Overview

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.

The amount of time it takes to withdraw funds depends on:

• the settlement period for any new deposits (5 business days), and
• the withdrawal timeline, which varies depending on if you're withdrawing from a managed account or a self-directed investing account. Learn more about withdrawal timelines. 

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

Qualifying FHSA withdrawals

Qualifying withdrawals are withdrawals made to purchase your first home. 

How to make a qualifying withdrawal

To make a qualified withdrawal from your FHSA, follow these steps:

1. Log in to the Wealthsimple app on your mobile device.
2. Tap the Move tab at the bottom of the screen.
3. Tap Withdraw.
4. Select the FHSA to withdraw from.
5. Select I'm purchasing my first home, then tap Next.
6. Review the next steps, then tap Next.
7. Follow the prompts to ensure your eligibility and complete a qualified withdrawal.

Withdrawal timeline

Qualified withdrawal timelines are the same as standard withdrawal timelines; they can't be expedited. Learn more about withdrawal timelines.

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If you’re making a non-qualifying withdrawal from your FHSA account, the withdrawn amount will be subject to income tax withholding. 

How to make a non-qualifying withdrawal

To make a non-qualifying withdrawal:

1. Log in to the Wealthsimple mobile app.
2. Tap the Move tab at the bottom of the screen.
3. Choose Withdraw from the menu.
4. Select your desired FHSA to withdraw from.
5. Tap Next.
6. Choose It's for another reason.
7. Tap Next.
8. Follow the prompts to make a non-qualifying withdrawal from your FHSA. 

Withdrawal timeline

It'll take up to 5 business days for your funds to arrive in your bank account.

Withholding tax thresholds

We'll automatically deduct the holding tax from your withdrawal and pay it to the government. The amount of withholding tax we send depends on which province you live in.

Designated withdrawals and transfers

If you over contributed to your FHSA and exceeded your FHSA participation room for the year, you can make a designated withdrawal to reduce any amount that exceeds your participation room.

If you made a transfer from an RRSP to your FHSA that exceeded your FHSA participation room, you can make a designated transfer back to an RRSP account to reduce or eliminate your excess FHSA amount. You can only make a designated transfer for the same amount or less that you initially transferred from an RRSP account. 

To process a designated withdrawal or transfer, 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 designated withdrawal within 3 to 5 business days.