FHSA: The First Home Savings Account
Compare the ultimate 2026 home-buying trio and see how the FHSA accelerates your down payment.
The Ultimate First Home Tool
The **FHSA (First Home Savings Account)** is the newest registered plan in Canada. It combines the best features of every other account to help you buy your first home faster.
The Duo Benefit: Contributions are tax-deductible (saving you income tax now), AND withdrawals are tax-free (like a TFSA) as long as they are used to buy a qualifying first home.
How to Use This Calculator
- Check Income - A higher income means a larger tax refund from your FHSA contribution.
- Plan Contributions - You can put in up to $8,000 per year, up to a lifetime max of $40,000.
- Compare to RRSP - See why the FHSA's no-repayment rule makes it better than the RRSP Home Buyers' Plan.
Calculation Formula & Example
The Formula
FHSA Benefit = (Tax Refund) + (Tax-Free Investment Growth)
Where:
- Annual Max = $8,000
- Lifetime Max = $40,000
Example Calculation
If you contribute $8,000 and earn $90,000, you'll get roughly $2,400 back in taxes. That means it only 'cost' you $5,600 to put $8,000 toward your home.
Benefits of Using This Calculator
- No Repayments - Unlike the RRSP Home Buyers' Plan, you don't have to 'pay back' the FHSA over 15 years.
- Carry Forward - You can carry forward up to $8,000 of unused room to the next year.
- Transfer to RRSP - If you don't buy a home, you can transfer your FHSA to an RRSP without using up any RRSP room!
Calculator Use Cases
Maximize your FHSA first before using RRSP or TFSA for your down payment.
Even if you aren't sure you'll buy, the 'free' RRSP room at the end is a huge reason to start early.
Frequently Asked Questions
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