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UNITING FAMILIES WITH THEIR GOALS

UNITY FINANCIAL SERVICES

UNITING FAMILIES WITH THEIR GOALS

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🏠 Can You Open an FHSA If Your Spouse Already Owns a House?

🏠 Can You Open an FHSA If Your Spouse Already Owns a House?

Here’s What the CRA Really Says

Many Canadians are opening First Home Savings Accounts (FHSAs) to save thousands in taxes when buying their first home.
But what if your spouse already owns a home and you don’t?
Can you still open an FHSA and use it to buy your own place later?

Let’s clear up this confusion once and for all — based on official CRA rules.

💡 Quick Refresher: What Is an FHSA?

The First Home Savings Account is a tax-free way for Canadians to save up to $40,000 for their first home.

✅ You can contribute up to $8,000 per year.
✅ You get a tax deduction (just like RRSPs).
✅ When you use the money to buy your first home, the withdrawal is tax-free (just like a TFSA).

It’s like getting two tax benefits in one plan — which is why everyone’s talking about it.
(CRA Source)

đŸš« The Catch: The “First-Time Home Buyer” Rule

To open or use an FHSA, the CRA says you must be a first-time home buyer.
Here’s what that really means (straight from CRA’s official definition):

You must not have lived in a home owned by you or your spouse/common-law partner during the year you open the FHSA or in the previous four calendar years.
— Canada Revenue Agency

So the rule doesn’t just check ownership — it checks where you live and who owns that home.

đŸ‘©â€â€ïžâ€đŸ‘š Scenario: Husband Owns a House, Wife Doesn’t

Let’s apply this to a common situation.

  • The husband bought a home in his name.
  • The wife lives in that house but doesn’t own it.

Even though the wife has no property in her name, CRA still counts her as having lived in a qualifying home owned by her spouse.

✅ Result: She’s not considered a first-time home buyer under CRA rules.
❌ She can’t open or use an FHSA right now.

⏳ How to Qualify in the Future

If you want to become eligible again, CRA says you must:

  1. Move out of any home owned by you or your spouse.
  2. Wait four full calendar years without living in a spouse-owned property.
  3. Then, you’ll once again be considered a first-time home buyer — and you can open your FHSA.

So yes, you can qualify again, but only after that four-year window.

💬 Example

If you move out in 2025, you must not live in any spouse-owned home during:

  • 2025
  • 2026
  • 2027
  • 2028

Starting January 2029, you’d be eligible to open your FHSA and start contributing.

💾 Why This Matters

If you open an FHSA without qualifying, CRA can deny your tax benefits or even revoke your account’s registration.
So before you contribute, make sure you meet the “first-time buyer” definition correctly.

For many couples, it’s smarter to do joint planning — maybe the spouse who owns the home claims the Home Buyers’ Amount, and the other builds savings through RRSPs or TFSAs until they requalify for FHSA.

🧼 FHSA Highlights You Should Know

  • Contribution limit: $8,000/year, lifetime max $40,000
  • Carry forward: Unused room carries forward (up to $8,000)
  • Tax savings: Contributions are deductible, withdrawals for a qualifying home are tax-free
  • Deadline: Account must be closed after 15 years or by age 71

🏁 The Bottom Line

If your spouse owns a house and you live in it, you don’t qualify for the FHSA right now — even if your name isn’t on the title.

The good news?
After four calendar years of not living in a spouse-owned home, you can qualify again and enjoy all the tax benefits of an FHSA for your own first property.

🔗 References

All information verified from official CRA sources:

Unity Financial Services helps Canadians understand complex tax and savings strategies in simple, practical ways.
To learn more about FHSA, RRSP, TFSA, or homebuyer tax planning, contact us today at unityfs.ca