FHSA Calculator

Project your First Home Savings Account: tax-free down payment growth, contribution limits, and the refunds the deduction gives back.

Tax-free down payment at purchase

Total contributed

Growth (tax-free)

Total refunds

The double-advantage

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Year-by-year growth

Quick Answer

Contributing the maximum $8,000 per year for 5 years at a 4.5% return builds roughly $43,800 of completely tax-free down payment — $40,000 contributed plus ~$3,800 of growth — and at a 30% marginal rate you'd also collect about $12,000 in tax refunds along the way. No other Canadian account is deductible going in and tax-free coming out.

Why the FHSA beats everything for first homes

The First Home Savings Account (launched April 2023) combines the two best features in Canadian tax law: an RRSP-style deduction on contributions and a TFSA-style tax-free withdrawal for a qualifying first-home purchase. A dollar saved in a taxable account is taxed twice (income tax first, tax on growth after); a dollar in an FHSA is taxed zero times.

The rules that matter

$8,000/year, $40,000 lifetime — contributions above the cap are penalized 1% per month until removed.
Carry-forward: up to $8,000 of unused room carries to next year — but only once the account is open. Open one with $1 now even if you can't fund it yet; it starts your room accumulating.
15-year clock: the account must be used or closed by the end of the 15th year after opening (or age 71).
Eligibility: you must not have lived in a home owned by you or your spouse in the current or previous four calendar years.
Didn't buy? Transfer to your RRSP tax-free — no room consumed, no tax, no penalty. There is no bad outcome.

Stack it with the HBP

The FHSA doesn't replace the Home Buyers' Plan — it stacks. You can withdraw $60,000 from your RRSP under the HBP and your full FHSA for the same purchase (HBP must be repaid over 15 years; FHSA never). A couple using both tools maximally can assemble well over $240,000 of tax-advantaged down payment before growth.

What to hold inside it

Match the investment to the timeline: under 3 years, HISAs and GICs (rates are known, principal is safe); 3–7 years, a conservative balanced fund; longer, diversified equities. The compound interest calculator shows how much the return assumption matters, and the RRSP vs TFSA calculator covers what to do with savings beyond the FHSA cap.

Frequently Asked Questions

What are the FHSA contribution limits?

$8,000 per calendar year and $40,000 lifetime. You can carry forward up to $8,000 of unused room to the next year — but only after you've opened the account, and only one year's worth at a time (so a maximum of $16,000 in one year). The account can stay open for 15 years or until you turn 71, whichever comes first.

Is the FHSA really tax-free in AND out?

Yes — it's the only account in Canada that works both ways. Contributions are deductible from your taxable income (like an RRSP), growth is tax-sheltered, and qualifying withdrawals to buy a first home are completely tax-free (like a TFSA). Non-qualifying withdrawals are taxed as income, same as an RRSP.

What if I don't end up buying a home?

You can transfer the entire FHSA balance to your RRSP or RRIF tax-free, with no impact on your RRSP contribution room — nothing is lost. A direct cash withdrawal instead would be fully taxable as income in that year, so the transfer is almost always the right move.

Can I combine the FHSA with the Home Buyers' Plan?

Yes — since 2023 you can use both for the same home. A couple maxing both tools could put roughly $240,000+ of tax-advantaged money toward one purchase ($80,000 FHSA + $120,000 HBP combined, before growth). The HBP portion must be repaid over 15 years; the FHSA portion never has to be.

Who qualifies as a first-time home buyer for the FHSA?

You must be a Canadian resident aged 18–71 who has not lived in a home owned by you or your spouse/common-law partner in the current year or the previous four calendar years. If your spouse owns the home you live in, you're not eligible — even if you've never owned yourself.

Guides that use this calculator

Saving & Investing Basics

FHSA vs TFSA for a Down Payment: Which One Wins? (It's Not Close)

Taxes & Registered Accounts

The FHSA: Canada's Only Double Tax-Free Account (And How to Milk It)

Taxes & Registered Accounts

FHSA Year-End Strategy: The Deadline Most First-Time Buyers Miss

Mortgage & Home Buying

Home Buyers' Plan Repayment Rules: The $60,000 RRSP Loan You Can't Forget

Mortgage & Home Buying

Every First-Time Home Buyer Program in Canada, Stacked (2026 Edition)

Official sources

Rules and dollar limits change. Confirm current amounts with the official pages below before you act.

First Home Savings Account (FHSA) (Canada Revenue Agency)

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