Tax-Free First Home Savings Account (FHSA)


The Tax-Free First Home Savings Account (FHSA) will allow eligible first-time home buyers to save $40,000 on a tax-free basis.

Bill C-32 was tabled on November 3, 2022 and the FHSA will be offered during 2023. It should be noted that the federal government may make some changes to it before it is available.

Keep me posted as soon as the FHSA is available

Some CELIAPP rules to remember


  • Be a resident of Canada
  • Be between the ages of 18 and 71
  • Meet the “first-time home buyer” criterion: you (or your spouse) have not owned a home in which you lived during the year your account is opened or in the preceding four years.


Annual contribution limit

Lifetime contribution limit

The annual contribution cap will apply to contributions in a given calendar year (January 1 to December 31).

Contribution deferral

Unused portions of the annual contribution limit can be carried forward to a maximum of $8,000.

For example, an individual contributing $4,000 to an FHSA in 2023 would be allowed to contribute $12,000 in 2024.

Deduction of contributions

Contributions made to an FHSA will entitle you to a deduction that will reduce your taxable income by the same amount.

An individual is not required to claim a deduction for the tax year in which a contribution is made. Such amounts can be carried forward indefinitely and deducted in a later tax year.


Amounts withdrawn will not be taxable if they are used to purchase an eligible home. They will be taxable if they are used for any other purpose, however.

There is no limit on the amount that can be withdrawn, depending on the return obtained.

In contrast to the Home Buyers’ Plan, withdrawals from an FHSA do not have to be repaid.

End of the plan

All FHSAs must be closed no later than December 31 of the year after the year of the first eligible withdrawal.

If the money has still not been used to purchase a first eligible property, an FHSA will cease to be an FHSA after December 31 of the year when the earlier of the following occurs:

  • The 15th anniversary of the opening of the first FHSA; or
  • The account holder’s 71st birthday.

Savings not used:

  • can be transferred into a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF), depending on the individual’s age, without affecting RRSP contribution room and with no tax payable in the year of transfer; OR
  • will have to be withdrawn on a taxable basis.

What to do while waiting for the arrival of FHSA?

Open a TFSA, if you haven't already, and you can contribute now to have an amount available when the FHSA launches later this year.

Want to know more?
Contact our Advisory Services team

On the phone

Call the Advisory Services team
514 788-6485
Toll free 1 800 291-0337

Regular Hours: Monday to Thursday, 8 am to 8 pm. Friday, 8 am to 5 pm.

Request information

An advisor and mutual fund representative will contact you as soon as the FHSA is available!


Advisory Services team