What Is an FHSA and Who Can Open One?
The First Home Savings Account, or FHSA, is a registered account designed for eligible first-time home buyers. Contributions can be deductible for tax purposes, and qualifying withdrawals for a first home can be tax-free when the rules are met.
That combination is why the FHSA is worth understanding early, especially if home ownership is part of a multi-year plan.
Who can open an FHSA?
The CRA says you must be a qualifying individual when the account is opened. That includes being a resident of Canada, meeting the age requirements and meeting the first-time home-buyer test.
What does ‘first-time home buyer’ mean?
For opening an FHSA, the test generally looks at whether you lived in a qualifying home that you or your spouse/common-law partner owned in the current year before opening the account or in the previous four calendar years. The detailed definition should be checked if your ownership history is complicated.
Why contributions matter at tax time
Eligible FHSA contributions can generally be deducted, subject to the contribution and deduction rules. Keep contribution records and make sure the amount claimed matches your available room.
Qualifying home withdrawals
To make a qualifying withdrawal, you need to meet the CRA conditions, including the first-time home-buyer test for withdrawals, a written agreement to buy or build a qualifying home, residency requirements and the intention to occupy the home as a principal residence.
FAQ
Is an FHSA the same as an RRSP?
No. They are different registered plans with different contribution and withdrawal rules.
Can I open an FHSA if I owned a home years ago?
Possibly, depending on the first-time home-buyer lookback rules and your living situation.
Are qualifying withdrawals taxable?
Qualifying withdrawals that meet the FHSA rules are generally tax-free.
Call to action
If you have an FHSA and want to understand how contributions affect your tax return, GROWS Financial can help review the tax-reporting side.
Related services: Personal Tax.
Related reading: How Can I Save Tax Legally in Canada?
Official sources for fact-checking
Last reviewed: October 21, 2026.