What is the FHSA annual limit?

$8,000 per year. Lifetime cap is $40,000. Carry-forward is limited to one year and a maximum of $8,000.

What is the FHSA lifetime contribution cap?

$40,000. Reaching the cap takes a minimum of five years at $8,000 per year.

Who can open an FHSA?

A Canadian resident aged 18 or older (and under 71) who has not occupied a qualifying home owned by themselves or a spouse in the current or four preceding years.

What is a qualifying FHSA withdrawal?

A tax-free withdrawal for a first home purchase, requiring a written agreement to buy or build by October 1 of the year after withdrawal and intent to occupy within one year.

When must the FHSA close?

December 31 of the year after the first qualifying withdrawal, the 15th year after opening, or the year the holder turns 71, whichever comes first.

Can FHSA and HBP be used together?

Yes. Maximum combined per person is $100,000 ($60,000 HBP + $40,000 FHSA) toward the same first home purchase.

How does FHSA carry-forward work?

Carry-forward maxes out at $8,000 (one year). It does not compound and starts only after the FHSA is opened.

FHSA Contribution Limits and Withdrawal Rules (2026)

FHSA annual limit is $8,000 with $40,000 lifetime maximum. Unused room carries forward up to $8,000. Qualifying withdrawals for a first home are tax-free.

Reviewed by Canadian Money Help Editorial Updated April 25, 2026 Source CRA 2026

The First Home Savings Account (FHSA) annual contribution limit is $8,000 with a $40,000 lifetime maximum. Unused contribution room carries forward up to one year (a maximum carry-forward of $8,000). The account must be closed by December 31 of the year following the first qualifying withdrawal, or 15 years after opening, whichever comes first. Qualifying withdrawals for a first home purchase are tax-free.

FHSA contribution rules

Rule	Amount or limit
Annual contribution limit	$8,000
Lifetime contribution limit	$40,000
Maximum carry-forward	$8,000 (one year only)
Maximum participation period	15 years from account opening
Account closure deadline	December 31 of year after first qualifying withdrawal, or 15-year limit, or year holder turns 71
Over-contribution penalty	1% per month on excess

Contributions are tax-deductible in the year made (or carried forward and deducted in a later year). Investment growth inside the FHSA is tax-free. Qualifying withdrawals for a first home purchase are tax-free, combining the tax-deduction benefit of an RRSP with the tax-free withdrawal benefit of a TFSA.

Eligibility to open an FHSA

To open an FHSA, an individual must be a Canadian resident, at least 18 years old (or the age of majority in the province), under age 71, and a “first-time home buyer” as defined by the FHSA rules: the individual must not have lived in a qualifying home owned by them or their spouse or common-law partner in the current calendar year or any of the four preceding calendar years.

FHSA carry-forward room

FHSA carry-forward is limited to one year and capped at $8,000. A person who opens an FHSA in 2026 and contributes $0 in 2026 has $16,000 of room available in 2027 ($8,000 carry-forward plus $8,000 new). However, if the same person contributes $0 in both 2026 and 2027, the 2028 room is still only $16,000 ($8,000 carry-forward plus $8,000 new), not $24,000. The carry-forward never compounds beyond one year.

Contribution room only starts accumulating after the FHSA is opened. A person who delays opening the FHSA until 2027 starts with $8,000 of room in 2027, not $16,000, even though they could have opened in 2026.

Qualifying withdrawal rules

A qualifying withdrawal is tax-free and can be the entire FHSA balance. To qualify, the withdrawal must meet all of these conditions: the holder must be a first-time home buyer at the time of withdrawal, must have a written agreement to buy or build a qualifying home in Canada with completion date before October 1 of the year after withdrawal, must intend to occupy the home as a principal residence within one year, and must not have owned a qualifying home in the year of withdrawal or four preceding calendar years (excluding any home owned by the spouse if the holder did not occupy it).

Closing the FHSA

The FHSA must be closed by December 31 of the year following the first qualifying withdrawal, by December 31 of the 15th year after opening, or by December 31 of the year the holder turns 71, whichever comes first. Any remaining balance can be transferred tax-free to an RRSP or RRIF (without using RRSP contribution room) or withdrawn as taxable income.

FHSA versus RRSP Home Buyers’ Plan

The FHSA and the RRSP Home Buyers’ Plan (HBP) can be used together. HBP allows up to $35,000 to be withdrawn from RRSPs for a first home purchase, repayable over 15 years. FHSA withdrawals do not need to be repaid. A first-time home buyer with both an FHSA and HBP can combine $40,000 from FHSA with $35,000 from HBP for $75,000 toward a down payment, doubled to $150,000 for a couple where both partners contribute.

FHSA versus TFSA versus RRSP

The FHSA combines features of both TFSAs and RRSPs. Contributions are tax-deductible like RRSPs. Withdrawals for a qualifying home purchase are tax-free like TFSAs. The trade-off compared to a TFSA is the 15-year participation limit and the requirement that withdrawals be for a first home purchase to remain tax-free. Non-qualifying withdrawals are fully taxable.

Frequently asked questions

What is the FHSA annual limit?: $8,000 per year. Lifetime cap is $40,000. Carry-forward is limited to one year and a maximum of $8,000.
What is the FHSA lifetime contribution cap?: $40,000. Reaching the cap takes a minimum of five years at $8,000 per year.
Who can open an FHSA?: A Canadian resident aged 18 or older (and under 71) who has not occupied a qualifying home owned by themselves or a spouse in the current or four preceding years.
What is a qualifying FHSA withdrawal?: A tax-free withdrawal for a first home purchase, requiring a written agreement to buy or build by October 1 of the year after withdrawal and intent to occupy within one year.
When must the FHSA close?: December 31 of the year after the first qualifying withdrawal, the 15th year after opening, or the year the holder turns 71, whichever comes first.
Can FHSA and HBP be used together?: Yes. Maximum combined per person is $100,000 ($60,000 HBP + $40,000 FHSA) toward the same first home purchase.
How does FHSA carry-forward work?: Carry-forward maxes out at $8,000 (one year). It does not compound and starts only after the FHSA is opened.

Spousal RRSP Attribution Rules and the Three-Year Rule Spousal RRSP lets a higher earner contribute to a spouse's RRSP using the contributor's room. Withdrawals within 3 calendar years of the last spousal contribution are taxed back to the contributor.
What Counts as Earned Income for RRSP Purposes Earned income for RRSP includes employment, self-employment, rental from real property, royalties, and certain disability pensions. It excludes investment income, OAS, CPP retirement, EI, and pension income.
TFSA Successor Holder vs Beneficiary on Death TFSA can name a successor holder (spouse only — takes over the TFSA tax-free) or beneficiary (anyone — gets the death balance tax-free, post-death growth taxable). Quebec residents must use a will.
TFSA In-Kind Contributions and Tax Consequences TFSA in-kind contribution is a deemed sale at fair market value: capital gains are taxable but capital losses are denied. Contribution amount equals FMV at transfer.
RRSP Home Buyers’ Plan: Withdrawal Limit and Repayment (2026) RRSP Home Buyers' Plan allows up to $60,000 tax-free withdrawal per person ($120,000 per couple). Repay over 15 years starting year 2 after withdrawal.