Last updated: 2026 assumptions reviewed. Assumptions & sources
Tools & Resources

FHSA Savings Planner

The First Home Savings Account is the best deal in Canadian tax law for first-time buyers. Plan your contributions, see the tax savings, and find out when you can buy.

Your Homebuying Plan

$
%
Minimum is 5% (CMHC insured) for homes under $500K, 10% for $500K–$999K. 20% avoids CMHC insurance entirely.
years
$
Enter 0 if you haven't opened your account yet.
%
For a 5-year horizon, 4–6% is reasonable (mix of bonds/equities). Use lower rates for conservative portfolios.
$
Used to estimate the value of your FHSA tax deduction.

Your FHSA Plan

Down payment target $0
FHSA maximum (lifetime $40,000) $0
Additional savings needed (TFSA/savings) $0
FHSA annual contribution needed $0
Monthly FHSA contribution $0
Estimated FHSA balance at purchase $0
Growth earned (tax-free) $0
Estimated tax refund from FHSA contributions $0

Year-by-Year FHSA Balance

Year Annual Contribution Cumulative Contributed Balance (with growth) Tax Refund Earned

FHSA Rules (2026)

Annual limit
$8,000 per year
Lifetime limit
$40,000 total
Carry-forward
Up to $8,000 of unused annual room carries forward once. So if you contribute nothing in year 1, you can contribute $16,000 in year 2.
Tax treatment
Contributions are tax-deductible (like RRSP). Growth is tax-free. Qualifying withdrawals for your first home are tax-free. It's the best of both accounts.
Eligibility
Must be a first-time homebuyer, Canadian resident, age 18+. You and your spouse can each open an FHSA.
Combine with HBP
You can also use the Home Buyers' Plan (up to $60,000 RRSP withdrawal) alongside your FHSA. Combined max: $100,000 per person.

Open the account now

FHSA room only accumulates from the year the account is opened. If you plan to buy in 5 years and haven't opened your FHSA yet, open it today, even with $1. You're leaving room on the table every year it's not open.

CMHC Insurance Thresholds

Less than 20% down: CMHC insurance required. Standard premiums run from 2.8% to 4.0% for 80-95% loan-to-value purchases, added to mortgage principal. 20%+ down: no CMHC. On a $600K home, CMHC at 10% down adds about $16,740 to your mortgage - a significant ongoing cost worth planning around.

Frequently Asked Questions

What is the First Home Savings Account (FHSA)?

The FHSA is a Canadian registered account introduced in 2023 that combines RRSP and TFSA advantages for first-time homebuyers. Contributions are tax-deductible (like an RRSP), and qualified withdrawals for a first home purchase are tax-free (like a TFSA). The annual contribution limit is $8,000 and the lifetime limit is $40,000.

Who qualifies to open an FHSA?

You must be a Canadian resident, at least 18 years old, and a first-time home buyer (meaning you have not lived in a qualifying home that you or your spouse owned in the current year or the preceding four calendar years). You can open an FHSA even if you are not sure you will buy a home.

What is the difference between the FHSA and the RRSP Home Buyers' Plan?

With the FHSA, you contribute and the withdrawal is completely tax-free for a home purchase (no repayment required). With the RRSP Home Buyers' Plan (HBP), you borrow from your RRSP but must repay it over 15 years or it becomes taxable income. The FHSA is generally the better first choice for first-time homebuyers because there is no repayment obligation.

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

After 15 years (or at age 71), any unused FHSA funds can be transferred to your RRSP or RRIF without affecting your RRSP contribution room. This makes the FHSA essentially a no-downside account: if you buy a home, the withdrawal is tax-free; if you don't, the money rolls into retirement savings.

Can I use both the FHSA and the RRSP Home Buyers' Plan for the same purchase?

Yes. You can combine a tax-free FHSA withdrawal with an RRSP HBP withdrawal for the same first home purchase. This can significantly increase your down payment from registered accounts. The FHSA withdrawal is tax-free; the HBP withdrawal must be repaid within 15 years.