If owning a home is one of your future goals, the First Home Savings Account (FHSA) could make the home-buying journey a little easier. It is designed to help Canadians save for a first home, and contributions to the account are tax deductible.
What is a FHSA?
The FHSA combines some of the best features of an RRSP and a TFSA. Just like an RRSP, contributions to an FHSA are tax deductible, which reduces your taxable income and can lower the amount you pay in taxes in a year. Like a TFSA, investment growth in the FHSA is completely tax-free. The FHSA is a tax-free savings account designed to help you save for your first home by reducing your taxable income and allowing for tax-free growth.
Here’s a simple example: If you open an FHSA in September 2025 and contribute $8,000 that month, that amount comes off your taxable income for 2025. This means, that when you file your 2025 taxes, you will receive a $8,000 tax break while saving for your future home.
Who can benefit from an FHSA?
You can open an FHSA account if the following criteria applies to you:
Learn more about what qualifies you as a first-time homebuyer here.
How much money can be contributed?
You can contribute up to $8,000 per year to your FHSA. The unused portion of your first year’s contribution limit can be transferred to a subsequent year, but there is a maximum lifetime contribution limit of $40,000.
What can the contributions to the FHSA be used for?
You can use the funds you contribute to the FHSA towards a qualifying home purchase. This can be put towards a downpayment or towards costs related to buying or home building.
What happens if I put money into an FHSA, but later decide to use it for something else?
If plans change, your FHSA contributions won’t go to waste. You can transfer the funds from an FHSA to an RRSP (Registered Retirement Savings Fund) or RRIF (Registered Retirement Income Fund) without paying tax on the money. If you choose to withdraw and use the money you contributed to your FHSA for something else, this money will be treated as taxable income.
How to set up a FHSA?
Text Provincial Credit Union at 1-855-728-2211 or call your nearest branch to set up an appointment and open your First Home Savings Account.
For more details, explore this full FHSA guide.
What is a FHSA?
The FHSA combines some of the best features of an RRSP and a TFSA. Just like an RRSP, contributions to an FHSA are tax deductible, which reduces your taxable income and can lower the amount you pay in taxes in a year. Like a TFSA, investment growth in the FHSA is completely tax-free. The FHSA is a tax-free savings account designed to help you save for your first home by reducing your taxable income and allowing for tax-free growth.
Here’s a simple example: If you open an FHSA in September 2025 and contribute $8,000 that month, that amount comes off your taxable income for 2025. This means, that when you file your 2025 taxes, you will receive a $8,000 tax break while saving for your future home.
Who can benefit from an FHSA?
You can open an FHSA account if the following criteria applies to you:
- You are between the ages of 18-71 years old
- You are a resident of Canada
- You qualify as a first-time homebuyer meaning:
- You did not own (or jointly own) a home you lived in during the year you open the account or in the previous four calendar years
- Your spouse or common-law partner also does not own a qualifying home you live in
Learn more about what qualifies you as a first-time homebuyer here.
How much money can be contributed?
You can contribute up to $8,000 per year to your FHSA. The unused portion of your first year’s contribution limit can be transferred to a subsequent year, but there is a maximum lifetime contribution limit of $40,000.
What can the contributions to the FHSA be used for?
You can use the funds you contribute to the FHSA towards a qualifying home purchase. This can be put towards a downpayment or towards costs related to buying or home building.
What happens if I put money into an FHSA, but later decide to use it for something else?
If plans change, your FHSA contributions won’t go to waste. You can transfer the funds from an FHSA to an RRSP (Registered Retirement Savings Fund) or RRIF (Registered Retirement Income Fund) without paying tax on the money. If you choose to withdraw and use the money you contributed to your FHSA for something else, this money will be treated as taxable income.
How to set up a FHSA?
Text Provincial Credit Union at 1-855-728-2211 or call your nearest branch to set up an appointment and open your First Home Savings Account.
For more details, explore this full FHSA guide.
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