What is the FHSA in practical terms?
The First Home Savings Account combines key RRSP and TFSA advantages in one account built for a first home purchase.
Contributions are tax-deductible, growth stays sheltered from tax, and qualifying withdrawals for a first home are tax-free with no repayment.
For a first-time buyer in Quebec, every year without an FHSA can mean one less year of deductions and compound growth.
Annual room
CAD 8,000
per calendar year
Lifetime room
CAD 40,000
per person
Core FHSA rules
You can contribute up to CAD 8,000 per calendar year to the FHSA.
Total contributions can never exceed CAD 40,000 per person.
You must be at least 18 and a Canadian resident to open the account.
You must not have owned a principal residence during the last 4 calendar years.
The account generally needs to have been open for at least one year before a qualifying withdrawal.
The account must be closed no later than 15 years after opening or at age 71.
FHSA + Home Buyers' Plan strategy
The FHSA and the Home Buyers' Plan can be used together to build a stronger down payment without immediate tax.
FHSA vs TFSA vs RRSP
The FHSA combines benefits of both other accounts, but only for a qualifying first-home purchase.
| Criteria | FHSA | TFSA | RRSP |
|---|---|---|---|
| Tax-deductible contribution? | Yes | No | Yes |
| Tax-free growth? | Yes | Yes | Yes |
| Tax-free withdrawal? | For a qualifying purchase | Always | No |
| Annual room | CAD 8,000 | CAD 7,000 (2026) | 18% of income (max CAD 32,490) |
| Lifetime room | CAD 40,000 | None | None |
| Room restored after withdrawal? | No | The following year | No |
| Best use | First home purchase | Flexible savings | Retirement and deduction |
FHSA calculator
Estimate accumulated savings and potential tax savings based on how much you plan to contribute.
Rough benchmark: GICs around 4%, diversified index portfolios often around 6 to 7% over long periods.
Estimated results
Indicative estimate using an average 37% marginal tax rate in Quebec. Your actual rate depends on income, and unused FHSA room does not behave like TFSA room.
Frequently asked questions
Who can open an FHSA?
A Canadian resident aged 18 or older who has not owned a principal residence during the last 4 calendar years.
Can you combine the FHSA and the Home Buyers' Plan?
Yes. It is often the strongest way to build a larger down payment for a first home.
What if you do not buy a home?
The balance can generally be transferred to an RRSP or RRIF without immediate tax before the account deadline.
Which institutions offer the FHSA?
Most major banks and several online brokerages offer it, with varying fees and investment menus.