• Housing
• Buy a Home
• Costs and Financing

What is the First Home Savings Account (FHSA)?

The First Home Savings Account (FHSA) is a registered investment plan that allows you to save for your first home in Canada.

The FHSA can help you in four main ways:

• Money you put into, or contribute to, the account is tax-deductible
• Money you take out, or withdraw, for the purchase of your first home is not taxable
• Interest earned is not taxable in this account
• You can move the unused contribution room to the next tax year

Who is eligible for the FHSA?

To open a TFSA, you must:

• Be between 18 and 71 years old
• Reside in Canada;
• Intend to buy your first home;

You and your spouse or partner cannot have owned your principal, or main, residence in the past four calendar years.

An FHSA is an individual account and cannot be opened jointly with your spouse. However, you can combine your two TFSAs for your down payment.

How much can I contribute?

You can contribute up to $8,000 per year. The maximum amount you can contribute is $40,000 in your lifetime.

You can carry forward any unused contribution room to the following year, up to an additional $8,000, for a maximum annual contribution of $16,000.

The FHSA is valid for 15 years and can be used only once toward a qualifying home purchase withdrawal.

What other options and additional assistance are available?

The Home Buyers' Plan (HBP)

The HBP is a federal government program that allows you to purchase your first home.

You can use up to $60,000 from your RRSP (Registered Retirement Savings Plan) to purchase a home, tax-free. You must repay the withdrawn amount within 15 years.

Some RRSPs that are locked-in or part of a group RRSP plan do not allow you to make a withdrawal from them.

The Tax-Free Savings Account (TFSA)

The TFSA is a registered savings plan that allows you to save tax-free for any type of short-, medium-, or long-term project.

The annual contribution limit changes each year. You can carry forward your unused contribution room to the following year.

Other Assistance

Additional assistance may be available depending on your situation, such as municipal land transfer tax rebates and provincial refunds. You can read more about this in the article Are there any incentives or tax breaks for buying a home?

What if I don't use my FHSA to buy a property?

If you're not using your FHSA funds to buy your first home, you have other options. 

You can move your money into:

• an RRSP (Registered Retirement Savings Plan) without paying extra taxes;
• an RRIF (Registered Retirement Income Fund (RRIF) without paying extra taxes;
• a regular bank account, but you will pay taxes on this.

For More Information

• First Home Savings Account (FHSA) - A tool to understand the FHSA. From the Canada Revenue Agency.
• How the First Home Savings Account (FHSA) works - Information on how the FHSA works. By the Ontario Securities Commission.
• Definitions for FHSAs - The glossary explains terms and expressions used online, in forms, and in guides.
• Financial Goal Calculator - A calculator to help you learn how to manage your debt and savings goals. From the Financial Consumer Agency of Canada.
• Are there any incentives or tax breaks for buying a home? - An article from Settlement.Org.