First Home Savings Account (FHSA) from RBC

The First Home Savings Account (FHSA) is a registered savings account designed to help first-time homebuyers save for a down payment with tax-advantaged treatment. It combines tax-deductible contributions and tax-free withdrawals for qualifying home purchases, making it a useful tool for anyone planning to buy their first home.

Opening an FHSA through the RBC Mobile App is quick and straightforward. The app allows you to open the account inside one of three RBC platforms and complete basic identity verification from your phone.

Quick outline

• Open RBC Mobile and go to More
• Scroll to Products and choose Open an account
• Choose Investments and select the platform (RBC InvestEase, RBC Royal Bank, or RBC Direct Investing)
• Choose New First Home Savings Account and verify name and date of birth
• Set contribution goals and automate deposits if desired

Step-by-step: Opening an FHSA in the RBC Mobile App

1. Open the RBC Mobile App and tap More in the bottom-right corner.
2. Scroll down to the Products section and select Open an account.
3. On the Open an account page, scroll to the bottom and tap Investments.
4. Choose which RBC investment platform to open the FHSA under: RBC InvestEase, RBC Royal Bank, or RBC Direct Investing. Any of these options will allow an FHSA to be opened. For a self-directed investing experience, select RBC Direct Investing.
5. Scroll to Choose another account and select New First Home Savings Account from the dropdown.
6. Tap Continue. The app will prompt for basic verification such as name and date of birth. Complete the verification to proceed.
7. After verification, follow the on-screen prompts to finalize the account setup. This usually includes confirming contact details, linking funding accounts, and choosing any initial contribution preferences.

Which RBC option should be used for the FHSA?

RBC InvestEase

Best for: hands-off investors who want a robo-advisor. InvestEase manages a diversified portfolio for you and charges a management fee. It handles portfolio construction, rebalancing, and ongoing management.

RBC Royal Bank

Best for: customers who want the FHSA held within their regular banking relationship. This is a simple option for those who want a straightforward savings account experience using bank-managed products.

RBC Direct Investing

Best for: self-directed investors who want control over investments inside the FHSA. This platform lets users buy ETFs, mutual funds, and other eligible investments. It suits people comfortable making their own investment decisions and trading.

Account setup tips and best practices

• Verify identity correctly: The mobile process asks for name and date of birth verification. Make sure these match government ID to avoid delays.
• Set contribution goals: Decide how much to contribute and whether to automate deposits. Automating contributions accelerates progress toward a down payment.
• Consider the investment approach: If planning to hold cash or GICs, a bank-managed FHSA might be fine. For equity exposure, Direct Investing or InvestEase might be better.
• Watch fees: Account setup is usually free, but investment products and management services have fees. Compare management fees, trading commissions, and fund MERs before committing.
• Confirm FHSA rules and limits: FHSA rules, annual and lifetime contribution limits, and eligibility details can change. Check current regulations with the Canada Revenue Agency or RBC before making tax decisions.

Pros and cons of opening an FHSA through the RBC Mobile App

Pros

• Fast, mobile-first application process that can be completed from a phone
• Choice of three platforms to match investment preferences
• Option to automate contributions and track progress digitally
• Streamlines identity verification and account linking

Cons

• Some users may prefer in-person assistance for initial setup or complex questions
• Fees and product costs vary by platform and investment selection
• Feature availability and wording in the app may change, so steps could look slightly different over time

Who should open an FHSA via the RBC app?

• First-time homebuyers who want a tax-advantaged way to save for a down payment
• People who prefer handling all account setup digitally from a phone
• Investors who want the flexibility to choose a robo-advisor, self-directed investing, or bank-managed savings

Pricing and fees

Opening an FHSA in the app is typically free. However, ongoing costs depend on the chosen platform and investment products. Possible fees include management fees for InvestEase, trading commissions or platform fees for Direct Investing, and fund management expense ratios for mutual funds or ETFs. Always review RBC’s current fee schedule and product disclosures before investing.

Recommendation

For those confident managing investments, open the FHSA through RBC Direct Investing to maintain control over asset selection. For hands-off investors who want professional portfolio management, RBC InvestEase is a convenient choice. If maintaining everything within the personal banking relationship is most important, use RBC Royal Bank.

The mobile setup is straightforward: More > Products > Open an account > Investments > pick a platform > New First Home Savings Account > verify name and date of birth > continue. After setup, set contribution goals, consider automating deposits, and monitor progress toward homeownership.

Final notes

The FHSA is a practical tool for first-time buyers when used with the right investment approach. Using the mobile app makes starting the account fast and convenient, but take a moment to compare platforms, confirm fees, and ensure setup details are correct before completing the application.