FHSA

The First Home Savings Account (FHSA) is a tax-advantaged registered account introduced in Canada to help first-time homebuyers save for a down payment.

Canadians aged 18 to 71 who qualify as first-time buyers can contribute up to $8,000 annually, with a lifetime limit of $40,000. Contributions are tax-deductible like an RRSP, while qualified withdrawals to purchase a first home are tax-free like a TFSA.

Funds can be invested in stocks, ETFs, mutual funds, and more, allowing savings to grow over time. If not used within 15 years, the FHSA can be transferred to an RRSP or RRIF without affecting contribution room, making it a flexible and powerful tool for building toward homeownership or retirement.