First Home Savings Account opens to Canadians
The FHSA became available on 1 April 2023, combining an RRSP-style deduction with TFSA-style tax-free withdrawals. More than 300,000 accounts were opened in its first eight months.
DividendsCanada editorial · Published August 21, 2026
The First Home Savings Account became available to Canadians on 1 April 2023, the first new registered account introduced since the TFSA in 2009.
The account was enacted by Bill C-32, which received Royal Assent on 15 December 2022. Financial institutions began offering accounts the following April.
More than 300,000 Canadians had opened an FHSA by 5 December 2023, according to the Canada Revenue Agency.
Structure
The FHSA combines features of the two existing registered accounts. Contributions are deductible from income in the manner of an RRSP, and qualifying withdrawals for a first home purchase are tax-free in the manner of a TFSA.
Investment income earned inside the account is not taxed while it remains there.
For dividend investors
The FHSA is not covered by the Canada–US tax treaty exemption that applies to RRSPs and RRIFs. US-source dividends held in an FHSA are subject to 15% withholding tax at source, on the same basis as a TFSA, and the withholding cannot be recovered as a foreign tax credit because no Canadian tax is payable on the income.
The account carries an annual contribution limit and a lifetime limit, and participation is time-limited from the year an account is first opened.
Event dated April 1, 2023. Primary document: Canada Revenue Agency — First Home Savings Account.
General information, not advice. Tax treatment depends on your circumstances and can change. Verify figures against the CRA and issuer documents before acting.