FHSA — First Home Savings Account

Deduct it like an RRSP. Withdraw it like a TFSA.

Q: What is an FHSA, in plain language?

A First Home Savings Account combines both tax advantages: contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home, including all growth, are tax-free like a TFSA.

Q: Who qualifies to open one?

Eligibility requires Canadian residency, being at least the age of majority and under 72, and first-time buyer status, meaning neither you nor your spouse or common-law partner owned and occupied a home in the current year or the four preceding calendar years.

Q: How much can I contribute?

The FHSA annual limit is $8,000 with a $40,000 lifetime maximum. Unused room carries forward to a maximum of $8,000, so the most that can be contributed in any single year is $16,000. Contributions count for the calendar year with a December 31 deadline.

Q: Should I open one even if I can’t contribute yet?

Yes. FHSA contribution room only begins accumulating after the account is opened, so opening early, even with no deposit, creates carry-forward room for future years.

Q: What if I never end up buying a home?

If no qualifying home purchase occurs, the FHSA balance can be transferred tax-free to an RRSP or RRIF without using RRSP contribution room. The account can remain open up to 15 years or until the end of the year the holder turns 71.

Q: Can I combine the FHSA with the Home Buyers’ Plan?

A qualifying FHSA withdrawal can be combined with a Home Buyers’ Plan withdrawal of up to $60,000 from an RRSP on the same qualifying home purchase. HBP amounts must be repaid, while FHSA withdrawals are never repaid.

Q: What can I hold inside an FHSA?

An FHSA can hold various investments. Segregated fund FHSAs are insurance-based investments that may offer maturity and death benefit guarantees and named beneficiary designations per the contract, generally with higher fees than comparable mutual funds.

The First Home Savings Account is the only Canadian account with both tax breaks at once — a deduction going in, and a tax-free withdrawal (growth included) when you buy your first home.

The basics

What is an FHSA, and how does the room work?

You can contribute $8,000 a year, up to $40,000 lifetime — contributions are tax-deductible, and a qualifying first-home withdrawal comes out entirely tax-free.

Two quirks decide how much room you actually have: unused room carries forward only up to $8,000 (so the most you can contribute in any single year is $16,000), and room only starts building after you open the account. That’s why the single smartest FHSA move is opening one early — even with $0 in it.

Deduct going in

Contributions reduce your taxable income — the refund arrives like an RRSP’s.

Tax-free coming out

A qualifying first-home withdrawal — contributions and all growth — is never taxed.

Nothing wasted

Never buy? Transfer everything to your RRSP tax-free — without using RRSP room.

Free FHSA calculator

Your room, your refund — and your down payment.

Three answers in one place: how much you can contribute now, what the tax refund looks like, and what steady saving grows into by house-hunting day.

Year you opened (or will open) your FHSA 2024

Room only starts once the account is open — opening early is free future room.

Total contributed so far $8,000

Include any transfers in from your RRSP — they use FHSA room too.

Estimated room available in 2026

2026 annual limit$8,000

Carry-forward (capped at $8,000)$0

Lifetime cap remaining ($40,000 max)$0

If you contribute this year $8,000

Your marginal tax rate 43%

Combined federal + provincial rate on your top dollar — confirm yours with your accountant.

Estimated tax refund

Saving monthly from here $650 / month

$8,000 a year works out to about $667 a month.

Years until you buy 5 years

Assumed annual return 5%

Projected down-payment fund

This estimator runs entirely in your browser — we don’t store or see your numbers. It uses CRA 2026 FHSA rules ($8,000 annual, $40,000 lifetime, carry-forward capped at $8,000, room from the year of opening) and simplifies within-year timing; deposits in the projection stop at the $40,000 lifetime cap while growth continues. The refund figure is a simplified estimate at the rate you select. Not financial or tax advice — your official room is in CRA My Account.

Talk through my numbers → Compare with the RRSP

Common questions

FHSA questions first-time buyers ask

What is an FHSA, in plain language?

A First Home Savings Account gives you both tax breaks at once: contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home come out tax-free like a TFSA — growth included. It’s the most tax-advantaged account a first-time buyer can hold.

Who qualifies to open one?

You must be a Canadian resident, at least 18 (age of majority in your province), under 72, and a first-time buyer — meaning neither you nor your spouse or common-law partner owned a home you lived in during the current year or the four preceding calendar years. Sold years ago and renting since? You may qualify again.

How much can I contribute?

$8,000 a year, $40,000 lifetime. Unused room carries forward — but only up to $8,000 — so the most you can put in during any single year is $16,000. One more quirk: unlike an RRSP there’s no first-60-days grace period — contributions count for the calendar year, deadline December 31.

Should I open one even if I can’t contribute yet?

Yes — this is the FHSA’s biggest trick. Room only starts accumulating after you open the account. Open it with $0 today and next year you’ll have $16,000 of room waiting; wait, and you get $8,000. Opening early costs nothing and buys future room.

What if I never end up buying a home?

The money isn’t lost. You can transfer the full balance to your RRSP or RRIF tax-free — and it doesn’t use up any RRSP room. The account can stay open for up to 15 years (or until the end of the year you turn 71); after that, it effectively becomes retirement savings.

Can I combine the FHSA with the Home Buyers’ Plan?

Yes — both, on the same purchase. A qualifying FHSA withdrawal can be paired with up to $60,000 from your RRSP under the Home Buyers’ Plan. The difference: the HBP is a loan from yourself that must be repaid; the FHSA never has to be paid back.

What can I hold inside an FHSA?

An FHSA is a container — what’s inside drives the growth. As a licensed advisor I work with segregated fund FHSAs: insurance-based investments that can offer maturity and death-benefit guarantees and a named beneficiary, per the contract — with fees typically higher than comparable mutual funds. That trade-off is a real conversation, and the free call is where we have it.

Let’s talk

The first home is a family plan too.

A free, no-pressure call: your real FHSA room, whether FHSA or RRSP deserves the next dollar, and — for parents — how the house fund and the education fund fit together.

Book a free call →

Harpreet Singh · Licensed advisor (LLQP, Ontario) · Proudly Canadian. This page and its calculator are general information only — not financial, investment, insurance, or tax advice, and not a quote. FHSA rules, limits, eligibility, and the conditions for a qualifying tax-free withdrawal (including the written purchase agreement and principal-residence requirements) are set by the Government of Canada and may change; 2026 figures are per CRA and your personal room is available through CRA My Account. Projections are illustrations at a constant assumed rate and are not guarantees; returns vary and can be negative. Segregated funds are insurance contracts; guarantees and beneficiary designations are subject to the contract, and fees are generally higher than comparable mutual funds. Segregated fund investments are offered under an LLQP licence; other investment products may require a different licence and would be referred. Speak with a qualified advisor about your own situation.

Written and reviewed by

Harpreet Singh

Licensed Advisor · LLQP, Ontario

Harpreet is a licensed insurance and education-savings advisor based in Ontario, Canada. He helps families understand RESPs in plain language, claim every government grant they qualify for, and protect the plan with the right coverage — with straight answers and no pressure. More about Harpreet →

Reviewed July 2026 Figures per Canada.ca / CRA LinkedIn Book a free call