FHSA Contribution Limit 2025

Q: What Is the FHSA?

The First Home Savings Account (FHSA) launched in April 2023 as a new registered account specifically for Canadians saving for their first home. It combines the best features of both the TFSA and RRSP:

No fee everyday banking

Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

See how it works

The First Home Savings Account: $8,000/year, $40,000 lifetime. Save tax-free AND get a deduction. Canada's most powerful tool for first-time homebuyers.

$8,000

Annual contribution limit

$40,000

Lifetime contribution limit

$16,000

Max 2025 room (if opened in 2023)

What Is the FHSA?

The First Home Savings Account (FHSA) launched in April 2023 as a new registered account specifically for Canadians saving for their first home. It combines the best features of both the TFSA and RRSP:

Like an RRSP: Contributions are tax-deductible (reduces your taxable income)
Like a TFSA: Qualifying withdrawals for a first home are completely tax-free
Unique: No repayment required (unlike the RRSP Home Buyers' Plan)

This makes the FHSA the most tax-advantaged way to save for a first home in Canadian history. A couple who both open FHSAs can accumulate up to $80,000 completely tax-sheltered.

FHSA Rules and Contribution Limits

Feature	Details
Annual contribution limit	$8,000
Lifetime contribution limit	$40,000
Carry-forward unused room	Up to $8,000 per year (max 1 year carry-forward)
Account lifespan	15 years or until age 71
Eligible investments	Savings, GICs, stocks, ETFs, mutual funds
Withdrawal tax treatment	Tax-free for qualifying first home purchase
Non-home withdrawal	Taxable as income (like RRSP)
Transfer to RRSP	Allowed without affecting RRSP room

Carry-forward rules: If you open an FHSA in 2023 and only contribute $3,000, you carry forward $5,000 to 2024. In 2024, you can contribute $13,000 ($8,000 regular + $5,000 carry-forward). The carry-forward cap is $8,000 — you cannot accumulate more than one year of unused room.

Who Qualifies for an FHSA?

To open and contribute to an FHSA, you must:

Be a Canadian resident
Be at least 18 years old
Be a first-time home buyer — you AND your spouse/common-law partner cannot have lived in a home you owned in the current year or in any of the 4 preceding calendar years

What Qualifies as a First Home?

The qualifying home must be located in Canada and must be your principal place of residence within 1 year of purchase. It includes single-family homes, condos, townhouses, and mobile homes, but excludes investment properties and vacation homes.

FHSA vs RRSP Home Buyers' Plan vs TFSA

Feature	FHSA	RRSP HBP	TFSA
Contribution tax deduction	Yes	Yes (when contributed)	No
Tax-free withdrawal	Yes (qualifying)	No (must repay)	Yes (always)
Repayment required	No	Yes (over 15 years)	No
Max amount	$40,000	$60,000 (2024+)	$102,000 (cumulative)
Can be combined	Yes (with HBP)	Yes (with FHSA)	Yes

You can use your FHSA AND the RRSP Home Buyers' Plan together to withdraw up to $100,000 tax-free for your first home. This is a powerful combination for buyers who have been saving in both accounts.

Frequently Asked Questions

What is the FHSA contribution limit for 2025?

The annual FHSA contribution limit is $8,000 for 2025, with a lifetime maximum of $40,000. If you opened your FHSA in 2023 and haven't maximized contributions, you may have up to $8,000 of carry-forward room available, allowing you to contribute up to $16,000 in 2025.

Can I open an FHSA if I've owned a home before?

You can open an FHSA if you have not lived in a home you owned in the current year OR any of the 4 preceding calendar years. For example, if you owned a home in 2019 but sold it and have been renting since 2020, you may qualify as a first-time buyer again in 2025.

Where can I open an FHSA in Canada?

Most major banks, credit unions, and online brokerages now offer FHSAs. EQ Bank, Wealthsimple, RBC, TD, Scotiabank, BMO, and CIBC all offer FHSA accounts. Compare the interest rates or investment options before choosing.

What if I never buy a home — what happens to my FHSA?

If you don't use your FHSA to buy a home within 15 years (or by age 71), you can transfer the funds to your RRSP without affecting your RRSP contribution room, or withdraw the money as taxable income (like an RRSP).

Can couples both contribute to separate FHSAs?

Yes! If both partners are eligible first-time buyers, each can contribute $8,000/year to their own FHSA, for a combined $16,000/year and up to $80,000 lifetime — all tax-deductible and withdrawn tax-free for a qualifying home purchase.