FHSA Calculator — First Home Savings Account 2026
The tax-free down payment you can build from $8,000-a-year FHSA contributions ($40,000 lifetime), the refunds at your province's marginal rate, tax-free growth, the RRSP Home Buyers' Plan on top, a couple's combined total and the home price it supports.
| Contributions over the period | — |
|---|---|
| Tax refunds from the deductions | — |
| Growth (tax-free) | — |
| FHSA balance at purchase | — |
| Net cost of building it | — |
| Plus RRSP Home Buyers\' Plan | — |
| Total down payment available | — |
| Same savings in a TFSA / taxable account | — |
| Lifetime limit check | — |
| Home this supports (10% down) | — |
In short
The First Home Savings Account lets a first-time buyer contribute $8,000 a year ($40,000 lifetime) with an RRSP-style deduction and TFSA-style tax-free withdrawal for a home; five years of maximum contributions at $85,000 of Ontario income produce about $11,900 of refunds and roughly $46,400 of tax-free down payment at 5% growth, combinable with the $60,000 RRSP Home Buyers' Plan and a partner's accounts.
Who this is for: First-time buyers (and couples) planning a down payment, and parents advising adult children on where to save first.
The FHSA: RRSP deduction going in, TFSA treatment coming out
The First Home Savings Account is the best deal in Canadian tax law for a first-time buyer: contributions of up to $8,000 a year ($40,000 lifetime) are deductible like an RRSP, growth is tax-free, and a qualifying withdrawal to buy a first home is tax-free like a TFSA. Unused annual room carries forward (one year's worth), so someone who opens an account and contributes nothing can put in $16,000 the following year.
- Who qualifies: residents aged 18–71 who have not lived in a home they (or a spouse) owned in the current year or the previous four calendar years.
- Stack it: combine with the RRSP Home Buyers' Plan ($60,000 per person, repaid over 15 years starting the fifth year) and a partner's accounts — a couple can assemble $200,000+ of tax-advantaged down payment.
- Open it now: room only starts accruing when the account is opened, so open one even with a small deposit.
- If plans change: after 15 years (or at 71) the balance transfers tax-free to an RRSP or RRIF without using RRSP room — so there is no downside to contributing.
- Timing the deduction: contribute in a low-income year and claim the deduction later when your marginal rate is higher.
See also: Canada Mortgage Affordability & Stress Test Calculator.
Assumptions
- Each year contributes min(entered, $16,000 annual cap, remaining $40,000 lifetime room); refund = tax at income − tax at income − contribution (2026 engine); balance compounds at the return entered.
- Couple doubles contributions, refunds, balance and the HBP; HBP capped at $60,000 per person.
- TFSA comparison grows the same contributions without the deduction; taxable-account comparison deducts tax on growth at 60% of the marginal rate.
Worked example
Contributions $40,000 (the lifetime limit) earn refunds of about $11,900 at a 29.65% marginal rate; growth adds about $6,400 → an FHSA balance of about $46,400 withdrawn tax-free, built from roughly $28,100 of after-tax money. Add the $30,000 Home Buyers' Plan withdrawal and the down payment is about $76,400 — enough for a $764,000 home at 10% down. A couple doing the same would have about $152,800.
Frequently asked questions
What is the FHSA contribution limit?
$8,000 a year and $40,000 lifetime per person; one year of unused room carries forward, so the most you can contribute in a single year is $16,000. Over-contributions are taxed at 1% a month.
Is the FHSA better than the Home Buyers' Plan?
Yes — FHSA withdrawals are never repaid, while HBP withdrawals must be repaid to the RRSP over 15 years; use the FHSA first and the HBP on top (both are allowed for the same purchase).
What happens to my FHSA if I don't buy a house?
You can transfer it to an RRSP or RRIF tax-free without affecting RRSP room, or withdraw it as taxable income; the account must close by the end of the year of its 15th anniversary or when you turn 71.
Can I carry forward the FHSA deduction?
Yes — like an RRSP, the deduction can be claimed in any later year, which is useful if your income will rise.
Can both spouses open an FHSA?
Yes, if each individually qualifies as a first-time buyer; the limits are per person, so a couple can contribute $80,000 lifetime, and each can also use the $60,000 HBP.
Does the FHSA count as RRSP room?
No — FHSA room is separate and does not reduce RRSP or TFSA room; you can transfer from an RRSP into an FHSA (no deduction, uses FHSA room).
Can I have an FHSA and an RRSP?
Yes — they are separate accounts with separate room; you can even transfer RRSP money into the FHSA (no new deduction) to use the tax-free withdrawal.
What is a qualifying home?
A housing unit in Canada you will occupy as your principal residence within a year of buying it, bought with a written agreement after the account is opened and before 1 October of the year after the withdrawal.
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