First Home Savings Account • Tax deduction + tax-free growth + tax-free withdrawal • $40,000 lifetime limit
The First Home Savings Account (FHSA) is Canada's most powerful savings account for first-time home buyers. You get an upfront tax deduction like an RRSP, tax-free growth like a TFSA, and tax-free withdrawals for a qualifying home purchase — a triple tax advantage.
FHSA Calculator
FHSA Rules for 2025
Annual contribution limit: $8,000/year
Lifetime limit: $40,000
Carry-forward: Up to $8,000 of unused room can carry forward (one year only)
Account lifespan: Maximum 15 years, or until December 31 of the year you turn 71
Eligible withdrawals: Must be a first-time home buyer (no home owned in current year or prior 4 years)
If you don't buy: Transfer to RRSP or RRIF without affecting RRSP room
FHSA vs RRSP Home Buyers' Plan
The FHSA is generally superior to the RRSP Home Buyers' Plan (HBP) for most first-time buyers:
FHSA withdrawals are tax-free — no repayment required
HBP requires you to repay $35,000 over 15 years back into your RRSP
You can use both FHSA and HBP together for a maximum combined benefit
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