🚀 First Home Savings Account FHSA Deadline is Dec 31

If you're a first-time home buyer, the FHSA (First Home Savings Account) is the single most powerful tool the government has introduced to help you save. But don't let a simple deadline mistake cost you thousands. Here’s the critical rule that trips up almost everyone: The FHSA tax deadline and carry over rules are NOT the same as your RRSP.

⏰ The December 31st Deadline

To get the tax deduction for the current year (which means a bigger refund in the spring!), you must contribute to your FHSA by December 31st of the calendar year.  Here is where FHSA and RRSP’s differ.

Feature	FHSA Rule (First Home Savings Account)	RRSP Rule (Registered Retirement Savings Plan)
Annual Contribution Limit	$8,000 per year (unused contributions up to $8,000 can be carried over ONLY IF AN ACCOUNT HAS BEEN OPENED)	18% of prior year's income (up to a max with carry-over capabilities)
Contribution Deadline	December 31st of the calendar year	60 days after December 31st (typically March 1st)
Tax Deduction on Contribution	Contributions are generally tax-deductible	Contributions are tax-deductible
Tax on Withdrawal	Tax-free for a qualifying home purchase	Taxable (unless under the Home Buyers' Plan (HBP))

The Bottom Line: Unlike the RRSP, contributions made in January or February cannot be claimed against the previous year's income. If you wait, you miss the deduction and delay your refund. Even if you can't contribute the full amount right now, the most important action you can take is to open your FHSA account immediately—even with just $1.

The Smart Saver Scenario

If you open your account in 2025 but contribute nothing, you still carry forward $8,000 of room into 2026.

This means in 2026, you can contribute up to $16,000! ($8,000 for the 2026 year + $8,000 carried forward from 2025). Waiting to open the account costs you that carry-forward room and slows down your saving goal.

Your Next Step: Act Now

1. Open Your FHSA Now: If you haven't opened one, do it right away to start accumulating your $8,000 carry-forward room

   
   

2. Plan Your Contribution: To maximize your tax refund, contribute to your FHSA before December 31st.

   
   

Consult your financial advisor to take full advantage of these government programs.