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Transfer RRSP Savings to an FHSA: Room and Tax Rules

A direct RRSP-to-FHSA transfer can avoid immediate tax, but it uses FHSA room, is not an FHSA deduction and does not restore RRSP room. A cash withdrawal followed by a deposit is different.

You may be able to transfer investments directly from your RRSP to your First Home Savings Account (FHSA; French acronym CELIAPP), subject to available FHSA participation room. A correctly completed direct transfer is generally tax-deferred at the time of transfer, but it is not a deductible FHSA contribution.

What the transfer changes

  • The transferred amount uses FHSA participation room.
  • It does not restore the RRSP contribution room used when the money originally entered the RRSP.
  • You cannot claim a new FHSA deduction for the direct RRSP transfer.
  • Exceeding FHSA room can create an excess amount and tax consequences.

Direct transfer versus cash withdrawal

Ask both financial institutions to complete the transfer directly and retain the confirmation. If you withdraw RRSP money to your bank account and then contribute the cash to an FHSA, the RRSP withdrawal is generally taxable and the separate FHSA contribution may use room and potentially qualify for a deduction if it meets the rules. Do not assume those two routes are equivalent.

Compare with keeping the money in the RRSP

A transfer may make sense for someone who qualifies for an FHSA and plans a qualifying home purchase, but it may also reduce retirement savings flexibility. Compare the Home Buyers’ Plan, FHSA contribution room, expected tax rates and liquidity needs. The transfer does not itself make you eligible for a qualifying withdrawal; the home-purchase conditions still apply.

Before authorizing a transaction, review the CRA’s official pages on transfers into an FHSA and RRSP and other registered-plan transfers. Version française →

Sources and limits

Official sources: Canada Revenue Agency, transfers into FHSAs and RRSP/registered-plan rules, checked October 7, 2026. Confirm available FHSA room, transfer paperwork and qualifying-withdrawal rules before proceeding.

General information based on federal and national rules; provincial rules may differ. Confirm with the official body before acting.