FHSA
A tax deduction going in and tax-free growth coming out for your first home.
Book a free consultationAll servicesEverything to know about the FHSA
Who it is for
- First time home buyers
- Couples saving for a down payment
- Residents aged 18 or older who have not owned a home recently
- People who have used up their RRSP and TFSA room
How it works
- You open an FHSA and contribute up to the annual limit
- Contributions are tax deductible
- Qualifying withdrawals for a first home are tax free
- Unused room can carry forward, within limits
What affects the cost
- Annual and lifetime limits
- Fees on investments
- Rules on how long the account can stay open
- Tax rules if you do not buy a home
Common mistakes to avoid
- Not opening one early enough to start the clock
- Missing the qualifying home rules
- Forgetting you can combine it with the RRSP Home Buyers Plan
- Not planning where unused funds will go
A couple each open an FHSA and contribute every year, receiving tax refunds and tax free growth toward a down payment. Illustration only.
Questions people ask
Who is eligible for an FHSA?
Residents who are at least 18 and have not lived in a home they owned in the current or previous four calendar years, with other conditions.
What if I do not buy a home?
Funds can be moved to an RRSP or RRIF without using RRSP room, within the rules.
Can I use an FHSA and an RRSP together?
Yes. Many buyers use both for a larger down payment.
What it is
The First Home Savings Account combines the best of an RRSP and a TFSA: contributions are tax-deductible and qualifying withdrawals for a first home are tax-free. I help you open it, fund it and time it with your other savings.
How it works
Check eligibility
Canadian resident, at least 18, and a first-time home buyer.
Open the account
Open with a first contribution to start your room.
Contribute and deduct
Claim the deduction on your tax return.
Buy your home
Withdraw tax-free for a qualifying purchase.
Free calculators
Savings Growth
General education only, not personalized advice. Calculator by Ativa Interactive.Frequently asked questions
Who can open an FHSA?
A Canadian resident who is at least 18 and has not lived in a home they owned in the current year or the previous four calendar years.
How long can I keep it open?
Up to 15 years after opening, until you turn 71, or until the end of the year after your first qualifying withdrawal, whichever comes first.
What if I do not buy a home?
You can transfer the balance to your RRSP or RRIF without using your RRSP room, or withdraw it as taxable income.
Can I combine it with the Home Buyers’ Plan?
Yes. You can use both for the same purchase if you qualify.
Can my partner open one too?
Yes. Each eligible person has their own FHSA and limits.
FHSA, RRSP or TFSA first?
For a first home the FHSA is usually the strongest, but it depends on your income and goals. Book a call and I will run the numbers.
Talk to Manpreet about FHSA
A free, no-obligation call to find the right fit.
Book a free consultationOffered through MS Insurance Inc. by a licensed advisor in AB, SK, BC, NB, NS, QC, MB, ON and PEI. Information is general education, not personal advice. Product availability and rules vary by province.