The FHSA (First Home Savings Account) lets you save up to $8,000 CAD a year — $40,000 CAD over your lifetime — toward your first home in Canada, with tax-deductible contributions and a 100% tax-free withdrawal. Combined with the Home Buyers' Plan (HBP) from your RRSP, one person can put together up to $100,000 CAD tax-free for a down payment; as a couple, up to $200,000 CAD.
Getting the keys to your own home in Canada, opening the door and saying "this is ours" is one of the biggest dreams for anyone living in this country. But let's be honest: between inflation, interest rates, and home prices in cities like Calgary or Toronto, saving for a down payment can feel like climbing a mountain. The good news is the Canadian government built a tool for exactly this — the FHSA — and in 2026 it's still the smartest way to get there.
If I had to sum up the FHSA in one sentence, I'd say it combines the best of both other registered accounts:
To open an FHSA you need to meet three requirements:
👉 Full official details and eligibility: CRA — First Home Savings Account (FHSA).
The FHSA lets you contribute up to $8,000 CAD a year per person, with a lifetime limit of $40,000 CAD. If you don't use your full room in a given year, it carries forward to the next one (up to a maximum of $8,000 CAD carried).
If you and your partner each open an account:
As your broker and financial advisor, my job isn't just to sell you insurance — it's to help you build real wealth. And in 2026 you can combine your FHSA with the Home Buyers' Plan (HBP) from your RRSP for the same purchase:
| Source | One person | As a couple (each with their own accounts) |
|---|---|---|
| FHSA (lifetime) | $40,000 CAD | $80,000 CAD |
| Home Buyers' Plan (RRSP) | $60,000 CAD | $120,000 CAD |
| Total tax-free | $100,000 CAD | $200,000 CAD |
👉 Official HBP details: CRA — Home Buyers' Plan. Keep in mind the HBP isn't "free money": whatever you withdraw from your RRSP has to be repaid within 15 years, or it gets added back as taxable income.
The FHSA doesn't lock you into buying. If your plans change, you can transfer the balance tax-free to your RRSP or RRIF (without affecting your RRSP room), or withdraw it and pay tax on it as regular income. The account must be closed at most 15 years after opening it, or by December 31 of the year you turn 71 — whichever comes first.
I see the same pattern over and over with newcomer families settling in Calgary: they arrive eager to buy a home quickly, but no one explained that the FHSA exists or how to pair it with the RRSP. The result is money sitting in a regular savings account, paying tax on growth that could have been 100% tax-free. Getting these accounts set up right from your first year in Canada can mean thousands of dollars of difference toward your down payment.
Buying a home is a huge win, but it's also a big responsibility. My advice is always the same: don't just insure the property with the bank — insure yourself.
If you buy a property and an accident or a serious illness keeps you from working tomorrow, the bank won't wait. With life insurance and disability insurance built around you — not around the bank — you make sure your family never loses the roof it took so much to get.
Yes. If you meet the requirements for each program, you can combine an FHSA withdrawal with an RRSP Home Buyers' Plan withdrawal for the same purchase, putting together up to $100,000 CAD tax-free per person.
You can transfer the balance tax-free to your RRSP or RRIF without affecting your RRSP contribution room, or withdraw it and pay tax on it as regular income.
Yes. The FHSA is a separate account with its own contribution room; it doesn't replace or reduce your TFSA or RRSP room. See our RRSP vs TFSA guide for more.
The account must be closed at most 15 years after opening it, or by December 31 of the year you turn 71 — whichever comes first.
Yes. As soon as you're a resident of Canada for tax purposes, are 18 or older, and meet the first-time home buyer requirement, you can open an FHSA.
Written by Yasmin Bedoya, Independent Insurance & Financial Advisor in Calgary, Alberta — serving families, newcomers, and business owners across Canada in English and Spanish.
This article is general educational information, not personalized financial advice. Rules and limits change; always confirm on the official CRA links above or get advice for your situation.
Ready to talk about your path to homeownership? Whether you're planning to buy this year or in two, the best time to structure your FHSA is today. Book a free, no-pressure 15-minute consultation — in English or Spanish.
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