This registered plan is designed to assist aspiring first-time home buyers in Canada by allowing them to save for their first home without incurring taxes, up to certain specified limits. Commencing April 1, 2023, you can establish an FHSA to kick-start your journey to home ownership.

Eligibility for FHSA
To open an FHSA, you must meet specific eligibility criteria. A qualifying individual is defined as someone who fulfills the following conditions at the time of account initiation:
Minimum age of 18
Maximum age of 71 on December 31 of the current year
Resident of Canada
First-time home buyer

Opening an FHSA
You can open an FHSA through an FHSA issuer, such as a bank, credit union, trust, or insurance company. The chosen issuer will guide you on the available FHSA options and the permissible qualified investments that can be included.
While you are allowed to possess multiple FHSAs simultaneously, it’s essential to manage contributions prudently to avoid unintended tax implications. In any given calendar year, the total sum you contribute across all FHSAs, as well as transfers from your Registered Retirement Savings Plans (RRSPs) to your FHSAs, must not exceed your FHSA participation room for that year.
To register your FHSA, provide the issuer with:
Your Social Insurance Number
Date of Birth
Any necessary supporting documents to certify your eligibility

Contributions and Transfers
The annual FHSA participation room determines your maximum contribution or transfer capacity for the year, without causing an excess FHSA amount.

The annual contribution limit =$8,000

The lifetime FHSA limit =$40,000

Every contribution and RRSP transfer you make diminishes your remaining lifetime FHSA limit. If your yearly contributions and transfers exceed your FHSA participation room, an excess FHSA amount is generated.

Types of FHSAs
There are three FHSAs offered:
Depositary FHSA: Holds money, term deposits, or guaranteed investment certificates (GICs) in an account with a financial institution.
Trusteed FHSA: Involves a trust with a trust company as trustee. It holds qualified investments such as term deposits, GICs, bonds, mutual funds, and securities from designated stock exchanges.
Insured FHSA: Utilizes an annuity contract from a licensed annuity provider.

Self-directed FHSA
You can set up for a self-directed FHSA if you prefer active management of your investment portfolio. This allows you to buy and sell different qualified investments.

Closing an FHSA
Your maximum participation period starts with your first FHSA opening and ends on December 31 of the year during which any of the following happens:
15 years pass since opening your first FHSA
You reach 71 years of age
The year after your first qualifying FHSA withdrawal
To avoid unintended tax consequences, ensure all FHSAs are closed before your maximum participation period expires.

Non-residents and FHSAs
Only Canadian residents are eligible to establish an FHSA. Non-residents cannot open an FHSA account. If you are a non-resident of Canada, any taxable FHSA withdrawal will incur a withholding tax of 25% in the withdrawal year, unless reduced by a treaty