FHSA Canada 2026
Save up to $40,000 tax-free for your first home with the First Home Savings Account.
What is the FHSA?
The First Home Savings Account (launched 2023) combines the best of both worlds: contributions are tax-deductible like an RRSP, and qualifying withdrawals are tax-free like a TFSA. It exists for one purpose — helping first-time buyers save a down payment.
Watch our 4-minute explainer:
2026 limits
| FHSA | |
|---|---|
| Annual contribution limit | $8,000 |
| Lifetime contribution limit | $40,000 |
| Unused room carries forward? | Yes — up to $8,000 extra, so max $16,000 in one year |
| Qualifying withdrawal | Tax-free |
| Non-qualifying withdrawal | Taxed as income (like an RRSP) |
The limits are fixed — unlike RRSP room, they are not indexed to inflation or tied to your income.
Who can open one?
- 18 or older and a Canadian resident.
- First-time home buyer: you (and your spouse/common-law partner) must not have owned a home you lived in during the current year or the previous 4 calendar years.
- You must close the account by the earlier of: the year you turn 71, or the 15th anniversary of opening it. Unused savings can be transferred to an RRSP tax-free.
What counts as a qualifying withdrawal?
- You buy a qualifying home in Canada and intend to live in it as your principal residence within one year of purchase.
- You must be a first-time buyer at the time of the withdrawal.
- You cannot use both an FHSA qualifying withdrawal and the RRSP Home Buyers' Plan (HBP) for the same home — pick one.
- The withdrawal must happen within 30 days after you move in (you can withdraw before closing).
FHSA vs TFSA vs RRSP for a down payment
| FHSA | TFSA | RRSP (HBP) | |
|---|---|---|---|
| Tax deduction on contributions | Yes | No | Yes |
| Tax-free withdrawal for a home | Yes | Yes | Yes (must repay over 15 years) |
| Lifetime cap for housing | $40,000 | Your TFSA room | $35,000 (HBP) |
| Best when | Saving specifically for a first home | You want flexibility | You already have RRSP room |
If a first home is the goal, fund the FHSA first — it is the only account with both a deduction and a tax-free exit.
Related tools
Mortgage Calculator · TFSA Calculator · RRSP Calculator · Ontario Salary Calculator · TFSA vs RRSP 2026
FAQ
Can I open an FHSA if I already own a home?
No — you must be a first-time buyer, meaning neither you nor your spouse/common-law partner owned a home you lived in during the current year or the previous 4 calendar years.
What happens if I never buy a home?
You can transfer the balance to your RRSP (or RRIF) tax-free without using RRSP contribution room, or withdraw it and pay tax like a normal RRSP withdrawal.
Can I carry forward unused FHSA room?
Yes, but only up to $8,000 of unused room carries forward, so the most you can contribute in any single year is $16,000.
Are these official CRA rules?
No. This site is an educational resource. Confirm eligibility and limits with CRA or your financial institution before acting.