⚠️ Taxable Withdrawal Risks:
If you withdraw funds from your FHSA and fail to meet the CRA qualifying home rules, the entire amount will be treated as taxable income. Your bank will deduct withholding taxes (up to 30%) and issue a T4FHSA slip.
Withdrawal Eligibility Checker
Answer the questions below to verify if your home purchase qualifies for a tax-free withdrawal:
Key FHSA Withdrawal Rules & Timelines
CRA regulates the timing and filing process for qualifying withdrawals:
- Form RC728 Submission: You must complete CRA Form RC728 (*"Designated Withdrawal from an FHSA"*) and submit it to your FHSA issuer (bank/brokerage) before they can release the funds tax-free.
- 30-Day Limit: You must make the withdrawal **no later than 30 days after the date you acquire the home**.
- Relationship with Home Buyers' Plan (HBP): Unlike in previous draft proposals, you **are** allowed to use both the FHSA tax-free withdrawal and the RRSP HBP withdrawal (up to $60,000) on the same home purchase.
FHSA Specifications
Qualifying FormForm RC728
Occupancy DeadlineWithin 1 Year
Withdrawal WindowMax 30 days post-buy
HBP Combined UsePermitted