A registered account that combines RRSP-style tax deductions with TFSA-style tax-free withdrawals to save for your first home.
The FHSA lets qualifying first-time buyers contribute up to $8,000 per year (lifetime limit $40,000). Contributions are tax-deductible and qualifying withdrawals to buy a first home are completely tax-free — the best of both an RRSP and a TFSA.
| ✓ Canadian resident, age 18+ (and under 72) |
| ✓ A first-time home buyer (you/your spouse did not own a home you lived in this year or the prior 4 calendar years) |
| ✓ Have a valid SIN |
| ★ Contribute up to $8,000/year, $40,000 lifetime |
| ★ Contributions reduce your taxable income (like an RRSP) |
| ★ Withdrawals for a first home are tax-free (like a TFSA) |
| ★ Unused room carries forward (up to $8,000) |
| ★ Can be combined with the RRSP Home Buyers' Plan |
| → Open an FHSA at a participating bank or brokerage |
| → Contribute and invest the funds |
| → When buying, request a qualifying withdrawal with Form RC725 |
Common questions about this program.
Yes — as of 2024 you can use both for the same home purchase, dramatically increasing your tax-advantaged down payment.
You can transfer FHSA funds tax-free to your RRSP/RRIF (without using RRSP room), or withdraw them as taxable income.
Contact Tej Thakor, Broker of Record at Royal LePage Terra Realty, for professional real estate guidance across the GTA and surrounding areas — in English, Hindi & Gujarati.
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