First Home Savings Account (FHSA)

Updated November 2026. Source: Canada Revenue Agency (links below).

The FHSA lets first-time home buyers save for a down payment with a tax deduction going in and tax-free withdrawals coming out when the money is used to buy a qualifying first home.

It combines features of an RRSP (contributions are generally tax-deductible) and a TFSA (qualifying withdrawals aren't taxed). And unlike the Home Buyers' Plan, money you withdraw to buy your home doesn't have to be paid back.

Who can open an FHSA?

You must be:

  • a resident of Canada

  • at least 18 (19 in provinces where that's the age of majority) and no older than 71 on December 31 of the year you open it

  • a first-time home buyer. For opening an FHSA, that means you didn't live in a home you (or your current spouse or common-law partner) owned as your principal residence in the current calendar year or the previous four calendar years.

How much can you contribute?

  • $8,000 of participation room in the year you open your first FHSA, and up to $8,000 each year after that

  • Unused room can be carried forward, up to $8,000, to the next year (so up to $16,000 in a single year)

  • $40,000 lifetime limit

  • Over-contributions are generally taxed at 1% per month while they stay in the account

Your FHSA room is shown in your CRA My Account and on your latest Notice of Assessment.

Using it to buy your home

A qualifying withdrawal to buy or build a qualifying home in Canada is not taxable. You can also use the FHSA and the Home Buyers' Plan for the same home, as long as you meet the conditions of each.

How long can the account stay open?

Until December 31 of the year of the earliest of:

  • the 15th anniversary of opening your first FHSA

  • the year you turn 71

  • the year after your first qualifying withdrawal

What if you don't buy a home?

You can generally transfer the funds to your RRSP or RRIF without immediate tax (it's taxed when you eventually withdraw it from the RRSP/RRIF). If you withdraw the money for anything other than a qualifying home, it's taxable.

How the FHSA fits into your mortgage plan

The FHSA works best when it's part of a plan, not a last-minute scramble. Things like when to open the account, how it works alongside your RRSP and the Home Buyers' Plan, and how the funds show up in your down payment documentation are worth sorting out before you start shopping.

Before you start looking at houses, let's figure out the mortgage. Let's start a conversation

Official sources

This page is general information, not tax advice. Talk to your financial advisor or accountant about your situation.