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FHSA Calculator

First Home Savings Account (FHSA) combines RRSP's tax deduction with TFSA's tax-free withdrawals. Compare all three strategies to find the optimal way to save for your down payment.

tl;dr

For most first-time buyers, the FHSA is the place to start. Contributions are tax-deductible like an RRSP, and a qualifying withdrawal for your first home is tax-free like a TFSA, with nothing to pay back. The RRSP Home Buyers' Plan also lets you withdraw tax-free, but the money has to be repaid to your RRSP. A TFSA gives no deduction at all. You can use the FHSA and the HBP together, and this calculator compares all three for your situation.

Best Strategy

FHSA

$52K

FHSA Total

$52K

No repayment

RRSP+HBP Total

$60K

$4K/yr repay

Tax Refunds

$12K

FHSA deductions

Account Growth Comparison

$10,000/year • 6% return • 5 years

Tip: Rotate your phone to landscape for a better chart view
FHSA Final
$51,788
RRSP+HBP Final
$60,000
TFSA Final
$63,062
FHSA
Best
Contributed$45,000
Tax Refunds$12,000
Growth$6,788
Down Payment$51,788
Tax-free withdrawal, no repayment
RRSP + HBP
Contributed$76,429
Tax Refunds$21,429
Growth$10,792
Down Payment$60,000
Must repay $4,000/yr × 15 yrs
TFSA
Contributed$55,000
Tax Refunds$0
Growth$8,062
Down Payment$63,062
Tax-free, but no deduction

Savings Plan

$

Your after-tax amount to save

$
5 years
6%

Tax Situation

28
30%

Quick Tips

  • • FHSA: $8,000/yr, $40,000 lifetime
  • • HBP: Up to $60,000, must repay over 15 years
  • • TFSA: Flexible but no tax deduction
  • • Max out FHSA first for most buyers

Key Considerations

•FHSA: Tax-deductible in, tax-free out, no repayment
•HBP: Tax-deductible, but must repay to RRSP over 15 years
•TFSA: Flexible, tax-free growth, but no upfront deduction
•You can combine strategies: FHSA + HBP + TFSA
Note: This calculator assumes you reinvest tax refunds. Actual results depend on your specific tax situation.

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Why the FHSA Comes First

The FHSA is the only account that gives you a tax deduction going in and tax-free money coming out for a first home. The RRSP's Home Buyers' Plan has to be repaid, and the TFSA gives no deduction. For most first-time buyers, filling the FHSA first — and adding the HBP or TFSA only if needed — means a bigger down payment for the same after-tax cost.

