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First Home Savings Account

First Home Savings Account (FHSA)


Contribute $8000 Annually to a max of $40,000 towards your First Home Purchase.



  • This savings account is eligible to Canadian residents who are at least 18 years of age to a max of 71 years of age.

  • You are a first-time homebuyer - you and/or your spouse or common-law partner have not owned a home where you lived in the year in which you open the account or at any time in the previous four years.

  • Allows you to contribute tax-free for up to 15 years.

  • The maximum contribution is $8,000 annually, plus up to $8,000 of your unused contribution room*. (starting from the date the account was opened)

  • (*You can carry forward any unused FHSA contribution room from the prior years up to a maximum of $8,000 (subject to your lifetime contribution limit of $40,000). Therefore, if you contribute less than $8,000 in a given year, you can contribute the unused amount in a subsequent year in addition to the $8,000 annual contribution limit for that year.)

  • Maximum lifetime contribution limit is $40,000.

  • Setting up automatic contributions can help you stay on track.

  • Can hold multiple FHSA Accounts, total cannot exceed $40,000

  • Contributions are Tax Deductible

  • Withdrawals to purchase a home are non-taxable

  • Interest earned is tax free

What happens if you don't use your FHSA funds?

  • Withdraw your funds and pay tax at your applicable tax rate, or transfer to your RRSP or RRIF tax free and pay tax on withdrawal at retirement income tax rate

    • Transferred funds do not reinstated the contribution room of the FHSA

    • Transferred funds into an RRSP do not reduce contribution room, nor are they limited by their available contribution room


Can you carry forward undeducted contributions?

  • Yes, like an RRSP, you can carry forward indefinitely and deduct contributions in later years.

Where can I get more information about using this program? 



The CRA encourages taxpayers to check its Web site often—all new forms, policies, and guidelines are posted there as soon as they become available.

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