The First Home Savings Account, explained for Ontario buyers
Doorvia Guides · September 3, 2026
An FHSA gives you a tax deduction going in and tax-free growth and withdrawals coming out - the best of both registered accounts.
The First Home Savings Account is a registered account designed specifically for a first home. Contributions are deductible from income like an RRSP, and qualifying withdrawals for a first home purchase are tax-free like a TFSA.
The contribution limit is $8,000 per year with a $40,000 lifetime maximum, and unused room carries forward once the account is open. Two first-time buyers purchasing together can each hold one, which doubles the available room.
Open the account as early as you can even if you only put in a small amount, because contribution room begins accumulating only once the account exists. Confirm your own eligibility rules and deadlines with your financial institution before relying on the deduction.
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