FHSA — First Home Savings Account
The FHSA (First Home Savings Account) is a Canadian account launched in 2023. It combines the two best tax benefits: tax deduction like an RRSP, AND tax-free withdrawals for first-home purchase like a TFSA.
Essential FHSA Rules
- Annual limit: $8,000
- Lifetime cap: $40,000
- Unused room: carries up to additional $8,000/year
- Usage deadline: 15 years after opening, otherwise mandatory transfer to RRSP
- Eligibility: Canadian resident, 18+, didn't own a principal residence in past 4 years (you OR your spouse)
Combination with other accounts
Since 2024, you can combine FHSA and RRSP HBP on the same property. Total possible: $40,000 (FHSA) + $60,000 (HBP) = $100,000 down payment tax-free.
Eligible investments
Same investments as TFSA or RRSP: stocks, ETFs (XEQT, VFV, ZEQT), bonds, GICs, mutual funds.
Frequently Asked Questions
Is FHSA tax-deductible?
Yes. Contributions are deductible from taxable income, like RRSP.
Is FHSA tax-free on withdrawal?
Yes, for eligible first-property purchase (like TFSA).
What if I don't buy?
Max 15 years after opening, mandatory transfer to RRSP (without touching RRSP room).
Can I have FHSA + RRSP HBP?
Yes since 2024. Combined, up to $100,000 down payment tax-free.
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