Make Your Refund Work Harder
Getting a tax refund this year? Before it disappears into your everyday spending, consider giving that money a mission: helping you buy your first home. And there's a smart, strategic way to stretch that refund further—by putting it into a First Home Savings Account (FHSA).
Many Canadians are familiar with saving for a down payment through a traditional savings account or RRSP. But with the recent launch of the FHSA (First Home Savings Account), first-time homebuyers now have a powerful new tool to grow their savings faster—and save on taxes at the same time.
What Is an FHSA?
The First Home Savings Account (FHSA) is a registered savings account introduced by the Canadian government in 2023. It combines the best of both worlds from the RRSP and TFSA:
Contributions are tax-deductible, like an RRSP
Withdrawals for a first home are tax-free, like a TFSA
The annual contribution limit is $8,000, with a lifetime cap of $40,000
It’s specifically designed to help Canadians buy their first home, and if used properly, it can maximize your tax savings while growing your down payment faster.
Why Your Tax Refund Belongs in an FHSA
If you’re planning to use your tax refund toward a down payment—great thinking. But if you simply deposit it into a regular account, you're missing out on a valuable opportunity.
By contributing that refund to an FHSA, you not only put the money toward your home—but you also get another tax deduction next year for that same amount. It’s like putting your refund to work and then letting it work overtime.
Here’s a quick example:
You receive a $3,000 tax refund
You deposit it into your FHSA
You reduce your taxable income by $3,000 next year
You’re now building your down payment and setting yourself up for another refund
Smart Money, Smart Move
Think of it this way: you’re not just saving—you’re doubling down on your financial future. And if you pair your FHSA with a clear homebuying plan, you’re already ahead of the game.
Not sure where to start or how much you can contribute? I’m happy to help you run the numbers and figure out the best strategy based on your income, homeownership timeline, and existing savings.
Make Your Refund Work Harder
Your tax refund doesn’t have to sit in your account waiting to be spent. With an FHSA, it becomes part of your homebuying strategy—giving you tax advantages today and equity-building potential tomorrow.
