The FHSA is built for first-time home buyers, combining an RRSP-style tax deduction on contributions with TFSA-style tax-free withdrawals for a qualifying home purchase.
The annual contribution limit is $8,000, with a $40,000 lifetime cap; unused room carries forward up to $8,000 (so the most contributable in a single year is $16,000).
The account can stay open up to 15 years or until age 71.
- Annual limit
- $8,000
- Lifetime limit
- $40,000
- Max in a single year
- $16,000
- Account lifespan
- 15 years
$8,000 annual plus up to $8,000 carried forward
Or until age 71, whichever comes first
Why it beats using an RRSP or TFSA alone
The FHSA is the only registered account that gives you a deduction on the way in and tax-free growth on the way out. An RRSP gives you the deduction but the Home Buyers’ Plan withdrawal has to be repaid. A TFSA gives you the tax-free withdrawal but no deduction.
For a first-time buyer who qualifies, funding an FHSA first is usually the strongest move available — and you can hold one alongside a TFSA and an RRSP, using all three.
The carry-forward rule is narrower than a TFSA
Unused FHSA room does not stack indefinitely. You can carry forward a maximum of $8,000 from the previous year, which is why the most you can ever put in during a single year is $16,000. Skipping several years does not let you catch up on all of it at once.
Room only begins accumulating once you open the account, so opening one early — even with a small initial contribution — starts the clock.
Worth checking before you decide
- Open the account as early as you qualify, since room only starts accruing once it exists
- You must be a first-time home buyer and a Canadian resident aged 18 or older to open one
- If you do not end up buying, funds can be transferred to an RRSP or RRIF without using RRSP room
- The account must be closed by December 31 of the year following your first qualifying withdrawal
Common questions
What counts as a first-time home buyer?
Generally, you cannot have lived in a home you or your spouse owned in the current year or any of the four preceding calendar years. Confirm your own eligibility before opening the account.
Can I use the FHSA and the Home Buyers’ Plan together?
Yes. The two can be combined for the same qualifying home purchase, which meaningfully increases the down payment available.
What if I never buy a home?
Unused funds can be rolled into an RRSP or RRIF on a tax-deferred basis without consuming RRSP contribution room. Withdrawing them as cash instead makes them taxable.
Important
This page provides general information only and is not personalized financial, tax, or legal advice. Product features, availability, and eligibility vary by provider. Figures shown are for the 2026 tax/benefit year and are subject to change — book a conversation with Supriya to confirm what applies to your situation.
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