Tax Free First Home Savings Account

A Tax-Free First Home Savings Account (TFFHSA) allows a first-time home buyer to set money and receive a tax deduction. C

  • Contributions are tax deductible (like an RRSP);
  • Withdrawals (when you buy a house) are tax free (like a TFSA)
  • Lifetime contribution limit: $40,000
  • Annual contribution limit: $8,000 (but you can catch up on contributions from prior years)
  • One time only; you can only use a TFFHSA to buy one home in your lifetime;
  • You can invest in stocks, bonds, ETFs, GICs (like a self-directed TFSA or RRSP)
  • Can remain open for 15 years, or until you turn 71 years old.

Should I Use a Tax-Free First Time Home Savings Account?

Yes, if:

  • You or your spouse have never owned a home, or haven’t owned a home in the previous four years;
  • Saving for a home is a greater priority than saving for retirement, or for your children’s education;
  • You are confident that you can purchase a home within 15 years


Debt Free in 30 podcast discussing TFFHSAs:

Department of Finance: Design of the Tax-Free First Home Savings Account

Tweet thread from Mark McGrath summarizing the Tax-Free First Home Savings Account

CMHC requirements for homeowner mortgage loan insurance

RRSP Home Buyers’ Plan