FHSA, RRSP & TFSA: Why December 2025 Is the Perfect Time to Prepare for Homeownership
If buying your first home is on your list — even if it is in a year or two away — December 2025 is one of the most powerful moments to act.
Why? Because there’s a rare opportunity right now to open (or maximize) the right savings accounts before year-end, setting yourself up for future homeownership with more flexibility, more tax advantages, and less stress.
Let’s break down what you need to know — simply and clearly.
What Is an FHSA and Why It Matters for First-Time Buyers?
The First Home Savings Account (FHSA) is one of the most buyer-friendly tools ever introduced in Canada — and many people still haven’t taken advantage of it.
FHSA basics:
Annual contribution room of $8,000 per year
Designed specifically for first-time home buyers
Contributions are tax-deductible (like an RRSP)
Withdrawals for a qualifying home purchase are tax-free (like a TFSA)
Lifetime contribution limit of $40,000
Available to Canadian residents aged 18–71
FHSA funds must be used within 15 years of opening the account (or by age 71)
The key thing many people miss?
Your contribution room only starts once you open the account. Opening an FHSA before December 31, 2025, can make a meaningful difference — even if you don’t plan to buy right away!
Who Is Considered a “First-Time Home Buyer”?
This is a pleasant surprise for a lot of people. You are generally considered a first-time buyer if:
You have never owned a home, OR
You did not live in a home you owned in the current year or any of the previous four calendar years
This means:
Renters who owned years ago may qualify again
People who went through a separation or divorce may qualify
Those who inherited property but never lived in it may still qualify
Eligibility can be nuanced, so it’s worth confirming — especially before year-end.
December 2025 Matters Even If You’re Not Buying Yet because opening an FHSA before year-end can:
Start your lifetime contribution clock
Allow you to deduct contributions on your 2025 taxes
Give you more flexibility when you’re ready to buy
If you contribute as little as $25 now, you’re creating future opportunity with the carry over availability so don’t let the last few business days slip by without making an appointment with a financial institution to open an account!
FHSA vs RRSP vs TFSA: How They Work Together
These accounts aren’t “either/or.” They work best together.
FHSA:
Best for first-time buyers
Tax-deductible contributions
Tax-free withdrawals for a home purchase
RRSP
Can withdraw up to $60,000 for a first home
Must be repaid over time
Works well alongside an FHSA
TFSA
Flexible savings for down payments, closing costs, or emergencies
No tax deduction, but tax-free growth and withdrawals
Excellent complement to both FHSA and RRSP
A thoughtful strategy often uses all three, depending on income, timeline, and comfort level.
How This Supports Buying a Home in Winnipeg
One of Winnipeg’s biggest advantages is relative affordability compared to many Canadian cities, but preparation still matters.
A strong savings plan can help you:
Reduce mortgage stress
Increase your purchasing power
Compete confidently when the right home appears
Make decisions from a place of choice, not pressure
I see firsthand how much smoother the buying process is when clients take these steps early.
Thinking About Buying in the Next Few Years?
You don’t need to have everything figured out today but opening the right account before December 31st is a simple, proactive step that future-you will be grateful for.
If you’d like help:
Recommendations for where to go to start your account
Understanding first-time buyer eligibility
Talking through timelines and neighbourhoods
Building a realistic path to homeownership in Winnipeg
I’m always happy to help — even if buying is a “someday” goal.
This information is general in nature. For advice specific to your situation, it’s always best to consult with your financial or tax professional.