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.
Frequently asked questions
- 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.
- 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.