Unlock $8,000 in Tax Savings - Perfect for First-Time Buyers (or Someone You Know)

November 26, 2025 | Posted by: Kelly Lukens - Trusted Red Deer Mortgage Broker

Unlock $8,000 in Tax Savings
Perfect for First-Time Buyers (or Someone You Know)

If you, or someone you care about, are thinking about buying a first home in Canada, the new First Home Savings Account (FHSA) could be one of the most powerful tools you use. It combines the best parts of an RRSP and a TFSA, and it can help you unlock up to $8,000 in tax-deductible contribution room each year toward your future down payment.
What is a First Home Savings Account?
An FHSA is a registered account that lets eligible first-time home buyers:
  • Contribute up to $8,000 per year within their FHSA participation room
  • Get an income tax deduction for eligible contributions, which can reduce what they owe at tax time
  • Grow those savings inside the account without being taxed on the investment income
  • Withdraw the funds tax-free when it is time to purchase a qualifying first home
Why this matters right now
With home prices and everyday costs rising, every dollar you can redirect from taxes into your own down payment fund matters. By using an FHSA strategically, you can:
  • Build a dedicated, tax-efficient down payment fund faster
  • Potentially receive a larger tax refund that can also be put toward your savings
  • Combine your FHSA with other programs, such as the Home Buyers’ Plan and land transfer tax rebates, where available
Perfect for you, or someone you know
You do not have to be ready to buy this year to benefit. Opening an FHSA as soon as you qualify can start the clock on your participation room and create more flexibility later. It is ideal if you are:
  • A first-time buyer planning to purchase a home in the next few years
  • A parent or relative who wants to help a child or family member get a head start
  • A friend or colleague who wants to share a smart tip with someone who is currently renting
How I can help you use this to your advantage
As your mortgage professional, I can walk you through:
  • Whether you qualify as a first-time home buyer for FHSA purposes
  • How an FHSA can fit together with your RRSP, TFSA, and overall mortgage strategy
  • How much you may want to contribute, based on your timeline and budget
  • What lenders look at when you are ready to turn those savings into a mortgage approval
Book a quick FHSA Mortgage chat
Not a first-time buyer yourself, but know someone who is dreaming about owning a home
Forward this email to them and invite them to reach out, I am happy to help.

Tax rules around the First Home Savings Account (FHSA) are set by the Government of Canada. This email is for general information only and is not tax or legal advice. Please consult a qualified tax professional or visit the Canada Revenue Agency website to confirm how the FHSA applies to your situation.

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Kelly Lukens - Red Deer Mortgage Broker

Kelly Lukens
Trusted Red Deer Mortgage Broker

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