Interactive Brokers has introduced a First Home Savings Account (FHSA) for eligible Canadian residents, the company revealed Tuesday.
Interactive Brokers Launches Home Savings Account in Canada
According to the brokerage, the account offers users a tax-efficient way to save and invest towards purchasing a first home.
The FHSA, a government-registered plan, allows Canadians to contribute up to CAD 8,000 annually with a lifetime limit of CAD 40,000.
Contributions are tax-deductible, and both capital gains and interest income grow tax-free.
“Buying a home is one of the biggest financial milestones, and we’re pleased to offer a savings solution that helps Canadians reach this goal,” said Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers.
The company added that the account also offers long-term flexibility. If unused for a home purchase within 15 years, FHSA funds can be transferred tax-free to a Registered Retirement Savings Plan (RRSP), maintaining tax-deferred growth.
First-time homebuyers, or those who haven’t owned a home in the past four years, can open an FHSA.
The launch aligns with growing demand for tax-efficient tools that support homeownership goals amid Canada’s challenging housing market.
