Canadian first-home planning

How far can your FHSA take you?

Project your tax-advantaged down-payment savings with the official $8,000 annual and $40,000 lifetime contribution limits built in.

Your estimate

Enter a steady yearly contribution and your planning assumptions.

$
Maximum $8,000 per year; this calculator assumes no prior carry-forward.

%
Before fees. Investment returns are not guaranteed.

years
An FHSA has a maximum participation period.

%
Use your estimated combined federal and provincial marginal rate.

At purchase time

After 5 years, assuming contributions at the start of each year.

Projected FHSA value $46,415
$40,000 contributed + $6,415 estimated investment growth
Total tax deductions claimed $40,000
Estimated tax savings $12,000
Unused room carried forward $0
Balance composition14% growth
Contributions Estimated growth

The $40,000 lifetime contribution limit is reached in year 5. Additional years would grow the balance, but no further contributions are added.

Built-in guardrails: the estimate never contributes more than $8,000 in a year or $40,000 over the account’s lifetime.

Official limits applied

How this estimate works

A transparent, planning-level calculation—not a tax return.

01

Contribute

Your entered amount is added at the beginning of each year, subject to the annual and lifetime limits.

02

Compound

Each annual contribution and the existing balance grow at your expected return through the end of that year.

03

Estimate tax savings

Eligible contributions are multiplied by your marginal tax rate. Actual savings depend on your income and tax situation.

FHSA vs. the RRSP Home Buyers’ Plan

Both can help fund the same qualifying home, but they treat withdrawals differently.

Feature
FHSA
RRSP Home Buyers’ Plan
Contributions
Generally tax-deductible
RRSP contributions may be deductible
Withdrawal for a qualifying home
Tax-free
Not included in income when HBP conditions are met
Repayment
No repayment required
Generally repaid to the RRSP over 15 years
Current withdrawal limit
No separate withdrawal ceiling beyond the account balance
Up to $60,000
Can be combined?
Yes
Yes, if all conditions for each program are met

Who can open an FHSA?

The account is designed for adult Canadian residents who meet the first-time home buyer test when opening it.

  • Resident of Canada when the account is opened.
  • Old enough to enter the account contract and no older than 71. The federal minimum is 18, but it may be 19 where that is the legal age to enter a contract. You must be 71 or younger on December 31 of the year you open the account. If you open an FHSA in the year you turn 71, your maximum participation period still ends that December 31.
  • A first-time home buyer for FHSA opening purposes: generally, you did not live in a home you or your spouse/common-law partner owned as your principal residence in the current year before opening or the previous four calendar years.
  • Open the account to start room: FHSA participation room does not begin accumulating before your first account is opened.

What counts as a qualifying withdrawal?

The CRA applies a separate first-time buyer test at withdrawal.

You must be a Canadian resident through the period from your first qualifying withdrawal until you acquire the home, have a written agreement to buy or build a qualifying home in Canada before October 1 of the following year, and intend to occupy it as your principal residence within one year. You generally cannot have owned and lived in a principal residence in the relevant lookback period, except for the 30 days immediately before the withdrawal.

Complete CRA Form RC725 for each qualifying withdrawal. Qualifying withdrawals, including investment growth, are not taxable.

What if you don’t buy a home?

Your savings do not have to be withdrawn as taxable cash.

A direct RRSP or RRIF transfer is the usual off-ramp

You can generally transfer FHSA property directly to your own RRSP or RRIF without immediate tax consequences and without using RRSP deduction room, provided you do not have an excess FHSA amount.

An FHSA’s maximum participation period ends on December 31 of the year in which the earliest of these occurs: the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal. A cash withdrawal that is not qualifying is generally taxable.

Frequently asked questions

How much unused FHSA room can I carry forward?

You can carry forward up to $8,000 of unused FHSA participation room to the following year. That can create as much as $16,000 of participation room in a later year, subject to the $40,000 lifetime contribution limit. Room starts only after you open your first FHSA.

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

No. Eligible contributions that you do not deduct in the contribution year can generally be deducted in a future year. This is separate from carrying forward unused participation room.

Can I use an FHSA and the Home Buyers’ Plan for the same home?

Yes. The CRA says you can make a qualifying FHSA withdrawal and an RRSP Home Buyers’ Plan withdrawal for the same qualifying home, as long as you meet every condition for each program.

Are RRSP-to-FHSA transfers tax-deductible?

No. A direct RRSP-to-FHSA transfer may occur without immediate tax consequences, but it is not a new deductible FHSA contribution and it uses available FHSA participation room.

Why might my actual tax savings differ?

This calculator multiplies eligible contributions by one marginal tax rate. Your real result can differ because income, province or territory, other deductions and credits, the year you claim the deduction, and tax-bracket changes all matter.

Official sources

Rules reviewed October 4, 2026. Always confirm your current participation room on your CRA notice of assessment or in CRA My Account.