FHSA deadline - December 31, 2026: what Alberta first-time buyers should know

Short answer: If you are a first-time buyer in Calgary, Edmonton, Red Deer or anywhere else in Alberta and you expect to buy in the next few years, check whether opening a First Home Savings Account (FHSA) before December 31, 2026 makes sense for you. According to the Canada Revenue Agency (CRA), you get $8,000 of FHSA room in the year you open your first account, no room builds up before that, and contributions for a year must be made by December 31 of that year. Unused room (up to $8,000) carries forward to the next year.

What an FHSA is

The CRA describes the FHSA as a registered plan that lets first-time home buyers save to buy or build a qualifying first home tax-free, up to certain limits (CRA). In plain terms:

• Contributions are generally tax-deductible, much like RRSP contributions. You can claim them for the year you contribute or a later year (CRA, tax deductions).
• A qualifying withdrawal to buy your first home is tax-free and doesn’t have to be paid back (CRA, withdrawals).
• Transfers from your RRSP into an FHSA are allowed but are not deductible, and they use up the same room as contributions (CRA, participation room).

Why December 31 matters

Two FHSA rules make the calendar year important:

1. Room starts when you open the account. Your FHSA participation room in the year you open your first FHSA is $8,000. In that first year, your carry-forward is $0, so there is no room for years before you opened one (CRA).
2. No 60-day grace period. The FHSA contribution period runs from January 1 to December 31. Unlike an RRSP, contributions made in the first 60 days of 2027 can’t be deducted on your 2026 return (CRA).

The CRA’s own example shows the effect: someone who opened a first FHSA in June 2026 and contributed nothing that year saw FHSA room of $16,000 for 2027 (CRA). Had they waited until January 2027 to open the account, their room for 2027 would have been $8,000. Opening an account is what starts the clock; you don’t have to contribute in the year you open it.

Key FHSA numbers (CRA)

Sources: CRA, Participating in your FHSAs; CRA, Tax deductions for FHSA contributions; CRA, Withdrawals and transfers out of your FHSAs; CRA, Closing your FHSAs.

Your room applies across all of your FHSAs combined, and only you can contribute to your own FHSA. You can see your room in your CRA account or on your notice of assessment once you’ve filed. You also need to file Schedule 15 with your return for the year you open your first FHSA, even if you didn’t put any money in (CRA).

Who can open an FHSA

According to the CRA, when you open the account you must be (CRA, Opening your FHSAs):

• a resident of Canada;
• at least 18 (or the age of majority in your province) and no older than 71 as of December 31 of the year you open it; and
• a first-time home buyer: you didn’t live in a home you owned or jointly owned as your principal residence in the current year or the previous four calendar years. If you have a spouse or common-law partner, the same test applies to a home they owned that you lived in.

Accounts are opened through an FHSA issuer, such as a bank, credit union, or a trust or insurance company. Couples each open their own FHSA, and each can make a qualifying withdrawal for the same home if they both meet the conditions (CRA).

Using your FHSA to buy in Alberta

To take the money out tax-free, the CRA says all of these conditions must be met at the time of the qualifying withdrawal (CRA):

• You are still a first-time home buyer under the withdrawal test (you didn’t live in a home you owned as your principal residence in the current year, other than the 30 days right before the withdrawal, or the previous four years).
• You have a written agreement to buy or build a qualifying home in Canada, with the purchase or completion date before October 1 of the year after the withdrawal.
• You didn’t acquire the home more than 30 days before the withdrawal.
• You stay a resident of Canada until you acquire the home, and you plan to live in it as your principal residence within one year.
• You fill out Form RC725 and give it to your FHSA issuer.

Qualifying homes include detached and semi-detached houses, townhouses, condo units, mobile homes and apartments in small multi-unit buildings, whether existing or under construction. There is no minimum time money has to stay in the FHSA before a qualifying withdrawal. If a condition isn’t met, the withdrawal may be taxable, so plan the timing with your lawyer, your FHSA issuer and a tax professional before you firm up a purchase.

For a mortgage, your FHSA savings usually go toward your down payment and closing costs. Lenders will want to see where the down payment came from, so keep your FHSA statements handy when you apply for pre-approval.

Combining the FHSA with the RRSP Home Buyers’ Plan

The CRA confirms you can withdraw from your RRSPs under the Home Buyers’ Plan (HBP) and make a qualifying FHSA withdrawal for the same home, as long as you meet the conditions for each (CRA, Home Buyers’ Plan). The main differences:

Source: CRA, The Home Buyers’ Plan; CRA, Withdrawals and transfers out of your FHSAs.

Whether to put new savings into an FHSA, an RRSP or both, and whether to move existing RRSP money into an FHSA, depends on your income, your tax bracket and your timeline. That’s a question for a tax professional; this article doesn’t give tax advice.

The Alberta angle

• No land transfer tax. Alberta doesn’t charge a provincial land transfer tax. Buyers pay Land Titles registration fees instead, set by the Government of Alberta fee schedule, so more of what you save can go to your down payment. Legal fees, an inspection and the property tax adjustment still apply; see closing costs in Alberta.
• Same federal rules province-wide. The FHSA is a federal program, so the rules are the same whether you’re buying a condo in Calgary, a starter home in Edmonton or Red Deer, or an acreage in a smaller Alberta community.
• Know your numbers early. Your FHSA plan works best alongside a realistic budget. Check today’s posted rates in Alberta and get a pre-approval so you know your price range before you shop.

Year-end checklist for first-time buyers

1. Check that you qualify as a first-time home buyer under the CRA rules.
2. If you plan to buy in the next few years, consider opening an FHSA before December 31, 2026, even with a small amount or none, so your room starts this year.
3. Make any 2026 contributions by December 31; there is no 60-day grace period.
4. Stay within your room. Remember that RRSP transfers count toward it too.
5. Talk to a tax professional about deductions and about combining the FHSA with the HBP.
6. When you’re ready to buy, read our first-time home buyer guide and get pre-approved.

Next steps

• Start your pre-approval online (secure Pineapple application, opens in a new tab)
• Book a 30-minute phone call
• Book a 1-hour appointment
• Call or text 403-438-0761, or email johnantle@gopineapple.com