FHSA: First Home Savings Account

The First Home Savings Account (FHSA) is a registered plan that helps first-time homebuyers in Canada save up to $40,000 tax-free for a down payment. It combines the best features of RRSPs and TFSAs — offering both tax-deductible contributions and tax-free withdrawals.

Your Fast Track to Homeownership

Introduced in 2023, the FHSA is designed to help Canadians overcome rising housing costs by offering a powerful, tax-advantaged way to save for their first home. It’s ideal for young professionals, couples, and anyone planning to buy their first qualifying property.

Key Benefits

  • Tax-Deductible Contributions
    Like an RRSP, contributions reduce your taxable income — up to $8,000 per year.
  • Tax-Free Withdrawals
    Like a TFSA, withdrawals used to buy a qualifying first home are completely tax-free.
  • Lifetime Contribution Limit
    You can contribute up to $40,000 total over your lifetime.
  • Carry-Forward Room
    Unused annual room carries forward, so you can catch up later.
  • Wide Investment Options
    Hold mutual funds, ETFs, GICs, stocks, and more — tailored to your timeline and risk tolerance.
fhsa

Eligibility

  • Must be a Canadian resident aged 18+.
  • Must be a first-time homebuyer (no home ownership in past 4 years).
  • Must have a valid Social Insurance Number (SIN).

What Counts as a “Qualifying Home”?

  • Must be located in Canada.
  • Must be intended as your principal residence .
  • Can be a detached house, condo, townhouse, or similar dwelling.

Transfers & Coordination

  • You can transfer funds from an RRSP to an FHSA (not tax-deductible).
  • You can also use the Home Buyers’ Plan (HBP) alongside the FHSA for additional savings.
  • If unused, FHSA funds can be transferred to your RRSP or RRIF tax-free.

Advisor Tip from Guriqbal Singh

"The FHSA is a game-changer for first-time buyers — combining tax relief with flexibility. I help clients structure contributions, choose the right investments, and coordinate with RRSPs and HBP to maximize their down payment strategy."

Ready to Start Saving for Your First Home?

Let’s build a personalized FHSA strategy that fits your timeline and goals.
Book a consultation today with O Canada Insurance Inc.

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