FHSA vs Other Accounts
Learn about FHSA accounts and how they differ from other registered accounts
Disclaimer: The comparison below is summarized information, and certain additional rules and conditions might apply – some dependant on the province or territory of your residence. Consult with a licensed financial advisor for details pertaining your particular situation.
| FHSA | RRSP | TFSA | |
|---|---|---|---|
| Buying a house | Lifetime maximum of $40,000, used towards purchasing a qualifying home. | Withdraw from RRSP and use the amount under Home Buyers Plan. Maximum borrow $60,000 which should be paid back within 15 years | Contributions can be used to purchase a home. Withdrawn amounts open up the contribution room for the following year. |
| Contribution rules | Annual limits $8,000, with carry-forward. $40,000 lifetime limit. | 18% of your previous year's income OR set contribution limit ($33,810 for 2026), whichever is less. Carry-forward allowed, with no lifetime limits. | Contribution limit for 2026 is $7,000. Carry-forward allowed, with no lifetime limits. |
| Eligibility criteria | Canadian resident aged between 18 and 71, valid SIN, first time home buyer (CRA definition). | Canadian SIN, maximum age 71, valid SIN. | Canadian resident, minimum age 18, valid SIN. |
| Tax deduction | Tax-deductible, except transfers from RRSP. | Tax-deductible, except transfers from FHSA. | Not tax-deductible. |
| Advantages | Earnings in the account are tax-free. Amounts can be transferred to your RRSP or RRIF account. | Funds can be used to purchase a home under HBP. Account earnings are tax-deferred. | Earnings in the account are tax-free. Funds can be used for any purpose, including the purchase of a home. |
| Restrictions | Account will be closed at the end of the year where you turn 71, when your account turns 15 years-old, or the year after you have a qualified withdrawal - whichever comes first. Non-qualifying withdrawals are considered taxable income. | Withdrawals to purchase a home under HBP must be paid back within 15 years. If not returned, withdrawn amounts will be considered as taxable income. | Contributions to TFSA are not tax-deductible. |