Taxes & Accounts

FHSA

An FHSA is a registered plan for eligible first-time home buyers. Contributions are generally deductible and qualifying home withdrawals can be tax-free.

4 min

Taxes 101 • 08

FHSA stands for First Home Savings Account.

It is a registered plan designed to help eligible first-time home buyers save for a qualifying first home.

The account combines two tax features.

Contributions are generally deductible, and qualifying withdrawals can be tax-free if the conditions are met.

An FHSA has rules around

01Who can open one02Contribution room03Deductible contributions04Qualifying homes05Qualifying withdrawals06When the account must eventually close

Qualifying and non-qualifying withdrawals are different.

Qualifying withdrawal

Can be tax-free when all conditions are met.

Taxable withdrawal

Generally must be included in income if the qualifying conditions are not met.

The account is useful because the rules work together.

ContributionCan generally be deductible

GrowthSheltered while inside

Qualifying withdrawalCan be tax-free

EligibilityMust satisfy current FHSA rules

The FHSA is not simply a TFSA labelled for housing.

Eligibility, contribution room, withdrawal conditions and closing rules are different.

Before using an FHSA, check

01Whether you qualify to open one02Available participation room03The qualifying home rules04The withdrawal conditions05Your home-buying timeline

Remember this

FHSA tax advantages come with specific housing rules.

Understand the conditions before treating the account as a simple savings bucket.

Lesson complete

Reviewed 2026-08-18

Sources

Canada Revenue AgencyFirst Home Savings Account ↗Canada Revenue AgencyWithdrawals and transfers out of your FHSAs ↗

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