First Home Savings Account (FHSA)
A Canadian tax-advantaged account for first-time home buyers — up to $8,000 in annual contributions ($40,000 lifetime) with tax-deductible deposits and tax-free qualifying withdrawals.
The First Home Savings Account (FHSA) launched in April 2023 as Canada's newest first-time home buyer tax-shelter account. You can contribute up to $8,000 per year (with carry-forward room), up to a $40,000 lifetime limit. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals for a first home purchase are tax-free (like a TFSA). The FHSA can be combined with the RRSP Home Buyers' Plan (HBP), giving first-time buyers access to up to $105,000 in tax-advantaged funds for a down payment ($40K FHSA + $60K doubled HBP + FHSA growth).
Related Terms
A federal program allowing first-time buyers to withdraw up to $60,000 from their RRSP tax-free toward a home purchase, repayable over 15 years.
The upfront portion of a home purchase paid from your own funds — minimum 5% on the first $500K, 10% on the portion above (up to $1.5M insured cap).
Related Guides
Related FAQs
- What role does mortgage insurance play in first-time homeownership?
- What is the new First-Time Home Buyers' GST/HST Rebate (Bill C-4)?
- Who qualifies as a first-time buyer for the new GST/HST Rebate?
- Can a borrower use the 'First-Time Buyer' 30-year amortization?
- How does Eco Plus impact the 30-year amortization for first-time buyers?