December 2025

If you’re hoping to buy your first home someday—whether in the near future or years down the road—the First Home Savings Account (FHSA) is one of the most powerful tools available to help you get there. However, many people don’t realize that simply opening the account is what unlocks the tax benefits.

The Deadline You Need to Know

Unlike RRSPs, where you get a 60-day grace period, the FHSA follows a strict calendar-year rule. You only start earning FHSA contribution room once the account is opened. So if you want access to the full $8,000 of contribution room for 2025, you must open your FHSA before December 31, 2025. If you wait until 2026, that $8,000 room is gone for good, even if you open the account later. The good news? Opening an FHSA is free, and you don’t need to contribute immediately. You’re just securing future room and tax advantages.

Why the FHSA Is So Powerful

Once opened, the FHSA gives first-time buyers:

👉🏼$8,000 per year in room

👉🏼$40,000 lifetime maximum

👉🏼Tax-deductible contributions

👉🏼Tax-free growth & tax-free withdrawals when used to buy your first home

It’s the only account in Canada where your money can go in tax-deductible and come out tax-free. To open one, you must be a Canadian resident, at least 18 year of age, have a SIN, and be considered a first-time homebuyer.

Carry-Forward Boost

If you don’t use all your room in a year, you can carry forward up to $8,000. Example: contribute $3,000 this year and you’ll have $13,000 next year.

Other Quick Facts

📌FHSA contributions must be made by December 31 each year

📌The account can stay open for up to 15 years

📌After you make a qualifying withdrawal to buy a home, the account must close by the end of the following year 

📌You can track your contribution room on your CRA My Account

The Simple Takeaway

If homeownership is on your radar at all, the smartest move you can make is: 

👉🏼Open your FHSA before December 31 so you don’t lose this year’s $8,000 contribution room. It’s an easy step that future-you will be grateful for.

Need Help?

If you’re unsure whether you qualify or want guidance on how the FHSA fits into your home-buying plan, the Roch Mortgage Team is always happy to help. Reach out anytime!