How does the FHSA reduce my taxes?

FHSA contributions are tax-deductible like RRSP contributions. At a 31% marginal rate, an $8,000 contribution saves approximately $2,480 in taxes. You can defer claiming the deduction to a higher-income year.

Can I use both the FHSA and the RRSP Home Buyers Plan?

Yes. For the same qualifying purchase, you can use both: FHSA (up to $40,000 tax-free, no repayment) and HBP (up to $60,000 per person, repaid over 15 years). A couple can access up to $200,000 combined.

What happens to my FHSA if I never buy a home?

You can transfer the balance to your RRSP or RRIF without tax and without affecting your RRSP contribution room. Non-qualifying cash withdrawals are taxed as income.

Is there a 60-day rule for FHSA like the RRSP?

No. FHSA contributions must be made by December 31 to count for that tax year. Unlike RRSPs, contributions in January-February cannot be applied to the previous year's return.

Who is eligible to open an FHSA in Canada?

You must be a Canadian resident, at least 18, and a first-time home buyer (not lived in a home you or your spouse owned in the current year or preceding four calendar years).

FHSA Calculator Canada 2026 — First Home Savings Account Projections

Q: What is the FHSA contribution limit for 2026?

The FHSA annual contribution limit for 2026 is $8,000, with a lifetime maximum of $40,000. Unused room carries forward up to a maximum carry-forward of $8,000 (one year).

$8,000Annual Limit 2026

$40,000Lifetime Maximum

$60,000HBP Per Person

$200,000Couple Max (FHSA+HBP)

Province

Annual Income ($)

Year FHSA Was / Will Be Opened

Total Contributed to Date ($)

Planned Annual Contribution ($) max $8,000/yr

Expected Annual Return (%)

Target Year to Buy Home

Buying as a couple?

Include RRSP Home Buyers’ Plan (HBP)?

🏠 FHSA Projections

Years to Target Purchase

Projected FHSA Balance

Total Down Payment Power

Estimated Tax Saved

Estimated Marginal Rate

Annual Return Assumed

RRSP HBP Included

Contribution Room Available Now

⚠️ Projections are estimates. Contributions assumed at start of each year. Actual balances depend on contribution timing, investment performance, and carry-forward calculations. FHSA rules: $8,000/yr, $40,000 lifetime, Dec 31 contribution deadline. Couple mode assumes both partners are eligible first-time buyers with fully available FHSA room. Consult a financial advisor for personalized planning.

Why the FHSA Is Canada’s Best Home-Buying Tool

The First Home Savings Account uniquely combines tax-deductible contributions like an RRSP and tax-free withdrawals like a TFSA — but only for a qualifying first home purchase. No other Canadian account gives you both a deduction going in and tax-free growth and withdrawal coming out.

Unused contribution room carries forward by up to $8,000. Open your FHSA as early as possible — even with a $1 contribution — because carry-forward room accumulates from the year you open the account, not the year you start contributing meaningfully.

Combining FHSA with the RRSP Home Buyers’ Plan

For the same qualifying purchase you can use both. The HBP lets each person withdraw up to $60,000 from their RRSP (updated August 2024), repayable over 15 years. A couple using both programs can access up to $200,000 in registered savings for their down payment.

The December 31 Deadline

Unlike RRSPs, there is no 60-day grace period for FHSAs. Contributions made in January or February of 2027 count toward your 2027 tax year, not 2026. Set a reminder to contribute before year-end to claim the deduction on your 2026 return.

🔧 Other Tools You Might Need

🏡 Canadian Mortgage Calculator 🏠💰 Home Affordability Calculator 📈 RRSP / TFSA Calculator 🏦 Mortgage Stress Test 🏠 Land Transfer Tax

What is the FHSA — First Home Savings Account?

The First Home Savings Account (FHSA) is a registered account introduced by the federal government in 2023. It combines the best features of the RRSP and TFSA for first-time home buyers: contributions are tax-deductible (like an RRSP), and qualifying withdrawals for a first home purchase are completely tax-free (like a TFSA). Investment growth inside the account is also sheltered from tax.

FHSA Contribution Rules

You can contribute up to $8,000 per year, with a lifetime maximum of $40,000. Unused room carries forward one year — so if you contribute $5,000 in year one, you can contribute up to $11,000 in year two. The account can remain open for up to 15 years, or until the end of the year you turn 71, whichever is earlier.

Can I combine the FHSA with the RRSP Home Buyers' Plan?

Yes — and this is a powerful combination. The RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free for a qualifying home purchase. You can use both in the same transaction, effectively stacking $40,000 (FHSA lifetime max) + $60,000 (HBP) = up to $100,000 per person, or $200,000 per couple, as a tax-sheltered down payment source.

How to Use This Calculator

Enter the year you opened your FHSA, how much you've already contributed, your planned annual contribution, expected return rate, and target purchase year. The calculator projects your total balance, cumulative tax savings from deductions, and combined down payment power if you also use the RRSP HBP.