How the FHSA Works vs RRSP+HBP vs TFSA

1
FHSA Contribution Limits
You can contribute up to $8,000 per year to your FHSA, with a lifetime maximum of $40,000. Unused contribution room carries forward (up to $8,000 per year). Each spouse can have their own FHSA.
Annual Limit: $8,000 | Lifetime Limit: $40,000 | Carryforward: $8,000 max/year
2
FHSA Tax Treatment
FHSA contributions are tax-deductible (like RRSP), giving you an immediate tax refund. The account grows tax-free. Qualifying withdrawals for your first home are completely tax-free (like TFSA). This is the 'best of both worlds'!
Tax Refund = Contribution × Marginal Tax Rate | Withdrawal Tax = $0
3
HBP Comparison
Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP per person, tax-free. BUT you must repay it over 15 years. Missed repayments are added to your taxable income.
HBP Limit: $60,000/person | Annual Repayment: Withdrawal ÷ 15 years
4
TFSA Comparison
TFSA contributions are made with AFTER-TAX dollars (no tax deduction). Growth and withdrawals are tax-free. No repayment required. Generally inferior for home buying because you miss the tax deduction.
TFSA: No Tax Deduction | Growth & Withdrawal: Tax-Free
5
The Critical Difference: After-Tax vs Pre-Tax
This is KEY! If you have $10,000 after-tax to invest: TFSA gets $10,000. FHSA/RRSP at a 40% tax rate = $10,000 ÷ (1 - 0.4) = $16,667 contributed because you get a $6,667 refund. Same after-tax cost, 67% more invested!
RRSP/FHSA Equivalent = After-Tax Amount ÷ (1 - Tax Rate)
6
FHSA Participation Window
You can keep your FHSA open for up to 15 years OR until you turn 71, whichever comes first. If you don't buy a home, you can transfer the funds to your RRSP tax-free (doesn't use RRSP contribution room).
Max Duration: 15 years OR until age 71
7
Eligibility: First-Time Homebuyer Rule
Both FHSA and HBP require you to be a first-time homebuyer: you (and your spouse) must not have owned and lived in a home during the past 4 years plus the current year.
Eligible if: (Today - Last Home Ownership) > 4 years
8
HBP Opportunity Cost
The 15-year repayment means your RRSP grows slower. We calculate this by comparing RRSP value at retirement WITH repayment vs WITHOUT HBP withdrawal.
Opportunity Cost = RRSP Without HBP at Retirement - RRSP With HBP at Retirement
9
Long-Term Retirement Impact
For FHSA and TFSA strategies, if you don't use the funds for a home, they can stay invested for retirement. FHSA can transfer to RRSP tax-free. We project account value at retirement age to show true lifetime benefit.
Future Value = Present Value × (1 + Return)^Years

Calculation Notes

• FHSA maximum annual contribution: $8,000 per person
• FHSA lifetime maximum: $40,000 per person
• FHSA carryforward: Unused room carries forward, max $8,000/year added
• HBP maximum withdrawal: $60,000 per person
• HBP repayment: 15 years, minimum 1/15 per year (grace period varies)
• TFSA contributions: AFTER-TAX dollars (no deduction, no refund)
• RRSP/FHSA contributions: PRE-TAX equivalent (get refund, can contribute more)
• FHSA + HBP can be combined: Use both for maximum down payment power
• FHSA unused funds: Transfer to RRSP tax-free if home not purchased
• Best strategy for most: Max out the FHSA first, then consider HBP if you need more
• FHSA must be used within 15 years of opening or by age 71
• Tax rates matter: Higher current rate = bigger FHSA/RRSP benefit

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Common Questions

Who can open an FHSA?

An adult Canadian resident who is a first-time home buyer: you haven't lived in a home that you or your spouse owned at any time this year or in the previous 4 calendar years.

How much can I contribute to an FHSA?

$8,000 a year, up to $40,000 over your lifetime. Unused room carries forward, but no more than $8,000 of it into any one year.

What happens if I don't buy a home?

You can transfer the FHSA to your RRSP or RRIF tax-free without using RRSP room, or withdraw it as taxable income. The account has to close within 15 years of opening, or by the end of the year you turn 71, whichever comes first.

Can I use the FHSA and the Home Buyers' Plan together?

Yes. For the same home purchase you can make a qualifying FHSA withdrawal and an HBP withdrawal. Using both gives the biggest down payment.

Is the FHSA better than a TFSA for a down payment?

Usually. Both let you take money out tax-free for a home, but FHSA contributions are also deductible, so you get a refund the TFSA doesn't give. The TFSA is more flexible if you might not buy.

Do I have to claim the FHSA deduction in the year I contribute?

No. Like an RRSP deduction, you can carry it forward and claim it in a later year when your income, and your tax rate, is higher.

Next Steps

  • ✓Open an FHSA as soon as you're eligible — contribution room only starts building once the account exists.
  • ✓Contribute up to $8,000 a year, and carry unused room forward if you can't.
  • ✓Hold the deduction for a later year if your income, and your tax rate, is about to rise.
  • ✓If you need more for the down payment, add the Home Buyers' Plan on top.
  • ✓If your plans change, transfer the FHSA to your RRSP tax-free instead of withdrawing it.