If buying your first home is even remotely on your radar, this is one deadline you shouldn’t ignore. Opening a First Home Savings Account before December 31 could unlock thousands in future tax savings, and once the year passes, you cannot get that room back.
What Is an FHSA?
FHSA stands for First Home Savings Account. It is a registered account designed to help first-time buyers save for a down payment.
It combines two powerful benefits. Money you contribute may reduce your taxable income, similar to an RRSP. Withdrawals used for a qualifying first home can be tax free, similar to a TFSA.
What to Do Before December 31
Open your FHSA before year end. Some financial institutions allow you to open one with zero dollars, depending on the bank.
Opening the account before December 31 is what creates your contribution room, even if you do not fund it right away.
Why This Deadline Matters
If you open an FHSA in 2025, your contribution room starts immediately. This can set you up for up to $16,000 of contribution room by 2026.
If you wait until 2026 to open one, you permanently lose the opportunity to create 2025 contribution room. You cannot go back and recover it later.
Already Opened an FHSA in 2024?
Only up to $8,000 of unused contribution room carries forward into the next year.
If you opened your FHSA but have not yet contributed, a year end deposit could make a meaningful difference in your long term tax savings.
Want the Easy Path?
Reply FHSA and we will connect you with our trusted lender to confirm eligibility, the best place to open an account, and the fastest steps before the deadline.
You can also send us a message and we would be happy to chat.
