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Your Key to Homeownership


First Home Savings Account (FHSA)

The tax-free way to save for your first home

What is an FHSA?

FHSA is a tax-advantaged registered savings account designed to help first-time homebuyers save for a down payment. It combines some aspects of an RRSP and TFSA. Contributions to an FHSA are tax deductible, and withdrawals and income gains are tax-free when used to buy a first home.

Contribution Guidelines

You have the flexibility to save for a home on your timeline, whether you plan to become a homeowner soon or in a few years.

  • The lifetime contribution limit is $40,000
  • Contribute annually up to $8,000 tax-free
  • Unused contribution room of up to $8,000 can carry over to the following year
  • Account can remain open for a maximum of 15 years, or the year you turn 71, whichever comes first


  • You have to be a resident of Canada
  • You must be at least 18 years of age
  • In the year you open an FHSA or in the previous four years, you or your spouse have not lived in a home that either of you owned

Qualifying Investment Options 

You can hold various investments in an FHSA including:

  • Savings Account
  • GICs
  • Mutual Funds
  • Stocks


Ready to buy your first home? Your contributions and income gains are tax-free when you meet the FHSA withdrawal conditions:

  • You must be a first-time homebuyer
  • The qualifying home must be in Canada
  • You need a written agreement to buy or build a property before October 1 of the year following your first withdrawal
  • You intend to live in the qualifying home as your principal residence within one year of buying or building it

Frequently Asked Questions

What happens to my FHSA funds if I don’t buy a home?

The funds in a FHSA grow tax-free and the withdrawals are tax-free if you meet the conditions to buy a qualifying home.

If you don’t buy a home, you can:

  • Withdraw funds - funds not used to purchase a qualifying home are subject to income tax.
  • Transfer funds - funds in your FHSA not used to purchase a qualifying home can be transferred to an RRSP. This allows you to continue saving for retirement and preserve the tax benefits of the FHSA.

Can I hold an FHSA with my spouse?

No, the FHSA is an individual account and can’t be held jointly with another person. You and your spouse can each open an FHSA provided you are both first-time homebuyers.

What happens if I overcontribute to my FHSA?

If you contribute more than the allowed amount to your FHSA, you will incur a 1% penalty on the excess contribution. This penalty will continue until you either withdraw the extra amount or wait for additional contribution room to become available, eliminating the excess.