A tax-advantaged savings account specifically for first-time home buyers in Canada.
Introduced in 2023, the FHSA allows first-time buyers to contribute up to $8,000 per year (lifetime max $40,000). Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). This is the only Canadian account that is tax-deductible going in AND tax-free coming out. You can combine FHSA withdrawals with the Home Buyers Plan (HBP) for up to $100,000 in tax-advantaged down payment funds.
Related terms: Down Payment | Home Buyers' Plan (HBP)