FHSA: The First Home Savings Account
Compare the ultimate 2026 home-buying trio and see how the FHSA accelerates your down payment.
Last updated: April 2026
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
- 1Check Income — A higher income means a larger tax refund from your FHSA contribution.
- 2Plan Contributions — You can put in up to $8,000 per year, up to a lifetime max of $40,000.
- 3Compare to RRSP — See why the FHSA's no-repayment rule makes it better than the RRSP Home Buyers' Plan.
Formula & example
FHSA Benefit = (Tax Refund) + (Tax-Free Investment Growth)
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
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!
Use cases
Active Home Hunters
Maximize your FHSA first before using RRSP or TFSA for your down payment.
Young Savers
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
Can I use both FHSA and RRSP HBP?+
Yes! Since 2023, you can combine your FHSA withdrawals with an RRSP Home Buyers' Plan withdrawal to buy the same house.
Does the room accumulate if I don't open an account?+
No. Unlike TFSA, you MUST open the account before the $8,000 annual room starts to accrue.