Guide
FHSA explained: the First Home Savings Account in BC
The limits, who can open one, and how the tax-free withdrawal works.
Short answer: An FHSA lets a first-time buyer save up to $8,000 a year, $40,000 in total. You get a tax deduction going in and take it out tax-free for a home. You don’t pay it back.
See how an FHSA stacks up with your cash and RRSP against the minimum down payment for your price.
The limits
| Rule | Amount |
|---|---|
| Yearly limit | $8,000 |
| Most unused room you can carry forward | $8,000 |
| Most you can put in during one year | $16,000 |
| Lifetime limit | $40,000 |
The limits are per person and across all your FHSAs, not per account. Room starts the year you open your first one, not the year you turn 18, so opening early matters even if you only put in a little. If you go over, CRA charges 1% a month on the extra until you take it out or new room catches up.
Who can open one
- You live in Canada.
- You’re at least 18, or 19 where that’s the age to sign a contract. In BC it’s 19.
- You’re 71 or younger on December 31 of the year you open it.
- You’re a first-time buyer: you haven’t lived in a home you or your spouse or common-law partner owned, as your main home, this year or in the four calendar years before.
Taking it out for a home
A qualifying withdrawal is tax-free and you never repay it. You fill out Form RC725 with the financial institution. When you take the money out, you need a written agreement to buy or build a home in Canada that closes before October 1 of the next year. You can’t have bought it more than 30 days before, and you need to plan to move in within a year.
A BC example
Priya opens an FHSA in January 2026. She puts in $8,000 in 2026 and 2027, skips 2028, then puts in $16,000 in 2029 using her carried-forward room and $8,000 in 2030. That’s the $40,000 limit, plus whatever it earned. She also has $25,000 saved in cash.
Her target is a $650,000 condo in Surrey. The minimum down payment there is $40,000. With $65,000 between her FHSA and cash, she’s past the minimum and has some left for closing costs, which our closing costs calculator can estimate. As a first-time buyer she’d also likely qualify for the BC transfer tax exemption. See the PTT guide.
FHSA and the Home Buyers’ Plan together
You can use both for the same home. The FHSA doesn’t get paid back. The RRSP Home Buyers’ Plan lets you borrow up to $60,000 from your own RRSP, and that does get paid back over 15 years. The side-by-side guide covers the differences.
Not sure where to open one? Our FHSA provider list sets out what banks and online platforms offer.
Common questions
Can I open an FHSA at 18 in BC?
Not yet. You need to be at least 18, but CRA says it’s 19 where that’s the age to sign a contract, and in BC the age of majority is 19. You also can’t be older than 71 on December 31 of the year you open it.
What happens to my FHSA if I don’t buy a home?
You can move the money to your RRSP or RRIF tax-free without using RRSP room, or take it out as taxable income. The account has to close by the end of the earliest of: the year of the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal.
Does unused FHSA room carry forward?
Yes, but only up to $8,000. So the most you can put in during one year is $16,000, and room only starts counting once you’ve opened an account.
Can my partner and I both use an FHSA for the same home?
Yes, if you each qualify as a first-time buyer. Each of you has your own $40,000 lifetime limit, and you can each use the RRSP Home Buyers’ Plan for the same home too.
Sources
- Opening your FHSAs, Canada Revenue Agency. Checked October 2026.
- Participating in your FHSAs, Canada Revenue Agency. Checked October 2026.
- Withdrawals and transfers out of your FHSAs, Canada Revenue Agency. Checked October 2026.
- Closing your FHSA, Canada Revenue Agency. Checked October 2026.
- Age of Majority Act, RSBC 1996, c. 7, BC Laws. Checked October 2026.
Same rules as the calculators. Rules last verified: . See how the calculators work.
Keep reading
Estimates only. Not tax, legal or financial advice.
Rough numbers, not a quote or a lender’s decision. Check with a lawyer or notary and your lender before you rely on them. See Disclosures and Methodology.