CRA notes that an individual can continue contributing to an FHSA after acquiring an owner-occupied home

The taxpayer acquired a qualifying home as principal place of residence and was thus regarded as having an “owner-occupied home” – which adversely affected the ability to make a “qualifying withdrawal”. However, CRA noted that such acquisition would not cause the “maximum participation period” as defined in s. 146.6(1) (being the first to occur of the 14th anniversary of entering into the qualifying arrangement, attaining age 70, and making a qualifying withdrawal) to terminate. Indeed, the individual could continue to contribute to the FHSA during that maximum participation period subject to the “annual FHSA limit”.

Before the end of the maximum participation period, the amounts held in the FHSA (to the extent not an “excess FHSA amount”) could be transferred by direct transfer to an RRSP or RRIF of the individual pursuant to ss. 146.6(7) and (8).

Neal Armstrong. Summary of 14 May 2026 External T.I. 2025-1054171E5 F under s. 146.6(1) – annual FHSA limit – (c).