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The First Home Savings Account (FHSA) is a registered savings account that lets eligible first-time buyers contribute up to $8,000 per year, to a $40,000 lifetime limit, with contributions tax-deductible and qualifying withdrawals tax-free.
The FHSA combines an RRSP-style tax deduction on contributions with a TFSA-style tax-free withdrawal, provided the funds go toward a qualifying first home. Contribution room builds only after the account is opened, and unused room can carry forward, which is why brokers and agents often suggest opening one well before a client is ready to buy.
Unlike the Home Buyers’ Plan, a qualifying FHSA withdrawal doesn’t need to be repaid. The two programs are commonly used together: FHSA savings and an HBP withdrawal can both be applied to the same down payment.
$8,000/year, $40,000 lifetime: the FHSA's contribution limits, per the Canada Revenue Agency.
Tax-free withdrawals for a qualifying first home: unlike an HBP withdrawal, a qualifying FHSA withdrawal doesn’t need to be repaid.
Can stack with the HBP: funds from a Home Buyers’ Plan withdrawal and an FHSA can both go toward the same down payment.
Opened at most Canadian financial institutions: mortgage agents, brokers, associates, and courtiers hypothécaires can flag it early, since contribution room only builds after the account is opened.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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