FHSA basics for a first home

Opening and withdrawing use different tests

To open, you must be a Canadian resident, at least 18 and no older than 71 at year end; some jurisdictions require age 19 to enter the contract. The opening first-home test looks at the current and previous four calendar years and homes you lived in as a principal residence owned by you or your current spouse/common-law partner. A home abroad can count. CRA: opening your FHSAs

For a qualifying withdrawal, the first-home test concerns a principal home you owned or jointly owned, with a specific 30-day exception. Do not reuse the opening test: review CRA’s withdrawal checklist separately. CRA: FHSA withdrawals and transfers

Room begins when you open

First-year participation room is $8,000 when your first FHSA opens, shared across all your FHSAs. It does not accumulate from age 18 before opening. Contributions and RRSP-to-FHSA transfers both use it. Ordinary unused participation room carry-forward is capped at $8,000, and a $40,000 lifetime limit applies. Excess amounts, taxable withdrawals and re-participation can complicate the calculation; use CRA’s actual calculation for those cases. CRA: participating in your FHSAs

A deduction is not a second contribution allowance

Eligible contributions can generally be deducted for the contribution year or a later year. FHSA contributions use the calendar year; the RRSP first-60-days convention does not apply. RRSP transfers are not a new deduction, and contributions after a first qualifying withdrawal are not deductible. A deduction’s value depends on your tax situation. CRA: deductions for FHSA contributions

Before taking money out

A qualifying withdrawal requires the issuer form, a written agreement to buy/build a Canadian qualifying home before October 1 of the following year, the required residency and intention to occupy within one year. You must not have acquired it more than 30 days before withdrawing. Meet all CRA conditions; a non-qualifying withdrawal is generally taxable. CRA: FHSA withdrawals and transfers

The participation period ends at the earliest applicable December 31: the year of the first account’s 15th anniversary, the year you turn 71, or the year after your first qualifying withdrawal. Before closing, a qualifying direct transfer to your RRSP/RRIF can generally defer tax without using RRSP room; excess cases need specific instructions. A cash withdrawal and redeposit are different. CRA: closing your FHSAs

Compare the purpose, then the holding

TFSA contributions are not deductible and ordinary withdrawals follow TFSA rules. RRSP contributions may be deductible and ordinary withdrawals are generally taxable. FHSA combines a home-specific withdrawal pathway with its own clock. Read each account’s canonical guide before moving money; do not rank accounts by name alone.