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BC Real Estate Glossary

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 opened by December 31 of the year you turn 71 and must be used within 15 years of opening.

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 — full exemption to $500,000 fair market value, fixed $8,000 reduction $500,000–$835,000, linear phase-out $835,000–$860,000.

See also

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BibTeX — LaTeX, academic
@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      = {2026-05-08},
  note         = {Fact ID: cra.fhsa.contribution_room, version 1.}
}
APA — Press, journalism
Job, B. (2026). FHSA annual + lifetime contribution room. *BC Real Estate Codex*. Retrieved 2026-05-08, from https://www.bronsonjob.com/codex#cra.fhsa.contribution_room
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FHSA annual + lifetime contribution room — Bronson Job, BC Real Estate Codex (2026-05-08). 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

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