Regulation

FHSA

First Home Savings Account

The First Home Savings Account, a registered account available since April 2023 to first-time home buyers. Contributions are tax-deductible (like an RRSP) and a qualifying withdrawal to buy a first home is tax-free (like a TFSA). Participation room is $8,000 a year, with a $40,000 lifetime limit.

The FHSA combines the best features of two accounts: you deduct contributions from taxable income now and withdraw tax-free for a qualifying first home later. Nothing is repaid, which is why many first-time buyers fill it before using the RRSP Home Buyers' Plan.

Room is $8,000 in the year you open your first FHSA. Room only starts accruing once an account is open, and up to $8,000 of unused room carries forward to the next year, so the most you can contribute in any one year is $16,000. Opening an account early, even with a small deposit, starts that clock.

Each eligible buyer has their own FHSA, so a couple who both qualify can hold up to $80,000 of lifetime contributions between them. You can use the FHSA and the Home Buyers' Plan for the same home, and an FHSA can stay open for up to 15 years (or until the end of the year you turn 71, if earlier).

Tax rules have more conditions (who counts as a first-time buyer, qualifying-withdrawal timing, and transfers to an RRSP if you don't buy); check CRA's pages or an accountant for your situation.

Worked example

Illustrative: you open an FHSA and contribute $8,000 a year for five years, reaching the $40,000 lifetime limit.

At an assumed 30% marginal tax rate, the deductions are worth about $12,000 in tax savings ($40,000 × 30%), and the $40,000 plus any investment growth can be withdrawn tax-free for a qualifying first home. Two eligible spouses doing the same could contribute $80,000 in total.

Illustrative figures only, rounded; not a quote or current rate. See today’s rates on our live board.

Sources

First Home Savings Account (FHSA) (Canada Revenue Agency)
Participating in your FHSAs (contribution room) (Canada Revenue Agency)

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B-20

OSFI Guideline B-20

OSFI's Residential Mortgage Underwriting Practices and Procedures guideline for federally regulated lenders (banks and federally regulated trust and loan companies). Its 2018 revision added the minimum qualifying rate (stress test) for uninsured mortgages, and it caps non-amortizing HELOC credit at 65% of the property value.

CMHC

Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation, the federal Crown corporation that provides mortgage default insurance (required when you put less than 20% down with a federally regulated lender) and runs national housing programs. The core eligibility rules for government-backed insured mortgages are set federally; CMHC publishes its own underwriting criteria on top.

FSRA

Financial Services Regulatory Authority

Ontario's mortgage broker regulator. Replaced FSCO in 2019. All Ontario brokerages, agents, and brokers operate under FSRA licensing. Mortgage Squad Advisors is FSRA-licensed #13737.

RRSP Home Buyers' Plan

RRSP HBP

A federal program letting first-time buyers withdraw up to $60,000 from their RRSP toward a down payment without paying tax — provided the funds are repaid to the RRSP over 15 years.

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