What is FHSA (First Home Savings Account)?
An FHSA is a Canadian account for first-time home buyers. Contributions are generally deductible like an RRSP, and a qualifying withdrawal to buy a first home is tax-free like a TFSA. The account has annual and lifetime limits and a maximum participation period, after which unused savings can be moved to an RRSP or RRIF or withdrawn as taxable income.
Why FHSA (First Home Savings Account) matters
It is the only Canadian account that combines a deduction on the way in with tax-free money on the way out, but only for a qualifying first home.