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First Home Savings Account

Blog by Paul Thomas, REALTOR | December 22nd, 2025

Here is information that is important if you or anyone  that you know is planning on buying their first home in Canada in the coming years:

First Home Savings Account (FHSA)

 

Key Details:

  • Annual Limit: $8,000.
  • Lifetime Limit: $40,000.
  • Carry-Forward: Unused room (up to $8,000) from previous years can be added to your current year's limit
  • Room Starts After Opening: You only start getting contribution room in the year you open your FHSA.
  • Tax Benefits: Contributions are tax-deductible, and withdrawals for a first home are tax-free. 

Example:
If you open an FHSA in 2025, you get $8,000 room. If you only contribute $2,000 in 2025, you have $6,000 carry-forward plus the new $8,000 for 2026, allowing a $14,000 contribution in 2026.