How the FHSA actually works.
Eligibility, contributions, withdrawals, and what happens if you don't end up buying — the full lifecycle in plain language.
Who can open one
You must be 18+, a Canadian resident, and you must not have owned a home you lived in during the current calendar year or any of the four previous calendar years. (Your spouse's ownership doesn't disqualify you.)
Contributions & carry-forward
$8,000/year, up to $40,000 lifetime. Unused room carries forward — but only by one year. So you can put $16,000 in one year if you skipped the prior year, but you can never bank more than that.
Qualifying withdrawal
To withdraw tax-free, you need a written purchase agreement for a qualifying home (must be your principal residence within one year), and the closing date must be within a year of the withdrawal.
If you don't end up buying
Roll the entire balance to your RRSP or RRIF — tax-free, with no impact on your RRSP room. Or withdraw it as taxable income. The deduction was real, the worst case is just an RRSP top-up.
The 15-year clock starts at opening
The account closes 15 years after you open it (or end of year you turn 71). Open early to start the clock — but only if you can imagine using it within that window.
Carry-forward only starts after opening
You don't accumulate $8K/year of room until you actually open the account. If you wait 5 years, you start at $8K — not $48K. Open it as soon as you're eligible, even if you don't contribute.