What is the FHSA? Best First Home Savings Account Rates in Canada – October 2026
If you're saving for your first home in Canada, the First Home Savings Account (FHSA) is one of the most powerful tools available. The FHSA lets first-time Canadian homebuyers save up to $40,000, tax-free, to put toward a down payment — combining the best of both the RRSP and TFSA: you get a tax deduction on contributions, and tax-free withdrawals when it's time to buy.
The annual contribution limit is $8,000, with a lifetime maximum of $40,000. For every dollar you contribute, you reduce your taxable income — potentially resulting in a tax refund of $1,700 to $3,800 depending on your tax bracket. Unused room carries forward to the following year (up to $8,000), and unlike the RRSP Home Buyers' Plan, FHSA withdrawals do not need to be repaid.
The single most important action is opening the account now — even with $0 — to start the contribution room clock. Every year without an open account is $8,000 of room permanently lost.
Our Top Pick: Wealthsimple FHSA
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