What investments are eligible inside an FHSA?

The same investments eligible for TFSAs and RRSPs are eligible for FHSAs: stocks listed on designated exchanges, bonds, GICs, mutual funds, ETFs, and cash/high-interest savings accounts. The rules are governed by the Income Tax Act qualified investment rules.

Can I hold US stocks or ETFs in my FHSA?

Yes. Stocks listed on designated exchanges, including NYSE, NASDAQ, and major US exchanges, are qualified investments. US-listed ETFs like VTI or VOO are also eligible. Note that US dividends inside an FHSA may still be subject to a 15% US withholding tax under the Canada-US tax treaty, unlike an RRSP where treaty protection applies.

Can I hold cryptocurrency in my FHSA?

No, not directly. Bitcoin, Ethereum, and other cryptocurrencies are not qualified investments for FHSAs. However, you can hold Bitcoin ETFs that trade on a designated Canadian exchange (such as BTCC or FBTC on the TSX), which are eligible.

What happens if I hold a non-qualified investment in my FHSA?

If your FHSA holds a non-qualified investment, the fair market value of that investment is included in your income for the year, and you pay a 50% tax on any income or gains from the investment while it is in the account. The investment must be removed from the account.

Should I hold the same investments in my FHSA as my TFSA?

Not necessarily. Because FHSA withdrawals must be for a qualifying home purchase, you should match the investment risk to your purchase timeline. If you plan to buy in 2 years, safer investments like GICs or bond ETFs are appropriate. For 5+ years away, growth ETFs are reasonable.

Is a high-interest savings account inside an FHSA a good option?

A HISA inside an FHSA can make sense for a short timeline (1–3 years) when capital preservation is the priority. Current rates are typically 3.5–5%. For longer timelines, the lack of growth potential reduces the long-term benefit of the account.

Can I hold my own company shares or private company stocks in an FHSA?

Generally no. Shares of private corporations are not qualified investments for FHSAs unless they are shares of a small business corporation that meet specific criteria (rare in practice). Most private company shares are not eligible.

FHSA Investment Options: What You Can (and Cannot) Hold

An FHSA follows the same qualified investment rules as a TFSA and RRSP. You can hold stocks, ETFs, bonds, GICs, mutual funds, and cash — but not real estate directly, cryptocurrency, or most private company shares. What matters most is choosing the right type of investment for your purchase timeline.

Eligible investments

Investment Type	Examples	Notes
Canadian stocks	BCE, Royal Bank, Shopify (TSX)	Eligible if listed on a designated exchange
US and international stocks	Apple, Tesla (NYSE/NASDAQ)	Eligible; US dividends may face 15% withholding
Canadian-listed ETFs	XEQT, VEQT, XIC, ZAG	Most popular growth and balanced ETFs
US-listed ETFs	VTI, VOO, BND	Eligible; US dividend withholding may apply
Bonds (government and corporate)	Federal, provincial, investment-grade corporate	Eligible
Bond ETFs	ZAG, XBB, VAB	Eligible
GICs	From chartered banks and credit unions	Must be from an eligible institution
Mutual funds	Most Canadian mutual funds	Check with institution
High-interest savings accounts (HISA)	EQ Bank, Oaken, Simplii	Offered as specific FHSA-registered products
Money market funds	Available through brokerages	Eligible
Bitcoin ETFs (Canadian exchange)	BTCC.B, FBTC (TSX-listed)	Eligible because they trade on TSX

Non-eligible investments

Investment Type	Examples	Why Not Eligible
Cryptocurrency (direct)	Bitcoin, Ethereum, Solana	Not listed on designated exchanges
Real estate (direct)	Rental property, REITs via private structures	Property itself is not a qualified investment
Private company shares	Most startups and private holdings	Not listed on a designated exchange
Gold or silver bullion (direct)	Physical gold bars or coins	Not a qualified investment
Commodity futures contracts	Directly held futures	Not qualified
Leveraged or inverse ETFs	HXDM.U, some inverse products	Technically eligible (exchange-listed) but high-risk; confirm with institution
Foreign accounts or investments	International accounts	FHSA must be held at a Canadian institution

Penalty for holding non-qualified investments: The fair market value is included as income in the year it was acquired, plus a 50% tax on income or gains while held. Remove disqualified assets promptly.

Strategy by purchase timeline

The FHSA exists to buy a home. Choose investments that match when you expect to buy.

