Meng Hu, CFP

The FHSA gives you a lot of time and flexibility to save up for your first home.

Once you open your account, you can put money away for up to 15 years before you have to use your savings to buy a home⁴.

Just remember—the sooner you open your FHSA and make regular contributions, the more time your future down payment will have to grow! Plus, you’ll start accumulating contribution room as soon as you open the account—and unused contribution room can be carried forward to the following year³.

Increase your buying power by using both the Home Buyers’ Plan (HBP) and an FHSA toward the purchase of your first home.

Here’s how:

• Borrow up to $35,000 from your Registered Retirement Savings Plan (RRSP) to buy a home under the HBP.
• Contribute up to $40,000 to your FHSA.

With money from the HBP and a FHSA, you could have up to $75,000 (or more) tax-free for your down payment! ($35,000 from RRSP + $40,000 from FHSA + potential FHSA investment earnings)

Plus, you don’t have to repay the funds in an FHSA like you do through the HBP.

First of all, congratulations on maxing out contributions to your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP).

If you’re eligible to open an FHSA, you can contribute up to $8,000 per year ($40,000 lifetime limit), tax-free, in an FHSA to buy your first home.

If you have any money left in your FHSA after you buy a qualifying home, you can transfer it to your RRSP or Registered Retirement Income Fund (RRIF) tax-free!

Here’s a bit of fantastic news—you are considered a first-time homebuyer if you (and/or your spouse or common-law partner) haven’t owned a home (that you also lived in) in the four years prior to this year.¹ That means you can open an FHSA to save for your next home, tax-free!

If you’re not sure you will buy a home you can still open an FHSA, provided you meet all the eligibility requirements. You will have 15 years to use your savings to buy a home.

If you choose not to buy a home or don’t think you’ll need all the money in your FHSA to buy one, you can transfer any unused or leftover funds to your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF), tax-free, without impacting your RRSP contribution room⁴.

Just keep in mind that you have to transfer the money before December 31 of the year after you make a qualifying withdrawal or turn 71, whichever comes first.