The FHSA is the only Canadian account that is deductible on the way in and tax-free on the way out. For anyone buying a first home, it is the first place a dollar should go.
Open it before you fund it
Contribution room only begins accruing in the year the account is opened. There is no retroactive room. Opening an FHSA with $100 today is worth more than planning to open one next year.
What maximising it produces
Five years of $8,000 contributions at 4% growth reaches roughly $45,000. At a 35% marginal rate, the deductions were worth about $14,000 in refunds along the way — and the withdrawal for a qualifying home is entirely tax-free.
Run it on your own numbersFHSA$8,000 a year, deducted from income, withdrawn tax-free for a first home.Carry the deduction, not just the contribution
The deduction can be carried forward indefinitely. A student or early-career saver can contribute now and claim it after a raise, converting a 20% refund into a 40% one on the same deposit.
If you never buy
Unused FHSA funds can be transferred to an RRSP or RRIF tax-free, without using RRSP room. The downside case is simply that it becomes retirement savings.
Run it on your own numbersDown payment planStack FHSA, the Home Buyers’ Plan and cash savings into a dated timeline.Figures are the published 2026 federal and provincial amounts at the time of writing. General information only, not financial, tax, or legal advice — see the methodology and disclaimer.