🏠 FHSA

FHSA — Canada's Best Plan for First-Time Homebuyers

The First Home Savings Account combines the tax deduction of an RRSP with the tax-free withdrawal of a TFSA — exclusively for buying your first home. Up to $40,000 in lifetime savings space.

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What Is an FHSA?

Canada's Newest — and Most Powerful — Savings Plan

The First Home Savings Account (FHSA) launched in April 2023 and gives first-time homebuyers an unprecedented tax advantage: contributions are tax-deductible (like an RRSP) AND qualifying withdrawals are completely tax-free (like a TFSA). It's the best of both worlds.

You can contribute $8,000/year with a $40,000 lifetime maximum. Unused annual contribution room carries forward one year. Combined with the RRSP Home Buyers' Plan, a couple can access up to $150,000 tax-free for a home purchase.

$8,000/year tax-deductible contributions
$40,000 lifetime contribution limit
100% tax-free qualified withdrawal for first home
Unused room carries forward one year
If unused, transfer to RRSP with no tax impact
Account can stay open for up to 15 years

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FHSA + RRSP Strategy

Save Up to $75,000 Tax-Free Per Person

💡 The Power Couple: FHSA + RRSP Home Buyers' Plan

First-time homebuyers can combine up to $40,000 from their FHSA with up to $35,000 from their RRSP Home Buyers' Plan — for a total of $75,000 per person, completely tax-free. A couple buying together can access up to $150,000 in tax-free down payment funds. This is one of the most powerful wealth-building strategies available to Canadians today.

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Tax Deductible Contributions

Like an RRSP, every dollar contributed to your FHSA is deducted from your taxable income — giving you an immediate tax refund that you can reinvest or save.

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Tax-Free Withdrawals

Unlike the RRSP, FHSA withdrawals for a qualifying first home purchase are completely tax-free and never need to be repaid. No repayment plan required.

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Start Early, Benefit More

The sooner you open your FHSA (even if you can't contribute much yet), the sooner your carry-forward room starts accumulating. Opening it now costs nothing.

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Transfer to RRSP If Not Used

If you buy a home using other means or decide not to buy, you can transfer your entire FHSA balance to your RRSP tax-free — losing nothing.

Frequently Asked Questions

FHSA Questions Answered

You must be a Canadian resident, at least 18 years old, and a first-time homebuyer (meaning you have not owned a qualifying principal residence at any time in the current year or the preceding 4 calendar years).

Yes! In fact, I strongly recommend contributing to both — especially if you're a first-time buyer. The FHSA gives you the unique advantage of both a tax deduction today AND a tax-free withdrawal for your home purchase.

The home must be in Canada, must be your principal residence within one year of purchase, and you must not have owned a principal residence in the current year or any of the preceding 4 calendar years.

After 15 years (or if you turn 71, whichever comes first), you must close the FHSA. You can transfer the entire balance to your RRSP or RRIF completely tax-free. No penalty — you effectively converted it to an RRSP.

Absolutely. Opening the account as soon as possible starts your contribution room accumulating immediately. You can contribute whenever you're ready and have up to 15 years to use the funds.