YEAR
Annual participation room
$8,000
You generally receive $8,000 of room in the year you open your first FHSA.
2026 FHSA Guide
Save for your first home and reduce tax along the way.
A First Home Savings Account combines an RRSP-style tax deduction with TFSA-style tax-free qualifying withdrawals when the money is used to buy or build an eligible first home.
FHSA Essentials
The important FHSA numbers and rules at a glance
Understand when room starts, how much can be contributed and why opening the account early can matter.
MAX
Lifetime FHSA limit
$40,000
This generally includes both personal contributions and transfers made from your RRSP.
+
Carry-forward room
Up to $8,000
Unused participation room may generally be carried into the following year, up to the permitted maximum.
15Y
Maximum participation period
15 years
The clock begins when you open your first FHSA and may end sooner after a qualifying withdrawal or when you turn 71.
TAX
Eligible contribution deduction
Reduce income
Eligible personal FHSA contributions are generally deductible from taxable income.
1%
Excess amount tax
1% / month
Excess FHSA amounts may be subject to a monthly tax while the excess remains.
Two Tax Advantages
A powerful account designed specifically for a first home.
The FHSA can provide a deduction when you contribute and a tax-free withdrawal when all qualifying home-purchase conditions are met.
- Eligible personal contributions may reduce taxable income.
- Qualified investment growth remains tax-sheltered inside the account.
- A qualifying first-home withdrawal is not included in taxable income.
- Qualifying FHSA withdrawals do not need to be repaid.
- The FHSA and RRSP Home Buyers’ Plan may be used for the same qualifying home.
Contribution vs Transfer
Not all money entering an FHSA creates a new tax deduction
Personal FHSA contribution
- May be deductible within your available FHSA limits.
- Can be made from cash or other eligible personal funds.
- Uses FHSA participation room and counts toward the lifetime limit.
Direct RRSP-to-FHSA transfer
- Uses FHSA participation room and counts toward the lifetime limit.
- Does not create a new FHSA tax deduction.
- Does not restore the RRSP deduction room previously used.
Down-Payment Strategy
FHSA and Home Buyers’ Plan can work together
Where all eligibility conditions are met, an individual can make a qualifying FHSA withdrawal and also withdraw up to the current $60,000 HBP limit from an RRSP for the same qualifying home.
FHSA
FHSA withdrawal
Tax-free
Qualifying FHSA withdrawals do not need to be repaid to the account.
HBP
RRSP Home Buyers’ Plan
$60,000
The current HBP limit applies per eligible participant and generally requires repayment to the RRSP.
BOTH
Couples may multiply the opportunity
Per person
Each eligible spouse or partner may potentially use their own FHSA and HBP amounts for the same home.
Biggest mistake: waiting to open the FHSA until you are ready to buy
FHSA participation room does not begin accumulating simply because you are eligible. It starts only after you officially open your first FHSA. Opening earlier may allow room and investment time to build, provided the 15-year participation window fits your home-buying timeline.
What If You Do Not Buy?
Your FHSA savings may still support retirement
If the funds are not used for a qualifying first home, eligible property can generally be transferred directly to your RRSP or RRIF on a tax-deferred basis before the FHSA must close.
RRSP
Transfer to an RRSP
Tax-deferred
A qualifying direct transfer generally does not require available RRSP contribution room.
RRIF
Transfer to a RRIF
Retirement
Eligible FHSA property may be moved directly into your RRIF where applicable.
CASH
Take a taxable withdrawal
Included in income
A non-qualifying cash withdrawal is generally taxable in the year received.
When the FHSA Must End
Your maximum participation period ends at the earliest applicable date
YEAR
15th anniversary
Year 15
The FHSA generally ends by December 31 of the year containing the 15th anniversary of opening your first FHSA.
AGE
The year you turn 71
Age 71
The participation period ends no later than December 31 of the year you turn 71.
HOME
After a qualifying withdrawal
Following year
The period ends by December 31 of the year following your first qualifying withdrawal, if that date comes first.
Frequently Asked Questions
Common FHSA questions
Who can open an FHSA?
You generally must be a resident of Canada, meet the applicable minimum-age requirement, be 71 or younger at year-end, and satisfy the first-time home buyer conditions when opening the account.
Does FHSA room build before I open an account?
No. Your participation room begins in the year you open your first FHSA.
Can I have more than one FHSA?
Yes, but all FHSAs share the same personal participation room and lifetime limit.
Can someone else contribute to my FHSA?
Only the FHSA holder can make a contribution. Another person may give you money, but you must make the contribution and only you may claim the available deduction.
Can I use FHSA and HBP together?
Yes, provided you meet all conditions for each program at the time of withdrawal.
Do I repay an FHSA qualifying withdrawal?
No. Unlike the HBP, a qualifying FHSA withdrawal does not need to be repaid.
Learn with Lava
Book Free Consultation
Planning to buy your first home in the next few years?
Review your FHSA eligibility, available room, tax strategy, RRSP Home Buyers’ Plan, down-payment target and investment timeline in a focused complimentary consultation.