Financing

What's a First Home Savings Account (FHSA)?

Quick Answer

Short answer: Tax-deductible contributions up to $8,000/year, tax-free growth and withdrawal.

Detailed Explanation

The FHSA combines the best of RRSPs and TFSAs: you deduct contributions from income (like RRSPs) but withdraw tax-free for your first home (like TFSAs). Lifetime limit is $40,000.

Must be 18+ and a first-time buyer. Unlike HBP, you don't repay withdrawals.

  • Can transfer unused RRSP room to FHSA
  • Account closes after 15 years or first home purchase
  • Works alongside HBP for maximum tax benefit

Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.

Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB


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Last updated: 2025-06-25

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Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB