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FHSA

Save for Your First Home Tax-Efficiently

What is a FHSA?

The First Home Savings Account (FHSA) is a Canadian registered account that helps first-time homebuyers
save for their first home tax-efficiently. Contributions are tax-deductible, and withdrawals for your first home
are tax-free.

How It Works:

  • Annual contribution limit: $8,000
  • Lifetime contribution limit: $40,000
  • Tax benefits: Contributions are tax-deductible; growth and withdrawals for a first home are tax-free
  • Eligible withdrawal: Funds must be used to purchase your first home; otherwise, taxes apply
  • Carry-forward: Unused annual contribution room can be carried forward to future years

FAQs:

Can I contribute to both FHSA and RRSP for a first home?

 Yes, withdrawn amounts are added back to contribution room the following year.

What happens if I don't buy a home

Contributions can be transferred to RRSP without tax penalty or withdrawn (subject to tax on withdrawal).

Are there age restrictions?

Yes, you must be 18+ to open an FHSA. Contributions can continue until age 71 or until first home purchase.

Can I invest in stocks or ETFs within FHSA?

Yes — most Canadian financial institutions offer FHSA investments including GICs, mutual funds, ETFs,
and savings accounts.

Who It's For:

  • First-time homebuyers (never owned a home in Canada)
  • Canadian residents 18+ with a valid SIN

Benefits:

  • Tax savings now: Reduce your taxable income each year you contribute
  • Tax-free growth: Investments inside FHSA grow tax-free until withdrawal
  • Flexibility: Can combine with RRSP or TFSA strategies
  • Dedicated home savings: Encourages disciplined saving toward your first home purchase