Since the FHSA is a registered account, there are some rules and processes associated with taking money out of your account. Whether you’re withdrawing to buy your first house, or for another purpose, the reason you withdraw from your FHSA impacts how the CRA treats your withdrawal for income tax purposes.

Please follow the appropriate steps found in this article depending on your withdrawal type.

Qualifying withdrawals

Qualifying withdrawals are withdrawals made to purchase your first home. 

You can make a qualified withdrawal from your FHSA by starting with the same steps as a standard withdrawal. From there, follow the prompts to ensure your eligibility and complete a qualified withdrawal.

Non-qualifying withdrawals (taxable)

Non-qualifying withdrawals are withdrawals for purposes other than to purchase your first home. 

If you’re making a non-qualifying withdrawal from your FHSA account, the withdrawn amount will be subject to income tax withholding. 

To process these withdrawals, contact our support team with the following information: 

• Your FHSA account number
• Which bank account you’d like to withdraw the funds to

Once we have all the required information, we will process your qualifying withdrawal within 3 to 5 business days.

Designated withdrawals 

Designated withdrawals allow you to withdraw any amount that exceeds your available FHSA contribution room. 

To process these withdrawals, contact our support team with the following information: 

• Your FHSA account number
• Which bank account you’d like to withdraw the funds to

Once we have all the required information, we will process your qualifying withdrawal within 3 to 5 business days.