First Home Savings Account (FHSA)

Canadian Programs

A registered account that combines the tax benefits of an RRSP and a TFSA for first-time home buyers. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). The lifetime contribution limit is $40,000.

Related terms

Home Buyers' Plan (HBP)

A program that lets you withdraw up to $60,000 from your RRSP tax-free to buy or build your first home. The money must be repaid to your RRSP over 15 years. If you do not repay, the amounts are added to your taxable income.
Tax-Free Savings Account (TFSA)

A flexible registered account where your investments grow completely tax-free and withdrawals are not taxed. Available to Canadian residents 18 and older with a SIN. Contribution room accumulates each year even if you do not open one right away.
Registered Retirement Savings Plan (RRSP)

A tax-deferred savings account for retirement. Contributions reduce your taxable income now, and the investments grow tax-free inside the plan. You pay tax when you withdraw, ideally in retirement when your income and tax rate are lower.