FHSA - First Time Home Buyer In Canada
Buying your first home is one of life’s biggest milestones — and now, saving for it just got easier.
At SMM Insurance, we help Canadians take advantage of the First Home Savings Account (FHSA) — a powerful government-registered plan that combines the best features of an RRSP and a TFSA, giving you tax deductions now and tax-free withdrawals later.
If you’re planning to buy your first home in Canada, the FHSA is your smartest first step.
What Is the First Home Savings Account (FHSA)?
The First Home Savings Account (FHSA) is a registered savings account created by the Government of Canada to help first-time home buyers save for a down payment faster.
With an FHSA, you can:
Contribute up to $8,000 per year, up to a lifetime maximum of $40,000
Claim tax deductions for your contributions (just like an RRSP)
Withdraw funds tax-free when buying your first home (just like a TFSA)
Carry forward unused contribution room to future years
💡 Want to understand how the FHSA fits into your overall investment strategy? Visit our RRSP, TFSA & Non-Registered Investments page
How Does the FHSA Work?
Open an FHSA with a licensed financial institution or insurance advisor.
Make annual contributions (up to $8,000) to build your savings tax-free.
Earn tax-sheltered growth on investments inside your FHSA — such as mutual funds or segregated funds.
Withdraw funds tax-free when purchasing your first qualifying home in Canada.
Your FHSA must be used within 15 years of opening the account or by age 71, whichever comes first.
FHSA vs. RRSP vs. TFSA
Feature FHSA RRSP TFSA
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Purpose Save for first home Retirement savings Flexible savings/investments
Tax Deduction Yes Yes No
Tax-Free Withdrawals Yes (for first home) Yes (Home Buyers’ Plan) Yes (anytime)
Lifetime Limit $40,000 Based on income $95,000+ (as of 2025)
Combine your FHSA with RRSP or TFSA contributions to accelerate your homeownership savings plan.
FHSA in Canada – Save for Your First Home Tax-Free
Who Is Eligible for an FHSA in Canada?
To open an FHSA, you must:
Be a Canadian resident aged 18 or older
Be a first-time home buyer (you or your spouse have not owned a home in the past four years)
Have a valid Social Insurance Number (SIN)
If you’re already investing for your family’s future, learn how Child Insurance and RESPs can support your long-term financial plan — visit our RESP & Child Insurance page .
What Can You Invest in Through an FHSA?
Just like RRSPs and TFSAs, you can hold a variety of investments in your FHSA, including:
Segregated Funds
Mutual Funds
GICs (Guaranteed Investment Certificates)
Stocks, Bonds, and ETFs
Explore the stability and protection benefits of Segregated Funds on our Segregated Funds page .
Start Saving for Your First Home Today
Take advantage of the First Home Savings Account (FHSA) and make your dream of homeownership a reality.
At SMM Insurance, we’ll help you open your FHSA, choose the right investments, and maximize your tax savings.
📞 Contact us today or request a free consultation to start building your tax-free first home savings plan..