The First Home Buyers Savings Account (FHSA) was created to help Canadians aged 18 and up save up for their first home tax free. The FHSA is a registered account with an annual contribution limit of $8,000. There is a lifetime maximum contribution limit of $40,000. Contributions made to the FHSA are tax deductible which reduces your taxable income. When you purchase a home and utilize these funds, there are no repayment requirements on the withdrawals. If you decide that you do not want to purchase a house with the funds in your FHSA, you can transfer the money to a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF) without impacting your contribution room.
The FHSA not only empowers you to save for your first home, but it also allows you to benefit from tax advantages.