FHSA — First Home Savings Account
Last updated April 24, 2026 · By Evermore Private Wealth · Registered Account
FHSA — First Home Savings Account. The First Home Savings Account (FHSA) is a Canadian registered account introduced in April 2023 that combines the best features of an RRSP and a TFSA for first-time home buyers. Contributions are tax-deductible (like an RRSP), growth is tax-sheltered, and qualifying withdrawals to buy a first home are entirely tax-free (like a TFSA).
Source: CRA, FHSA Rules
Source: CRA
Source: Income Tax Act, s. 146.6
How the FHSA works
You can open an FHSA if you are 18+ (or the age of majority in your province), a Canadian resident, and have not lived in a home you owned in the year you open the account or in the previous four calendar years. The annual room is $8,000 with a $40,000 lifetime cap. Unused annual room carries forward up to a maximum of $8,000 — unlike the TFSA, you cannot bank multiple years of unused room.
The account must be closed within 15 years of opening (or by December 31 of the year you turn 71, whichever comes first). If you do not buy a home, you can transfer the balance to your RRSP or RRIF without affecting your RRSP room — that transfer is the FHSA's quiet superpower.
Combining FHSA with the Home Buyers' Plan
You can use the FHSA and the RRSP Home Buyers' Plan (HBP) for the same home purchase. With the HBP limit raised to $60,000 in 2024, a couple maxing both tools could deploy $200,000 of tax-advantaged dollars ($40,000 FHSA × 2 + $60,000 HBP × 2) toward a down payment. This is the largest tax-supported first-home subsidy in Canadian history.
What this means for HNW Canadian families
For HNW families, the FHSA is mostly an inter-generational wealth-transfer tool. Open accounts for adult children with the contribution funded from the family balance sheet, take the deduction on the child's lower-income return for them to recover, and let the assets compound tax-free. If they never buy a home in 15 years, the entire balance rolls into their RRSP without touching their RRSP room — effectively creating a permanent extra registered shelter the parents helped fund.
Worked example — FHSA + HBP for a couple
A couple, both employed in Toronto, opens FHSAs in 2023 and contributes $8,000/year through 2027. They also build $60,000 each in their RRSPs. In 2028, they qualify for the HBP and FHSA simultaneously. They withdraw $40,000 + $60,000 = $100,000 each, deploying $200,000 of tax-advantaged capital against a Burlington home purchase. The FHSA portion is permanently tax-free; the HBP portion must be repaid to their RRSPs over 15 years.
Common Questions
Who qualifies for an FHSA?
You must be 18+ (age of majority in your province), a Canadian resident, and a first-time home buyer — meaning you have not lived in a home you (or your spouse/common-law partner) owned in the year you open the account or any of the previous four calendar years.
What is the FHSA contribution limit?
The annual limit is $8,000 with a $40,000 lifetime maximum. Unused annual room can be carried forward, but the carry-forward is capped at $8,000 per year — you cannot stockpile multiple years of room.
What if I never buy a home?
You can transfer the FHSA balance into your RRSP or RRIF tax-free, with no impact on your existing RRSP room. The transfer must happen by December 31 of the 15th year after opening, or by December 31 of the year you turn 71, whichever comes first.
Can I use the FHSA and the Home Buyers' Plan together?
Yes. Since 2023, FHSA withdrawals and HBP withdrawals can be combined on the same home purchase. With the HBP limit raised to $60,000, a couple can deploy up to $200,000 of registered savings toward a single first home.
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