First Home Savings Account (FHSA)

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Introduction to FHSA

An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.

Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns.

You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA

first home savings account (fhsa)



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Eligibility criteria

  • Must be a Canadian resident.
  • Must be of legal age in your province of residence.
  • Must not be over 71 years of age as of December 31 of the current year.
  • Must not have had a qualifying home in Canada as your principal place of residence that you or your spouse owned during the part of the calendar year preceding the opening of the FHSA or during the preceding four calendar years.
eligibility criteria


  Key advantages of the FHSA

As with an RRSP, your FHSA contributions reduce your annual taxable income.

Your savings and returns generated in the FHSA are tax free upon withdrawal.

You can carry forward up to $8,000 of unused contribution room, for a maximum annual contribution of $16,000.

You can transfer funds from your FHSA to your RRSP or your RRIF if you are not using them.

Unlike RRSP withdrawals under the Home Buyers’ Plan (HBP), sums withdrawn from an FHSA for the purchase of a first home do not have to be repaid.


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