The smartest way to save for your first home in Canada.
The First Home Savings Account combines the best of an RRSP and a TFSA — your contributions reduce your taxes AND your withdrawals for a first home purchase are completely tax-free. Most Canadians have no idea this account exists. No sign-up required.
Max ~$667/month ($8k/year)
Up to $35,000 can be used via HBP
Max 15 years based on your age
The FHSA combines the best of an RRSP and TFSA — tax deduction on the way in and tax-free on the way out — but must be used to purchase a first home.
Total Saved
$60,340
Estimated Tax Refund
$12,000
Tax-Free Growth
$5,340
Target Reached
12.1%
Progress Towards Goal
$60,340 of $500,000
Savings Projection vs Target
Tax-deductible like an RRSP
Every dollar you contribute to your FHSA reduces your taxable income — just like an RRSP. Contribute $8,000 and at a 33% tax rate you get approximately $2,640 back at tax time.
Tax-free withdrawals like a TFSA
When you use your FHSA to buy your first home every dollar comes out completely tax-free — including all the investment growth.
Carry-forward room accumulates
If you can't contribute the full $8,000 in a year unused room carries forward up to a maximum of $8,000. Open the account early to start accumulating room even if you can't contribute yet.
Key FHSA rules
You must be a first-time home buyer — meaning you have not owned a home you lived in during the current year or the previous four years.
The account can stay open for a maximum of 15 years.
If you don't buy a home you can transfer funds to your RRSP or RRIF with no tax consequences — you don't lose the money.
Both partners in a couple can each have their own FHSA and use both toward the same home purchase — effectively doubling the benefit.
