How the FHSA works
| Rule | Detail |
|---|---|
| Annual contribution | An annual contribution limit set by the government. |
| Lifetime limit | A lifetime limit set by the government. |
| Contributions | Tax-deductible, reducing taxable income (similar to an RRSP). |
| Withdrawals | Qualifying withdrawals for a first home are tax-free (similar to a TFSA). |
Eligibility
A person with a SIN who is a Canadian resident for tax purposes can open an FHSA. The account holder must be at least the age of majority in their province, within the program's age limits, and a first-time home buyer - meaning they have not lived in a home they owned during the current year or the previous few calendar years.
Permanent residents and other SIN holders who meet these conditions are eligible from the point they qualify; there is no separate waiting period for the account itself.
Relationship to the RRSP Home Buyers' Plan
The FHSA can be used together with the RRSP Home Buyers' Plan for a first-home purchase. Which combination applies depends on individual savings and income.
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Book my free review →Frequently asked questions
Can newcomers open an FHSA?
Yes. A SIN holder who is a Canadian resident for tax purposes, is at least the age of majority in their province, within the program's age limits, and a first-time home buyer can open an FHSA.
How much can be contributed to an FHSA?
Annual and lifetime contribution limits are set by the government. Contributions are tax-deductible and qualifying first-home withdrawals are tax-free. The current limits are published at canada.ca.
What is a first-time home buyer for the FHSA?
Generally, a person who has not lived in a home they owned during the current calendar year or the previous few calendar years.
Can the FHSA be combined with the RRSP Home Buyers' Plan?
Yes. Both can be used for a first-home purchase. The right combination depends on individual savings and income.
Related pages
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.