy way for advisors to get the information they need. It’s also possible to place additional deposits completely online without needing a face-to-face meeting, providing flexibility for advisors and clients. Your clients can sign up for MyEmpire® to see their FHSA balance and investment growth.

Point of Sale Materials
Additional Resources

1 If the withdrawal is a qualifying withdrawal.

2 Must be Canadian resident at time of home purchase. Non-residents may contribute to an existing FHSA but must be a Canadian resident to make a qualifying tax-free withdrawal.

3 First-time home buyer and have not lived in a qualifying home, either fully or jointly owned by the client, or owned or jointly owned by their spouse or common-law partner, as their principal place of residence within the calendar year the FHSA is opened, or in the previous four calendar years or did not have a spouse or common-law partner at the time the FHSA was opened.

A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value.

® Registered Trademark of The Empire Life Insurance Company.