If you're a Canadian nurse dreaming of buying your first home, the First Home Savings Account (FHSA) is one of the best tools available. It combines the best parts of an RRSP and a TFSA.
How the FHSA works
- Contribute up to $8,000 a year, to a lifetime maximum of $40,000.
- Unused room carries forward, up to $8,000. So if you open an account and don't contribute this year, you could put in up to $16,000 next year.
- Contributions are tax-deductible, like an RRSP.
- Qualifying withdrawals to buy a first home are tax-free, like a TFSA.
- The account can stay open for up to 15 years, or until the end of the year you turn 71, whichever comes first.
Who can open one?
- Canadian residents aged 18 or older (19 in some provinces).
- First-time home buyers: generally, you or your spouse or common-law partner haven't lived in a home either of you owned in the current year or the previous four calendar years.
Tip: open an FHSA as soon as you think you might buy a home someday, even with a small amount. Contribution room only starts building once the account is open.
Why it's especially good for nurses
Nurses with lots of overtime and premiums can land in a higher tax bracket. An FHSA contribution gives you a deduction at that higher rate, then you withdraw the money tax-free for your home. That's a powerful combination.
Example: a $8,000 contribution at a 30% combined marginal tax rate saves about $2,400 in tax that year. You can choose to claim the deduction in a later year if you expect a higher income then.
Combine it with the Home Buyers' Plan
You can also use the Home Buyers' Plan (HBP) to withdraw up to $60,000 from your RRSP for a first home, and you can use it together with an FHSA. HBP withdrawals must be paid back to your RRSP over time, while FHSA withdrawals don't. Remember that a hospital pension like HOOPP reduces your RRSP room, so the FHSA may be your biggest tool.
Where to invest FHSA money
- Buying within 1 to 2 years: high-interest savings or GICs. Keep it safe.
- Buying in 5 or more years: you may choose a diversified mix of ETFs or index funds, accepting some ups and downs.
What if you don't buy a home?
You can transfer your FHSA to your RRSP or RRIF tax-free without using RRSP room. So even if your plans change, the money still helps your retirement.
Fund it with your shifts
Assign a few extra shifts a year to your FHSA. Four 12-hour overtime shifts could fund most of a year's contribution. See what they're worth with the nurse shift pay calculator.
The bottom line
If you're a first-time buyer, open an FHSA now, contribute what you can, and combine it with the Home Buyers' Plan when the time comes. Next, read our guide to buying a home as a nurse.
This article is for general education and isn't financial or tax advice. Rules are current as of 2026; confirm details with the CRA.