Smart Advice Buying or Renting a Home

Get closer to home ownership with the First Home Savings Account (FHSA).
Jun. 07, 2023 6-minute read

What is the FHSA?

Do I qualify for the FHSA?

Who is considered a first-time homebuyer when an FHSA is opened?

How much money can I put into an FHSA?

What are the advantages of an FHSA?

Get a tax deduction when you contribute

Grow your investments tax-free

Withdraw your money tax-free

Can I use both the FHSA and the RRSP Home Buyer’s Plan?


Who is eligible? Canadians 18 or older with a valid Social Insurance Number (SIN) Canadian residents with a Social Insurance Number (SIN) who are under age 71, have earned income and file a tax return in Canada
How much can I contribute? $8,000 annually, plus up to $8,000 of your unused contribution room, up to a maximum lifetime limit of $40,000 18% of previous year’s earned income, less any pension adjustment, up to maximum annual limit ($30,780 for 2023)
Are contributions tax-deductible? Yes Yes
Do withdrawals have to be repaid? No Yes, money withdrawn from your RRSP through the Home Buyer’s Plan has to be paid back into your RRSP in equal payments over the next 15 years.
Can I make tax-free withdrawals? Yes, to purchase a qualifying first home Yes, the withdrawals under the HBP are tax-free if you contribute your annual repayment amount back into your RRSP each year. The minimum annual repayment is 1/15 of the amount withdrawn.
Maximum withdrawal limit No limit $35,000

What if I change my mind and decide not to buy a home?

Planning to purchase your first home? Here are some more resources to help you prepare:

Want to learn more about the FHSA?

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