What Is the FHSA? | First-Time Buyer Tax-Free Savings | Ridge Estate

The FHSA—short for First Home Savings Account—is one of the most powerful tools first-time buyers in Canada have ever had.

It combines the best features of an RRSP and TFSA to help you save for your first home, faster and smarter.

Here’s how it works:

• - you can contribute up to $8,000/year and up to $40,000 total
• - contributions are tax-deductible (like an RRSP)
• - withdrawals are tax-free (like a TFSA) when used to buy your first home
• - unused room carries forward if you don’t max out right away
• - must be used within 15 years of opening the account

You must be a first-time homebuyer and at least 18 years old to open one.

You can even combine your FHSA with the Home Buyers’ Plan (HBP) for even more power.

💡 ridge pro tip: you can open an fhsa even before you're ready to buy. starting early gives your savings time to grow—tax-free.

🔗 related articles: home buyer incentives and rebates, how much can i afford?

📈 ridge estate helps clients stack every advantage—including opening their fhsa and getting started with serious savings strategy.