First Home Savings Accounts (FHSA)

What’s a FHSA?

A First Home Savings Account (FHSA) is an exciting new registered plan that lets you save tax-free for a down payment on your first qualifying home.

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How it works?

Annual contribution limit


Lifetime contribution limit


Maximum holding period

15 years*

Taxes owed


Eligible contributors can save up to $40,000 (maximum of $8,000 per year) tax-free into their FHSA.

All contributions into the FHSA are tax-deductible – like a Registered Retirement Savings Plan (RRSP) – and there’s no tax implications when you’re ready to withdraw.

Just remember, the money in your FHSA must be used within 15 years to buy your first home.

What is a qualifying home?

A qualifying home is a residential unit located within Canada. This includes both existing residential properties and those currently under construction. Eligible properties comprise single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as, apartments situated within duplexes, triplexes, fourplexes, or apartment buildings.

What is a first-time home buyer?

A first-time home buyer is, if in the last four years, you haven't lived in a home that you owned, or one that your current spouse or partner owned. This 'four-year period' simply means the four years before you buy your new home.

Why should I open an FHSA?

Save faster

Your savings can be used directly towards your home, without being taxed as income.

Reduce the tax you owe

You won't be taxed on the amount withdrawn to purchase a first qualifying home.


If you have any unused FHSA funds, they can be transferred, tax-free, to your RRSP or RRIF.

Is the First Home Savings Account Right for You?

  • You’re a Canadian Resident: the FHSA is designed exclusively for Canadian residents, providing them with a unique opportunity to save for their first home.
  • You are 18 – 71 years old: To open an FHSA, you must have reached the age of majority in the province where the account is set up and be less than 72 years old.
  • You’re a first-time home buyer: the FHSA is tailored to those who are taking their first step into homeownership, helping them achieve their dream of having a place to call their own. You’re considered a first-time homebuyer, for the purposes of this plan, if you haven’t owned a home within the last four calendar years.
  • You want tax-free savings: the FHSA allows your savings to grow tax-free over time with the added benefit of being able to withdraw all the funds tax-free when you're ready to purchase your first home.
  • You're going to be the primary resident of the home within one year after buying or building it.

Expert Tip: Please be aware of the contribution limits for your FHSA. Any additional contributions beyond these limits may incur a monthly tax of 1%

Saving for a down payment? Here’s how an FHSA compares to TFSA and RRSP and the Home Buyers’ Plan (HBP).

The FHSA combines the best part of both an RRSP, where your contributions are tax deductible and a TFSA, where your investments grow tax-free.

Contributions are tax‑deductibleYes No Yes
Qualifying withdrawals are tax‑freeYes Yes Yes
Withdrawals don't need to be paid backYes Yes No

Expert tip: Leverage the savings from your FHSA, TFSA and RRSP (with the HBP) to become a homeowner even sooner.

Getting the most out of your FHSA

Here are some scenarios in which the FHSA will become extremely valuable:

  • Professionals renting today

  • Young homebuyers receiving financial assistance from their parents

  • Common-law partners

  • Family with low income

Not sure what you can afford?

Crunch the numbers, determine your estimated monthly payments and compare scenarios that could help you pay off your mortgage faster.

Mortgage Calculator

Ready to open your FHSA?

If you're ready to speak to an advisor, give us a call or book an appointment online. We'd be happy to talk more about the steps to buying your home.

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Frequently Asked Questions

  • What is a first-time home buyer?

  • What is a qualifying home?

  • Can I open more than one FHSA?

  • Can I transfer funds from my RRSP into my FHSA?

  • If I don’t make the maximum annual contribution of $8,000, does the leftover amount carry over into the next year?

  • My partner and I both have a FHSA. Can we combine them for the purchase of our home?

  • What if I need to withdraw the funds in my FHSA for a purpose other than purchasing my first home?

  • What happens if I don’t use the funds in my FHSA within 15 years?

  • How is a FHSA different than the Home Buyers’ Plan (HBP)?