Why the FHSA is so powerful
- Tax-deductible contributions, like an RRSP. Lower your taxable income in the year you contribute.
- Tax-free withdrawals for your first home, like a TFSA. No repayment required.
- Stackable with the Home Buyers' Plan (HBP): use both on the same purchase.
Contribution limits
Annual maximum
$8,000 / year
Unused room carries forward up to $8,000.
Lifetime maximum
$40,000
Across the entire life of the account.
Using your FHSA: withdrawal
When you're ready to buy your first home:
- Funds can be withdrawn tax-free.
- Must be used for a qualifying home purchase.
- Complete a withdrawal form through your financial institution.
The CRA form you'll need is the FHSA Qualifying Withdrawal Form (RC725), available through the Canada Revenue Agency.
The strategy most people miss
If you have RRSP room, contribute first to your FHSA, then move savings into your RRSP for the HBP after the 90-day seasoning window. Done right, you can deploy FHSA + HBP together for one purchase, and stack both tax deductions. That's a serious head start on a down payment.
For full eligibility rules, see the CRA's FHSA page.