FHSA Guide

The First Home Savings Account (FHSA) is a registered savings plan that combines the best features of RRSPs and TFSAs. It's designed specifically for first-time home buyers in Canada.

FHSA Contribution Limits

• Annual Contribution Limit: $8,000
• Lifetime Contribution Limit: $40,000
• Carry Forward: Unused contribution room carries forward (up to $8,000)

The Best of Both Worlds

Like an RRSP: Contributions are tax-deductible, reducing your taxable income for the year.

Like a TFSA: Withdrawals for a qualifying home purchase are completely tax-free.

This means you get a tax break when you contribute AND when you withdraw - the ultimate tax advantage for home buyers.

Who Can Open an FHSA?

• Canadian residents aged 18 or older
• First-time home buyers (haven't owned a home in the current year or the previous 4 years)
• Valid Social Insurance Number required
• Account must be used within 15 years of opening

Qualifying Home Purchase

• Must be a qualifying home in Canada
• Must intend to occupy as your principal residence within one year
• Can be combined with RRSP Home Buyers' Plan for even more savings

What If You Don't Buy a Home?

If you don't use your FHSA for a home purchase, you can transfer the funds to your RRSP or RRIF without affecting your contribution room. Alternatively, you can make a taxable withdrawal.