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FHSA for New Canadians and Newcomers (2026 Guide)

Updated

Newcomers can open a First Home Savings Account as soon as they are resident in Canada and meet the other conditions; there is no minimum period of residence. The rule most likely to catch a newcomer out is the first-time buyer test: it counts homes outside Canada, so a home you owned and lived in before moving can delay your eligibility. This page covers eligibility, timing, the deduction, and what happens if you leave. For the account as a whole, see the FHSA guide and the FHSA guides directory.

Eligibility for newcomers

RequirementRuleWhat it means for a newcomer
ResidencyYou are a resident of Canada.Based on your residential ties, not your immigration status
AgeYou are at least 18, or 19 where that is the legal age to enter a contract (British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Yukon, Nunavut, Northwest Territories). You are 71 or younger on December 31 of the year you open it.Same for everyone
First-time buyerYou didn't live, this calendar year or in the previous 4 calendar years, in a home you owned or jointly owned as your principal residence. Nor, in that period, in a home your spouse or common-law partner owned or jointly owned (this doesn't apply if you have no spouse or partner when you open the account).Homes abroad count
Citizenship or PRNot requiredTemporary residents who are resident for tax purposes can qualify

Residency for tax purposes depends on your ties to Canada (a home here, a spouse or dependants here, and similar), not on the type of permit you hold. Many people living in Canada on a work or study permit have significant residential ties and so are residents for tax purposes, but it is worth confirming your status with CRA if it’s unclear.

A home you owned abroad

CRA’s first-time buyer test covers a qualifying home “or what would be a qualifying home if located in Canada”. A house or apartment you owned and lived in before moving counts the same way a Canadian one would.

SituationFirst-time buyer for the FHSA?
Never owned a home, here or abroadYes
Owned a home abroad but never lived in it (for example, a rental)Yes
Owned and lived in a home abroad, and moved out before the look-back windowYes
Owned and lived in a home abroad within the look-back window, including in the year you arrivedNo, until the window passes
Your spouse or partner owns the home abroad you lived in together, within the windowNo, at opening (partner rules)

Example. You sold your home abroad and moved to Canada, and the last year you lived in it was year X. The look-back covers the current year and the previous 4, so you can open an FHSA from year X + 5. Until then, a TFSA or RRSP can hold the savings.

The test is set out in full, with the difference between opening and withdrawing, on qualifying home and first-time buyer rules. The HBP’s first-time buyer test also counts homes abroad.

When to open

Once you meet the conditions, opening sooner gives you more room: FHSA room starts in the year you open your first FHSA, with none for earlier years. That is a difference from the TFSA, whose room accrues for each year you are 18 or older and resident, whether or not you have an account. The timing trade-offs are on when to open an FHSA.

Contributions and the deduction in the first years

Many newcomers earn less in their first Canadian tax year. A contribution can be deducted for the year it is made or a later year. Contributions you don't deduct carry forward, even after your FHSAs are closed.

Example. You contribute $4,000 in your first year and don’t claim the deduction. Two years later your marginal rate is 33%. Claiming the $4,000 then saves about $1,320, against about $800 if you had claimed it in a year taxed at 20%. How deferral works is on the first-60-days rule and deduction timing.

Unused room carries forward, capped at $8,000:

YearContributionRoom carried to the next yearRoom the next year
Year you open$2,000$6,000$14,000

More examples are on FHSA carry-forward rules.

Residency status and the FHSA

StatusCan open an FHSA?Notes
Citizen or permanent resident living in CanadaYesIf the other conditions are met
Work permit holder living in CanadaGenerally yesMust be resident for tax purposes
International studentOftenDepends on residential ties; confirm your status
VisitorGenerally noUsually not resident for tax purposes
Non-residentNoCan’t open, but see below if you already have one

If you leave Canada

CRA states that if you become a non-resident after opening an FHSA, you can continue to participate normally in it, with one exception: you can’t make a qualifying withdrawal while you are a non-resident. For a qualifying withdrawal you have to be resident from your first qualifying withdrawal until you acquire the home.

SituationWhat happens
Non-resident, keeping the FHSAThe account continues; no qualifying withdrawal while non-resident
Taxable withdrawal as a non-resident25% withholding unless reduced by a tax treaty, reported on an NR4 slip
Direct transfer to an RRSP or RRIFNot taxed at the time of transfer

Whether to keep, transfer or cash out before leaving depends on your plans and the tax rules of the country you move to. The transfer and closing rules are on what happens to your FHSA if you never buy, and the tax on a cash withdrawal is on withdrawing from an FHSA not for a home.

Using the FHSA with the Home Buyers’ Plan

Newcomers with RRSP savings from Canadian work can use both programs for the same home, each under its own conditions; the FHSA and HBP comparison sets them side by side.

Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.