FHSA Beats TFSA for Home Savings

For Canadians saving a first down payment, the first-home account blends tax-deductible contributions with tax-free qualifying withdrawals, helping buyers build funds faster.
This account combines retirement-account-style deductions with tax-free qualifying withdrawals, but money taken for anything other than a home purchase becomes taxable income.
Key limits: $8K yearly, $40K lifetime, up to 15 yr of contributions, and carried-forward room capped at $8K, allowing $16K in one year.
If buying plans change, unused funds can transfer to a retirement account tax-deferred, while moving money into a tax-free account requires a taxable withdrawal.
For first-home savings, prioritizing the first-home account can accelerate down payment growth and tax savings; after purchase, the tax-free account supports broader long-term goals.