The First Home Savings Account (FHSA) is a new tax-free savings tool designed to help Canadians buy their first home. Contributions are tax-deductible like an RRSP, and withdrawals—including investment gains—are tax-free when used to purchase a qualifying first home. You can contribute up to $8,000 per year, to a lifetime maximum of $40,000.

The FHSA combines the best features of the RRSP and TFSA, making it a game-changing option for first-time buyers. It’s also flexible—if you don’t end up using it for a home, the funds can be transferred to an RRSP or RRIF without affecting your contribution room. It’s a smart, tax-efficient way to build a down payment faster.