FHSA 2026: The Ultimate Down Payment Cheat Sheet for Canadians
The FHSA combines the best features of an RRSP and a TFSA. Find out how first-time homebuyers can save up to $40,000 tax-free for their down payment.
The Best of Both Worlds
The First Home Savings Account (FHSA) is a game-changer. Like an RRSP, your contributions are tax-deductible (lowering your income tax). Like a TFSA, your withdrawals are completely tax-free as long as the money is used to buy a qualifying first home.
Strategy: Combine with Your Spouse
If you are married or common-law, both you and your partner can open an FHSA. Together, you can contribute $16,000 per year, for a lifetime total of $80,000. When you withdraw the money plus the investment growth tax-free, you could have a massive down payment ready in 5 years.
Frequently Asked Questions
Who qualifies for an FHSA in 2026?
You must be a resident of Canada, at least 18 years old, and a first-time homebuyer (meaning you or your spouse haven't owned a home you lived in during the year the account is opened or the preceding four calendar years).
How much can I contribute to an FHSA?
You can contribute up to $8,000 per year, with a lifetime maximum of $40,000. You can carry forward up to $8,000 of unused contribution room from the previous year.
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