Tax Guide/Saving and investing
First Home Savings Account (FHSA)
Updated November 4, 2026
A First Home Savings Account gives a deduction like an RRSP, and a qualifying home withdrawal is tax-free like a TFSA.
| Feature | RRSP | TFSA | FHSA |
|---|---|---|---|
| Deductible | Yes | No | Yes |
| Growth taxed yearly | No | No | No |
| Withdrawal | Taxed | Tax-free | Tax-free for a qualifying home |
Rules
- Limits: $8,000 a year and $40,000 for life. Up to $8,000 of unused room can carry forward.
- Room starts when you open it, so opening one early matters.
- Who qualifies: Canadian residents aged 18 or older who are first-time buyers under the program's test.
- Time limit: the account generally ends 15 years after opening, at age 71, or the year after your first qualifying withdrawal.
- If you do not buy: savings can move tax-free to an RRSP or RRIF, without using RRSP room.
- Deadline: there is no 60-day period. Contributions count for the calendar year.