First Home Savings Account (FHSA): The Ultimate Guide to Saving for Your First Home
A comprehensive guide to understanding and maximizing your FHSA in 2025.
What is an FHSA?
The First Home Savings Account (FHSA) is a registered investment account designed specifically to help first-time homebuyers save for a down payment. Introduced in 2023, the FHSA combines the best features of an RRSP and TFSA, allowing you to save for a down payment with tax-deductible contributions and tax-free withdrawals when purchasing a qualifying home.
Key Benefits
Eligibility & Contribution Limits
Who Can Open an FHSA
Contribution Limits for 2025
Investment Options
Available Investments
- Stocks & ETFs
- Mutual Funds
- Bonds & GICs
- Cash Savings
Maximizing Your FHSA
- Start Early
- Invest Wisely
- Use Your RRSP Together
- Claim Tax Deductions Strategically
Important 2025 FHSA Considerations
- Unlike RRSPs, FHSA contributions made in the first 60 days of 2025 cannot be deducted on your 2024 tax return
- You can carry forward up to $8,000 of unused contribution room from previous years
- You can hold multiple FHSAs, but the contribution limits apply across all accounts
- Your FHSA must be closed by December 31 of the year of the 15th anniversary of opening your first FHSA, the year you turn 71, or the year following your first qualifying withdrawal
Need Help with Your FHSA Strategy?
At Altiora Wealth Management, we help individuals and families in Fredericton, New Brunswick, and across Atlantic Canada create customized FHSA and home savings strategies. Whether you're buying your first home or planning for the future, our expert advisors can help you maximize tax benefits and grow your savings efficiently.
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