First Home Savings Account
Also known as: FHSA · First Home Savings Account
A federal tax-deferred savings vehicle for first-time home buyers — $8,000 annual contribution room, $40,000 lifetime maximum, contributions tax-deductible like RRSP, qualifying withdrawals tax-free like TFSA.
The First Home Savings Account (FHSA), introduced April 1, 2023, is a federal tax-deferred savings vehicle designed specifically for first-time home buyers. Contribution room accrues at $8,000 per year (with up to $8,000 of unused room carried forward) to a lifetime maximum of $40,000. Contributions are tax-deductible (like an RRSP); qualifying withdrawals for a first home purchase are tax-free (like a TFSA) — combining the best features of both.
The FHSA can be combined with the Home Buyers' Plan (HBP) for the same purchase, allowing a first-time buyer to access up to $100,000 of tax-advantaged savings between the two programs ($60,000 HBP + $40,000 FHSA). The account must be closed by December 31 of the year the earliest of these occurs: the 15th anniversary of opening it, the year you turn 71, or the year after your first qualifying withdrawal.
Related terms
- Home Buyers' Plan — A federal program allowing first-time home buyers to withdraw up to $60,000 tax-free from RRSPs to purchase a home, repaid over 15 years.
- First Time Home Buyers' PTT Exemption — A BC Property Transfer Tax exemption for qualifying first-time home buyers — available for homes up to $835,000 fair market value: full exemption (no PTT) to $500,000, $8,000 off from $500,000 to $835,000, linear phase-out $835,000–$860,000.
- Newly Built Home PTT Exemption — A BC Property Transfer Tax exemption for newly constructed homes with FMV at or under $1,100,000, with linear phase-out to $1,150,000.
- CMHC Default Insurance Cap — The maximum home purchase price eligible for CMHC default mortgage insurance — raised from $1,000,000 to $1,500,000 effective December 15, 2024.
See also
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@misc{bronsonjob-cra_fhsa_contribution_room,
author = {Job, Bronson},
title = {{FHSA annual + lifetime contribution room}},
howpublished = {BC Real Estate Codex},
year = {2026},
url = {https://www.bronsonjob.com/codex#cra.fhsa.contribution_room},
urldate = {2026-05-19},
note = {Fact ID: cra.fhsa.contribution_room, version 1.}
}Job, B. (2026). FHSA annual + lifetime contribution room. *BC Real Estate Codex*. Retrieved 2026-05-19, from https://www.bronsonjob.com/codex#cra.fhsa.contribution_room
FHSA annual + lifetime contribution room — Bronson Job PREC, BC Real Estate Codex (2026-05-19). https://www.bronsonjob.com/codex#cra.fhsa.contribution_room
Fact id: cra.fhsa.contribution_room · v1 · machine-readable: /api/v1/facts/by-id/cra.fhsa.contribution_room.json
Verified sources (1)· re-verified 2026-05-19Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CRAretrieved 2026-05-19First Home Savings Account (FHSA)https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
cra.fhsa.contribution_room · v1View in Codex →License: This definition is licensed under CC BY 4.0. Cite as: "First Home Savings Account", BC Real Estate Glossary by Bronson Job, https://www.bronsonjob.com/glossary/fhsa.
