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Do FHSA Funds Need to Sit Before You withdraw?
- Brandon Forler
- Aug 9
- 2 min read
Short answer: No. For a qualifying First Home Savings Account (FHSA) withdrawal to buy your first home, the CRA does not require your contribution to be on deposit for any minimum number of days. You can contribute and, if you meet the qualifying conditions, withdraw right away. The key timing rules you do need to follow
To make a qualifying, tax-free withdrawal, you must:
Have a written agreement to buy/build a qualifying home with a closing or completion date before October 1 of the year after your withdrawal.
Not have acquired the home more than 30 days before the withdrawal (you can withdraw up to 30 days after closing).
Be a Canadian resident at the time of withdrawal and intend to occupy the home as your principal residence within one year.
Submit Form RC725 to your FHSA provider.
After your first qualifying withdrawal: your FHSA must be closed by December 31 of the following year (any remaining funds can generally be transferred to your RRSP/RRIF tax-deferred).
FHSA vs. RRSP Home Buyers’ Plan (HBP)
Many people confuse FHSA rules with the HBP. Under the RRSP HBP, contributions generally need to be in your RRSP for at least 90 days before withdrawal to count. The FHSA has no such 90-day hold rule—that’s a big planning advantage if you’re close to firming up a purchase.
Practical Alberta example
Say you’re closing on a Calgary condo on September 15. You could contribute to your FHSA days before closing, then request a qualifying withdrawal on or before October 15 (30 days after closing), provided you filed RC725 and meet the other conditions noted above.
Pro tips
Coordinate the RC725 paperwork and withdrawal date with your lawyer/realtor so funds land when needed.
After a qualifying withdrawal, avoid new FHSA contributions—they’re not deductible once you’ve made your first qualifying withdrawal.
Need help mapping the dates? Book a free consultation. I’ll line up your FHSA withdrawal with your purchase timeline and keep everything CRA-compliant.
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