Federal service · Housing and property

First-time home buyer: FHSA and Home Buyers' Plan

Compiled by Mahmoud Halat, checked 13 October 2026

Short answer

First-time buyers can save for a home with a First Home Savings Account (FHSA), opened at a bank, credit union, trust or insurance company. You can put in $8,000 the first year, deduct it from your income and take it out tax-free to buy a home. The Home Buyers' Plan also lets you borrow up to $60,000 from your RRSPs and repay it later.

Who handles it

Canada Revenue Agency

Handles it everywhere in Canada.

Official link

First Home Savings Accountcanada.ca · checked 12 October 2026

Canada Service Map is independent and not a government website. The official page always has the final word.

Who can apply

To open an FHSA you must live in Canada, be at least 18 (19 where that is the legal age for contracts) and no older than 71 on December 31 of the year you open it.
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You count as a first-time buyer if, in this calendar year or the previous 4, you did not live in a home you or your spouse or partner owned as your main residence.
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You need a written agreement to buy or build a home in Canada, finishing before October 1 of the year after the withdrawal.
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Steps

Open an FHSA with an issuer such as a bank, credit union, trust company or insurance company. You give them your SIN, date of birth and any documents they need to confirm you qualify.
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To take money out tax-free for your home, fill out Form RC725 and give it to your FHSA issuer.
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Cost

Contribution limit: you can put up to $8,000 into your FHSAs in the year you open your first one. Contributions are generally tax-deductible; transfers from RRSPs are not.
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Withdrawal limit: the Home Buyers' Plan lets you withdraw up to $60,000 from your RRSPs to buy or build a qualifying home. You use Form T1036 to request the withdrawal.
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How long it takes

An FHSA can stay open until the end of the year of its 15th anniversary, the year you turn 71, or the year after your first qualifying withdrawal, whichever comes first. Close it by then to avoid tax.
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Home Buyers' Plan money is repaid to your RRSPs over 15 years. If your first withdrawal is in 2026, 2027 or 2028, repayments start in the fifth year after the withdrawal.
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Good to know

A qualifying FHSA withdrawal to buy a home does not have to be paid back, and there is no minimum time the money must stay in the account first.
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You can use both an FHSA withdrawal and the Home Buyers' Plan for the same home, as long as you meet the conditions for each.
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Questions people ask

How much can I put in an FHSA?

Up to $8,000 in the year you open your first FHSA. That room is shared across all your FHSAs, so opening a second account does not give you more. Your CRA account shows your room for later years.