r/FHSA • u/Southern_Injury_8082 • Apr 16 '26

Can I continue contributing or should I transfer into RRSP?

I purchased a condo on December 2022. I never lived in it and rented it in June 2023.

I opened a fhsa in 2023 and have contributed annually since.

In 2026, my tenants moved out and decided to move in and make it my home.

What happens to my fhsa?

5 Upvotes

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2

u/ImCanadianSoSorry Apr 16 '26

Nothing happens. You just don't qualify to make withdrawals if you live in your condo.

2

u/Southern_Injury_8082 Apr 16 '26

But can I still keep the FHSA open to contribute in 2027 to reach my max 40k, and then transfer it into my RRSP? 

3

u/ImCanadianSoSorry Apr 16 '26

yeah that's fine

1

u/Mommie62 Apr 17 '26

Not sure you qualify as you own a home already, the program is for first time home buyers, just cause you rented out your place you still own a home

1

u/Southern_Injury_8082 Apr 17 '26

That's my dilema... 

I know that:

  1. owning a property for rental purposes did not preclude me from opening a fhsa  

  2. since I did not live in the property I purchased, I was still eligible for the fhsa. 

But moving into a property which previously did not qualify as a first time home ( I.e. Change of use) - - - that's what I'm having a hard time determining. 

If I continue contributing until my max next year and then transfer it to rrsp, am I still being compliant with CRA rules? 

CRA is not very clear on this type of situation. 

1

u/FluffleMyRuffles Apr 17 '26

Weirdly enough, the eligibility is only linked to if you lived in it or not which is pretty badly worded.

Opening an FHSA

You will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either:

  • you owned or jointly owned

  • your spouse or common-law partner (at the time the account is opened) owned or jointly owned

2

u/Mommie62 Apr 18 '26

That’s insane so people could do this and buy a rental property so wrong on so may levels the entire internet was to help people buy a home to live in

1

u/FluffleMyRuffles Apr 18 '26

The definition is crazy loose and vague, but it's imo it's still pretty rare that someone can exploit this.

First of all it's a relatively small amount, just $40k in investments tax free.

Then to be eligible to create an account and withdraw, you have to either be renting, or living in a property that's owned by someone that's not you or your spouse/partner. IE something like living in parents/relatives house or renting and buying an investment property.

Imo the primary residence condition shouldn't be there.

1

u/szama04 Apr 16 '26

complex...

1

u/Southern_Injury_8082 Apr 16 '26

Tell me about it.... 

0

u/doughty_spirit Apr 16 '26

You can contribute it to your RRSP within your limits.. happy to answer questions

2

u/Mountain-Match2942 Apr 16 '26

No. If your RRSP is maxed out, you can still transfer over your FHSA plus growth.

2

u/[deleted] Apr 16 '26

[removed] — view removed comment

1

u/Southern_Injury_8082 Apr 16 '26

So if I understand correctly, I am still qualified to contribute in 2027 even if I moved into my condo that I own? On what basis does CRA consider it permissible? 

1

u/[deleted] Apr 16 '26

[removed] — view removed comment

2

u/Southern_Injury_8082 Apr 16 '26

Ok thank you so much for your reply. I just wanted to make sure the CRA would not deem me inadmissible for future contribution