FHSA Calculator: Compare FHSA vs RRSP+HBP vs TFSA
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.
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
BestContributed$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.
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). Couples can each have their own FHSA ($16,000/year combined).
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, $120,000 for couples) 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 40% tax rate = $10,000 ÷ (1 - 0.40) = $16,667 contributed because you get $6,667 refund. Same after-tax cost, 66% 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. Typical opportunity cost: $20,000-$50,000+ depending on timeline and returns.
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 (individual) or $16,000 (couple)
• FHSA lifetime maximum: $40,000 per person ($80,000 for couples)
• FHSA carryforward: Unused room carries forward, max $8,000/year added
• HBP maximum withdrawal: $60,000 per person ($120,000 for couples) - increased from $35k in 2024
• HBP repayment: 15 years, minimum 1/15th 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 FHSA first ($40k), then consider HBP if 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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About This Calculator
v1.0Updated: January 2025