Years to Purchase	Risk Tolerance	Suggested Approach
1 year or less	Very low	HISA, 1-year GIC ladder
1–2 years	Low	1–2 year GICs, short-term bond ETF (e.g., ZMMK)
2–4 years	Low-moderate	60% bonds / 40% equities, or balanced ETF (e.g., XBAL)
4–7 years	Moderate	All-equity ETF (e.g., XEQT, VEQT)
7+ years	Moderate-high	All-equity ETF with growth focus (e.g., XEQT)

Important: Unlike a TFSA, you cannot re-contribute if you withdraw from an FHSA for a home purchase. Your contribution room disappears permanently on withdrawal. A loss close to purchase time sets back your entire down payment — do not take on unnecessary risk in the final 1–2 years.

Worked example: building toward a home purchase

Scenario: Patricia opens her FHSA in January 2026 at age 27. She plans to buy a home in 7–8 years. She contributes $8,000 per year.

Year 1–5: growth phase

Year	Contribution	Balance (7% annual growth)	Investment
2026	$8,000	$8,560	XEQT
2027	$8,000	$17,759	XEQT
2028	$8,000	$27,602	XEQT
2029	$8,000	$38,134	XEQT
2030	$8,000	$49,403	XEQT

Year 6–7: shift to capital preservation

Year	Contribution	Balance	Investment
2031	$0 (lifetime max reached)	—	Shift to 60/40 balanced
2032	—	Target withdrawal year	GICs and HISA for final year

Patricia’s $40,000 in contributions could grow to approximately $47,000–$52,000 over 7 years in an all-equity ETF, depending on market returns.

FHSA vs TFSA vs RRSP: what to hold where

Each account has different rules around withdrawals and tax treatment that affect which investments make the most sense inside each one.

Account	Best Investments	Why
FHSA	Growth ETFs (long timeline) or GICs/HISA (short timeline)	Tax-free growth; must be used for home — match to timeline
TFSA	Growth ETFs, US stocks	Tax-free growth; flexible withdrawal, so can take on long-term risk
RRSP	Foreign equities (esp. US)	US dividends exempt from 15% withholding under Canada-US tax treaty in RRSP; not in FHSA or TFSA

Note on US dividends: In an RRSP, the Canada-US tax treaty waives the 15% US withholding on dividends. This treaty protection does not apply to FHSA or TFSA. If you hold US dividend-paying stocks in your FHSA, 15% withholding still applies even though the withdrawal is tax-free in Canada. For this reason, holding growth-focused (not dividend-focused) US ETFs or dividend-free Canadian assets in an FHSA is slightly more efficient.

Top ETF options for an FHSA

Long timeline (5+ years to purchase)

ETF	MER	What It Holds
XEQT (iShares Core Equity)	0.20%	100% global equity; ~45% Canada, ~30% US, ~25% Intl
VEQT (Vanguard All-Equity)	0.24%	100% global equity; ~30% Canada, ~40% US, ~30% Intl
ZEQT (BMO All-Equity)	0.20%	100% global equity; similar to XEQT

Moderate timeline (3–5 years)

ETF	Allocation	MER
XBAL (iShares Balanced)	60% equity / 40% bond	0.20%
VBAL (Vanguard Balanced)	60% equity / 40% bond	0.25%
ZBAL (BMO Balanced)	60% equity / 40% bond	0.20%

Short timeline (1–2 years)

Option	Typical Rate	Notes
1-year GIC (e.g., EQ Bank, Oaken)	3.5–5.0%	Locked; buy to mature before purchase
HISA (registered inside FHSA)	3.0–4.5%	Flexible, slightly lower rate
ZMMK (BMO Money Market ETF)	~overnight rate	Liquid, very low volatility

Opening at a discount brokerage vs bank

Provider Type	Options Available	Commission
Discount brokerage (Questrade, Wealthsimple Trade)	Full range of ETFs, stocks, GICs	$0–$4.95/trade (varies)
Robo-advisor (Wealthsimple Invest, Questwealth)	Automatic rebalanced ETF portfolios	0.25–0.50% annual fee
Big bank branch	Often limited to bank’s own mutual funds	Typically no commissions; higher MER on funds

For most investors, a discount brokerage holding a simple one-ticket ETF (XEQT or VEQT) is the lowest-cost, highest-diversification approach.