First Home Savings Account (FHSA)
Canada's newest registered account designed specifically for first-time home buyers. Get the best of both RRSP and TFSA benefits in one powerful savings tool.
Why FHSA is a Game-Changer
Tax Deduction
Reduce your taxable income when you contribute
Tax-Free Withdrawal
No tax when you withdraw for your first home
Home Focused
Purpose-built for first-time home buyers
Who it's for
First-time home buyers (or haven't owned in 4+ years)
Canadian residents aged 18-71
Anyone wanting tax-efficient home saving
Those maxing out other registered accounts
Key advantages
Double tax benefit - deduction going in, tax-free coming out
No repayment required (unlike RRSP Home Buyers' Plan)
Investment growth is completely tax-free
Can be combined with other first-time buyer programs
Contribution Limits & Rules
$8,000
Annual contribution limit
Per calendar year
$40,000
Lifetime maximum
Total contributions allowed
15 years
Maximum participation
Or until funds are used
Real-World Example
Sarah's FHSA Strategy
Age: 28, software developer, $75,000 salary
Goal: Buy first home in 5 years
Strategy: Contribute $8,000/year to FHSA
The Results
Total contributions (5 years):$40,000
Tax savings (30% bracket):$12,000
Investment growth (6% annual):$6,800
Total for home purchase:$46,800
FHSA gives you both the tax deduction (like RRSP) and tax-free withdrawal (like TFSA), but you don't need to repay the funds. With RRSP HBP, you must repay within 15 years or face tax consequences.
You can transfer the funds to your RRSP (tax-free) or TFSA (subject to contribution room), or withdraw with tax consequences. The account must be closed by age 71 or 15 years after opening, whichever comes first.
Yes! You can combine FHSA with RRSP Home Buyers' Plan, First-Time Home Buyer Incentive, and provincial programs to maximize your home buying power.
You (and your spouse/partner) must not have owned a home that you lived in during the current year or the previous four calendar years. This applies worldwide, not just in Canada.
FHSA subject to eligibility requirements and CRA rules. Licensed HLLQP.