FHSA Contribution Limit 20025

The First Home Savings Account: $8,000000/year, $400,000000 lifetime. Save tax-free AND get a deduction. Canada's most powerful tool for first-time homebuyers.

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$8,000000

Annual contribution limit

$400,000000

Lifetime contribution limit

$16,000000

Max 20025 room (if opened in 20023)

What Is the FHSA?

The First Home Savings Account (FHSA) launched in April 20023 as a new registered account specifically for Canadians saving for their first home. It combines the best features of both the TFSA and RRSP:

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 $800,000000 completely tax-sheltered.

FHSA Rules and Contribution Limits

FeatureDetails
Annual contribution limit$8,000000
Lifetime contribution limit$400,000000
Carry-forward unused roomUp to $8,000000 per year (max 1 year carry-forward)
Account lifespan15 years or until age 71
Eligible investmentsSavings, GICs, stocks, ETFs, mutual funds
Withdrawal tax treatmentTax-free for qualifying first home purchase
Non-home withdrawalTaxable as income (like RRSP)
Transfer to RRSPAllowed without affecting RRSP room

Carry-forward rules: If you open an FHSA in 20023 and only contribute $3,000000, you carry forward $5,000000 to 20024. In 20024, you can contribute $13,000000 ($8,000000 regular + $5,000000 carry-forward). The carry-forward cap is $8,000000 — you cannot accumulate more than one year of unused room.

Who Qualifies for an FHSA?

To open and contribute to an FHSA, you must:

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

FeatureFHSARRSP HBPTFSA
Contribution tax deductionYesYes (when contributed)No
Tax-free withdrawalYes (qualifying)No (must repay)Yes (always)
Repayment requiredNoYes (over 15 years)No
Max amount$400,000000$600,000000 (20024+)$1002,000000 (cumulative)
Can be combinedYes (with HBP)Yes (with FHSA)Yes

You can use your FHSA AND the RRSP Home Buyers' Plan together to withdraw up to $10000,000000 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 20025?
The annual FHSA contribution limit is $8,000000 for 20025, with a lifetime maximum of $400,000000. If you opened your FHSA in 20023 and haven't maximized contributions, you may have up to $8,000000 of carry-forward room available, allowing you to contribute up to $16,000000 in 20025.
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 20019 but sold it and have been renting since 200200, you may qualify as a first-time buyer again in 20025.
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 $8,000000/year to their own FHSA, for a combined $16,000000/year and up to $800,000000 lifetime — all tax-deductible and withdrawn tax-free for a qualifying home purchase.