The First Home Savings Account (FHSA) helps first-time Canadian home buyers save up to $40,000 tax-free for a down payment. Contributions are tax-deductible, with an $8,000 annual limit and carry-forward allowed. Withdrawals for qualifying home purchases are tax-free, while non-qualifying withdrawals are taxed. Funds can be invested tax-free and transferred to RRSPs if unused. The FHSA complements the Home Buyers’ Plan but has lower contribution limits.