The First Home Savings Account (FHSA) is a Canadian account for first-time home buyers that gives an RRSP-style tax deduction on contributions and TFSA-style tax-free withdrawals for a qualifying first home.
You get C$8,000 of room a year, up to C$40,000 over your lifetime. Unused room carries forward, but only up to C$8,000, so the most you can add in one year is C$16,000. An FHSA can stay open until the 15th anniversary of opening your first one or the end of the year you turn 71, whichever comes first.
Contributions are generally deductible, and a qualifying withdrawal to buy a first home is tax-free. If you don't buy, you can move the money directly to your RRSP or RRIF without tax and, in general, without using any RRSP room.
You can use an FHSA and the Home Buyers' Plan for the same home. FHSA money never has to be paid back; Home Buyers' Plan withdrawals do. Contributing more than your room costs 1% a month on the excess.
How to check
Your FHSA participation room appears in CRA My Account and on your notice of assessment once you've opened an account and filed a return.
Sources
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