FHSA (First Home Savings Account)
A First Home Savings Account (FHSA) is a tax-advantaged savings plan designed to help Canadians save for the purchase of their first home.
Tax-free savings to help you buy your first home faster.
The First Home Savings Account (FHSA) is a new registered plan introduced by the Canadian government to make it easier for first-time homebuyers to save for a down payment. It combines the best benefits of an RRSP and a TFSA: you get a tax deduction today and pay no tax on withdrawals for your first home.
If you're dreaming of owning your first home, the FHSA is a smart, tax-efficient way to get there sooner.
How Does an FHSA Work?
- You can contribute up to $8,000 per year, with a lifetime maximum of $40,000.
- Contributions are tax-deductible —they reduce your taxable income just like an RRSP.
- The money grows tax-free inside the account.
- When you’re ready to buy your first home, you can withdraw funds completely tax-free —including all investment growth.
- If you don’t end up buying a home, the funds can be transferred tax-free into your RRSP or RRIF.
Who Is Eligible?
You can open an FHSA if you meet all the following conditions:
- Canadian resident and at least 18 years old (or age of majority in your province)
- First-time homebuyer: You or your spouse haven’t owned a home in the past 4 calendar years
- Planning to buy a qualifying home in Canada within 15 years of opening the account
Why Choose an FHSA?
- Double tax advantage: Tax-deductible contributions + tax-free withdrawals
- Grow your down payment faster with compounding returns
- Ideal for young professionals and new graduates starting to save
- Can be used in addition to the RRSP Home Buyers’ Plan (HBP)
- Flexibility to transfer unused savings to your RRSP
What Can the FHSA Hold?
Your FHSA can hold a range of investments:
- Mutual funds
- ETFs
- GICs
- Stocks and bonds
- Segregated funds (offered by insurance companies)
This gives you full control over how aggressively or conservatively you want to grow your savings.
Key Features
- Annual contribution limit: $8,000
- Lifetime contribution limit: $40,000
- Account can stay open for up to 15 years or until you turn 71
- Funds must be used to buy a qualifying home (principal residence in Canada)
- Combine with RRSP’s Home Buyers’ Plan for even greater purchasing power
- Unused contribution room can be carried forward to future years
Take the first step toward home ownership.
We’ll guide you through setting up your FHSA and choosing the right investment strategy—so you can build your down payment faster and make your first home a reality.