Key takeaways
- You can open one if you are a resident of Canada, 18 or older (19 in some provinces), 71 or younger, and a first-time home buyer
- Owning a home abroad can still count against you: the test asks if you lived in a home you owned in the current or past 4 calendar years
- Deposits are tax-deductible; withdrawals for a qualifying home in Canada are tax-free
- $8,000 of room a year, $40,000 lifetime; room starts only when you open the account
- Banks, credit unions and online providers offer FHSAs as savings, GICs or investments
What is an FHSA?
An FHSA is a registered account for saving for a first home. The CRA says contributions are generally tax-deductible, and qualifying withdrawals to buy a first home are tax-free. It combines a key feature of an RRSP (the deduction) with a key feature of a TFSA (tax-free money out).
For how the FHSA fits with your TFSA and RRSP room, see TFSA, RRSP and FHSA for newcomers. This page goes deeper on the FHSA alone.
Who can open an FHSA?
The CRA says you must meet all of these when you open the account:
- Resident of Canada for tax purposes. Most newcomers become residents when they arrive and set up a home here. Check with the tax residency checker.
- Age 18 or older. In some provinces and territories the legal age to sign a contract is 19, so you must be 19 there.
- 71 or younger on December 31 of the year you open it.
- First-time home buyer (see the next section).
- A Social Insurance Number (SIN). Your provider asks for it, with your date of birth.
Your immigration status is not one of the CRA conditions. A work permit or study permit holder who is a tax resident can open one, if they meet the other rules.
Are you a first-time home buyer if you owned a home abroad?
This is the key question for many newcomers. The CRA test is about living in a home you owned, not about where the home is:
- Look at the year you open the FHSA and the 4 calendar years before it. You qualify if, in that time, you did not live as your main home in a home you owned or jointly owned.
- If you have a spouse or common-law partner when you open it, the same test applies to a home they owned that you lived in.
Homes abroad count. The CRA wording covers “a qualifying home (or what would be a qualifying home if located in Canada)”. So if you lived in your own flat in Manila until 2024, you would likely not qualify until 2029. If you owned a flat abroad but rented it out and lived elsewhere, you may still qualify. When unsure, ask the CRA before you open one.
| Situation (opening in 2026) | First-time buyer? |
|---|---|
| Never owned a home | Yes |
| Lived in your own home abroad until 2021, rented since | Yes (2021 is outside 2022–2026) |
| Lived in your own home abroad until 2024 | No, until 2029 |
| Your spouse owns the home you both live in abroad now | No |
How much can you put in?
- $8,000 in the year you open your first FHSA. Room does not exist before that.
- Carry forward up to $8,000 of unused room, so a maximum of $16,000 in one year.
- $40,000 lifetime, across all your FHSAs.
- Over-contribution tax: 1% a month on the highest excess amount.
- Moving money from your RRSP into an FHSA uses the same room and is not deductible.
Example: Lina opens an FHSA in December 2026 with $100. Her room for 2026 is $8,000. In 2027 she can add $8,000 + $7,900 = $15,900. If she had waited until 2027 to open it, she could add only $8,000. Model your savings with the FHSA calculator.
Where can you open an FHSA?
The CRA says FHSAs are offered by issuers such as banks, credit unions, and trust or insurance companies. As of October 10, 2026:
| Type of provider | What you can hold | Good to know |
|---|---|---|
| Big banks and credit unions | Savings, GICs, mutual funds, and stocks or ETFs through a brokerage arm | Easy if you already bank there; compare fees on funds |
| EQ Bank | High-interest FHSA savings and FHSA GICs | For residents aged 18 to 71; not available in Quebec. Its page showed 1.50% on FHSA savings on October 10, 2026 |
| Wealthsimple | Managed portfolios, self-directed stocks and ETFs, or a cash FHSA | Its page showed up to 2.25% interest on cash on October 10, 2026 |
Rates change often. CDIC insures eligible deposits held in an FHSA at a member institution up to $100,000, separately from your other accounts. Investments such as stocks and funds are not covered by CDIC. See CDIC deposit insurance.
How we handle offers. Product details on this page come from each provider’s own website and were last checked on October 10, 2026. Providers change features and rates often, so confirm the details on their site before you apply. No provider pays to be included or ranked here. If a link on this page ever earns us a commission, we will label it next to the link.
How do you use the money to buy a home?
A withdrawal is tax-free only if it is a qualifying withdrawal. The CRA conditions:
- You are a resident of Canada from your first qualifying withdrawal until you buy the home.
- You are a first-time buyer at the time of withdrawal (a separate test from the opening test).
- You have a written agreement to buy or build a qualifying home in Canada, with a date before October 1 of the year after the withdrawal.
- You live in it, or plan to, as your main home within one year of buying it.
- You give your provider Form RC725.
You can also take money from your RRSP under the Home Buyers’ Plan (up to $60,000) for the same home. For first HBP withdrawals made from 2026 to 2028, repayment starts in the fifth year after the withdrawal. Plan the full purchase in mortgage basics for newcomers.
What if you never buy a home?
Your FHSA must close by December 31 of the earliest of:
- the 15th anniversary of opening your first FHSA,
- the year you turn 71,
- the year after your first qualifying withdrawal.
Before then you can move the money directly to your RRSP or RRIF, with no immediate tax (Form RC721). Or you can withdraw it, and it is taxed as income. If you leave Canada, you cannot make a qualifying withdrawal, because residency is required. Moving the money to an RRSP is still possible; get tax advice for your new country.