Canada's First Home Savings Account
The account that cuts your taxes and builds your down payment.
Contributions are deductible like an RRSP. Withdrawals for your first home are tax-free like a TFSA. Here is how the FHSA actually works, without the bank brochure language.
Figures apply to 2026. The $8,000 annual limit is not indexed to inflation.
The guides
Six pieces that cover the whole accountWhat is an FHSA?
Who can open one, how it works, and why it beats saving in a regular account for most first-time buyers.
02Contribution limits & carry-forward
The $8,000 / $40,000 rules, the carry-forward cap that catches people out, and the 1% penalty.
03Withdrawal rules
What makes a withdrawal tax-free, the 30-day window, Form RC725, and what happens if you never buy.
04The FHSA tax deduction
How the deduction works, why you can delay claiming it, and what it is worth at your tax bracket.
05FHSA vs TFSA vs RRSP
Which account to fill first, and how to stack the FHSA with the Home Buyers' Plan.
06FHSA calculator
Estimate your tax refunds and projected balance by the year you plan to buy.
If you read nothing else
Open the account this year, even with $0 in it.
FHSA contribution room only starts building once you open your first account. Opening one in December still gives you the full $8,000 for that year, and anything you don't use carries forward, up to $8,000.
How room builds up- You must be a Canadian resident, at least 18 (19 in some provinces), and no older than 71 at year-end.
- Neither you nor your spouse can have owned the home you lived in during this year or the previous four.
- Contributions must be made by December 31. There is no 60-day grace period like the RRSP.
- If you never buy, move the money to your RRSP tax-free without using RRSP room.