The First Home Savings Account (FHSA) is a registered account designed to help first-time homebuyers save for a home. It combines the benefits of an RRSP (contributions are tax-deductible) and a TFSA (qualified withdrawals are tax-free). To open an FHSA, you must be a Canadian resident, at least 18 years old, and a first-time homebuyer. CRA defines a first-time homebuyer as someone who has not lived in a qualifying home they owned in the current year or in any of the four preceding calendar years. You can contribute up to $8,000 per year, with a lifetime limit of $40,000. Unused annual room carries forward (up to $8,000 carryforward). Contributions are tax-deductible. When you use the funds to buy a qualifying first home, withdrawals are tax-free. If you do not buy a home, you can transfer funds to an RRSP or RRIF without tax consequences. You may be able to use both the FHSA and the RRSP Home Buyers' Plan for the same home purchase.