How to use the FHSA calculator
- 1 Enter your yearly contribution, up to $8,000.
- 2 Enter the years until you buy.
- 3 Enter an expected return.
- 4 Enter your income and province to see the refund.
Worked example
Saving $8,000 a year for 5 years at 5% with a $75,000 income in Ontario. You reach the $40,000 lifetime limit and the account grows to about $46,415, all tax-free for your home. Each contribution also gives about $2,522 back in tax.
FHSA rules
- Eligibility: you must be 18 or older, a Canadian resident and a first-time buyer, meaning you have not lived in a home you or your spouse owned in the current year or the previous four.
- Carry forward: unused room of up to $8,000 carries to the next year, so you can contribute up to $16,000 in a year.
- Time limit: the account can stay open for 15 years or until you turn 71.
- Not buying? Transfer the money to an RRSP tax-free without using RRSP room.
Combine with the Home Buyers' Plan using the RRSP Calculator, then budget the purchase with the Mortgage Affordability Calculator.
Features
Limits built in
$8,000 a year and $40,000 lifetime.
Tax refund
Contributions are deductible, like an RRSP.
Tax-free withdrawal
Qualifying withdrawals for a first home are not taxed.
When to use it
First-time buyers
Plan a down payment. Add the Home Buyers' Plan with the RRSP Calculator.
Couples
Each partner can open an FHSA and save $40,000. See your budget with the Mortgage Affordability Calculator.
FHSA plus RRSP
Combine with the Home Buyers' Plan. Check rebates with the Land Transfer Tax Calculator.
Timing
See how long to reach the lifetime limit. Compare with the TFSA Room Calculator.
Related Savings and Investing tasks
Frequently asked questions
What is an FHSA?
A registered account for first-time home buyers. Contributions are tax-deductible and qualifying withdrawals to buy a first home are tax-free.
How much can I contribute?
$8,000 a year, up to $40,000 in your lifetime. Unused room of up to $8,000 can be carried forward to the next year.
Who can open one?
Canadian residents aged 18 or older who have not lived in a home they owned in the current year or the previous four years.
How long can it stay open?
Up to 15 years, or until the end of the year you turn 71, whichever comes first.
What if I do not buy a home?
You can transfer the money to an RRSP tax-free without using RRSP room, or withdraw it as taxable income.
Can I use the FHSA and HBP together?
Yes. You can use both for the same home.
Does growth count toward the limit?
No. Only contributions count, so investment growth can take the balance above $40,000.
What can I invest in?
Cash, GICs, ETFs, mutual funds and stocks, the same as an RRSP or TFSA.
Do withdrawals have to be repaid?
No. Unlike the Home Buyers' Plan, qualifying FHSA withdrawals never need to be repaid.
Does the refund count?
Yes. Investing your tax refund, for example in a TFSA, helps you build the down payment faster.
Can I have an FHSA and a TFSA?
Yes. You can hold both, and many buyers use the FHSA first because of the tax deduction, then the TFSA for extra savings.
What counts as a first-time buyer?
Someone who did not live in a home they or their spouse owned at any time in the current year or the previous four calendar years.
When must I buy?
You must buy or build a qualifying home before 1 October of the year after the withdrawal, and live in it within a year.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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