First Home Savings Account

The FHSA is the most generous government program for Canadian first-time homebuyers. You can contribute up to $8,000 per year and $40,000 lifetime; contributions reduce your taxable income (like an RRSP), and qualifying withdrawals to buy or build a first home are completely tax-free (like a TFSA). To qualify, you must be at least 18 and a Canadian resident, and you (and your spouse) must not have lived in a home you owned in the current calendar year or the four preceding calendar years. Once opened, the account stays open for up to 15 years or until age 71, whichever comes first. Unused FHSA contribution room rolls forward annually (up to $8,000 carry-forward). You can combine FHSA with the RRSP Home Buyers Plan ($60,000) and conventional savings — a couple where both partners qualify can stack up to $200,000 in tax-advantaged down-payment savings between FHSA + HBP.