The First Home Savings Account (FHSA) is a registered account designed to help Canadians save for their first home. It combines the best features of both the RRSP and TFSA - tax-deductible contributions AND tax-free withdrawals.
Annual Contribution Limit: $8,000 per year
Lifetime Contribution Limit: $40,000
Carry-Forward: Up to $8,000 of unused room can be carried forward
Lifetime Contribution Limit: $40,000
Carry-Forward: Up to $8,000 of unused room can be carried forward
The Best of Both Worlds
Tax-Deductible
Like an RRSP, your contributions reduce your taxable income and can result in a tax refund.
Tax-Free Withdrawals
Like a TFSA, qualified withdrawals for your first home are completely tax-free.
Tax-Free Growth
All investment income earned inside your FHSA grows tax-free.
Combine with Partner
Both you and your spouse can each have an FHSA - up to $80,000 combined for your first home.
Who Can Open an FHSA?
- Canadian resident
- At least 18 years old (19 in some provinces)
- First-time home buyer (have not owned a home in the current year or previous 4 calendar years)
- Valid Social Insurance Number
How It Works
- Contribute: Up to $8,000 per year (tax-deductible)
- Invest: Choose from stocks, bonds, mutual funds, ETFs, GICs
- Grow: All investment gains are tax-free
- Withdraw: Take out funds tax-free when you buy your first qualifying home
What If You Do Not Buy a Home?
If you do not use your FHSA for a home purchase:
- You can transfer the funds to an RRSP or RRIF tax-free
- The account must be closed by December 31 of the year you turn 71
- Or 15 years after opening, whichever comes first
Start Saving for Your First Home
Our advisors will help you open and maximize your FHSA.
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