If you’re saving to buy your first home in the GTA, the First Home Savings Account (FHSA) may be the best-kept secret in your favour. It combines the tax deduction of an RRSP with the tax-free growth of a TFSA — but only if you use it correctly.
What the FHSA is
The FHSA is a registered account for first-time buyers. Contributions are tax-deductible (like an RRSP), and withdrawals to buy a qualifying first home are completely tax-free (like a TFSA). It’s rare to get both benefits in one account.
The contribution limits
- Up to $8,000 per year, to a lifetime maximum of $40,000.
- Unused room carries forward (so if you open one and don’t contribute, you can catch up later).
- You have up to 15 years to use it before it must be closed or rolled into an RRSP.
Who qualifies
You must be a Canadian resident, at least 18, and a first-time buyer — meaning you (or your spouse) haven’t owned a home you lived in during the current year or the previous four. Newcomers to Canada can qualify too; see new to Canada.
The mistake most people make
Two big ones: not opening the account early (you can’t build room until you do), and not stacking it with the RRSP Home Buyers’ Plan. Used together, a couple can put a substantial tax-advantaged sum toward a down payment. Open the FHSA even if you can only put in a little — it starts your room and the clock.
How I help
When we build your pre-approval, I factor your FHSA and other savings into your true budget, and coordinate the timing so your down payment lands when you need it. It’s part of getting you into your first home with confidence.
Buying your first home in the GTA?
Let’s map your down payment — FHSA, RRSP, and all — and get you pre-approved for free.
Talk to Rajiv — freeBy Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116. General information, not financial advice; confirm current program limits and rules before acting.