Who qualifies for an FHSA in Canada?

You must be a Canadian resident, at least 18 years old, and a first-time home buyer — meaning you have not owned a home you lived in as your principal residence during the current year or the preceding four calendar years.

Can I use FHSA and RRSP HBP together?

Yes. You can combine FHSA ($40,000 lifetime, no repayment) and RRSP Home Buyers' Plan ($60,000 per person) for up to $100,000 per person toward your down payment on the same qualifying home purchase.

What happens to my FHSA if I do not buy a home?

If you do not use the FHSA for a qualifying home purchase by age 71, you can transfer the balance to your RRSP or RRIF tax-free. Non-qualifying withdrawals are taxable.

FHSA Guide Canada 2026

Q: What are the FHSA limits in 2026?

The FHSA contribution limit remains $8,000 per year and $40,000 lifetime in 2026. Unused room carries forward up to $8,000 per year, so the maximum single-year contribution is $16,000 when carry-forward is available.

Updated for 2026 · Free, unbiased education for Canadian first-time home buyers

Quick Answer

What is the FHSA and how does it work in 2026?

The First Home Savings Account (FHSA) is Canada's dedicated savings account for first-time home buyers. In 2026, you can contribute up to $8,000 per year ($40,000 lifetime). Contributions reduce your taxable income and qualifying home-purchase withdrawals are completely tax-free — a double tax advantage no other registered account offers.

2026 limits: $8,000/year, $40,000 lifetime, up to $16,000 in a single year with carry-forward
Tax-deductible contributions plus tax-free qualifying withdrawals
No repayment required — unlike the RRSP Home Buyers' Plan
Combine with HBP for up to $100,000 per person toward your down payment

Source: Canada Revenue Agency

Why the FHSA matters for first-time buyers

With national average home prices near $695,000, every dollar of your down payment counts. The FHSA lets you save with an immediate tax refund on contributions and zero tax when you withdraw for a qualifying purchase. Over five years of maximum contributions, a buyer in a 33% tax bracket can save roughly $13,000 in tax refunds alone — before investment growth.

2026 contribution limits and carry-forward

Your annual FHSA room is $8,000. Unused room carries forward up to $8,000 per year, so the maximum you can contribute in any single year is $16,000 if you have full carry-forward available. Open the account early — even a small first contribution starts the 15-year clock and preserves room for later.

Stack FHSA with RRSP HBP

You can use both the FHSA ($40,000 lifetime, no repayment) and the RRSP Home Buyers' Plan ($60,000 per person, 15-year repayment) on the same purchase. That is up to $100,000 per person — $200,000 for a couple — from registered accounts alone. Use our comparison tools to model which account to fund first.

Deep-dive guide chapters

Continue learning in our free 8-module guide — each link goes to a detailed chapter with checklists, examples, and calculators.

FHSA deep diveContribution limits, eligibility, investments, and withdrawal rules RRSP Home Buyers' Plan$60,000 withdrawal limit and 15-year repayment schedule FHSA + HBP combined strategyStack both accounts for up to $100K per person First-time buyer definitionConfirm you qualify under CRA's 4-year rule FHSA vs. RRSP comparison toolModel tax savings side by side Savings timeline plannerMap FHSA contributions to your purchase date

Frequently asked questions

Related resources from LendCity

FirstHomeGuide.ca is part of the LendCity education network. When you are ready for personalized mortgage guidance — or planning beyond your first purchase — these trusted resources can help.

LendCity MortgagesLicensed mortgage professionals across Canada — pre-approval, rate shopping, and first-time buyer financing with no obligation.Mortgage Renewal HubFree renewal education for when your first mortgage term ends — compare rates, avoid lender auto-renewals, and plan your next term.

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