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Definition: FHSA (First Home Savings Account)

A First Home Savings Account (FHSA) is a Canadian account for first-time home buyers. Contributions are tax-deductible, and withdrawals for a home purchase are tax-free. You can contribute up to $8,000 annually, with a lifetime contribution limit of $40,000. To be eligible, you must be a Canadian resident, at least 18 years old, and a first-time home buyer.

An FHSA is not limited to a savings account. You can hold many different types of investments in an FHSA, such as GICs, stocks, bonds, and more.