FHSA - First Home Savings Account
Updated: Jun 12, 2026 · 2026The FHSA blends RRSP and TFSA benefits for first-time home buyers. Contributions are tax deductible, and qualifying withdrawals to buy a first home are tax free.
2026 contribution limits
Annual and lifetime caps
- Annual participation limit: $8,000 CAD
- Lifetime contribution limit: $40,000 CAD
- Up to $8,000 of unused annual room can carry forward (only after opening an FHSA)
- Excess contributions are penalized at 1% per month
Eligibility and timing
- Must be 18+ and a Canadian resident
- Must qualify as a first-time home buyer
- Contribution room only starts after you open an FHSA
- RRSP-to-FHSA transfers count toward annual room (not the lifetime cap)
Tax implications
Contributions
- Tax deductible (similar to RRSP)
- Lifetime FHSA deduction limit is $40,000
- RRSP transfers in are not redeductible
Withdrawals
- Qualifying first-home withdrawals are tax free
- Non-qualifying withdrawals are taxable as income
- Unused balance can usually be transferred to RRSP/RRIF tax deferred
Broker support
- Wealthsimple: commonly supported
- Questrade: commonly supported
- Interactive Brokers Canada: support may vary by setup
- Moomoo Canada: support may vary by rollout
Sources verified for 2026: Canada.ca FHSA participation room and tax deduction pages confirming the $8,000 annual and $40,000 lifetime caps.