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

FHSA Calculator

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.

Why this account is the best deal
What you deposit→A deduction this year→Growth, sheltered→Tax-free for the house
The only Canadian account that gives you a deduction going in and a tax-free withdrawal coming out. $8,000 a year, $40,000 lifetime.

Your Homebuying Plan

A one-tap starting point. Adjust anything below. The FHSA caps at $8,000 a year and $40,000 for life.
$
%
The minimum is 5% of the first $500,000, 10% of the part above that, and 20% once the price reaches $1.5M, where insured mortgages stop. Putting 20% down avoids the CMHC premium.
5 years
years
$
Enter 0 if you haven't opened your account yet.
5.0%
%
For a 5-year horizon, 4 to 6% is reasonable (a mix of bonds and 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 room left (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

Watch Your Down Payment Grow

$0
FHSA at Purchase
$0
You Contribute
$0
Tax-Free Growth
The shaded band is tax-free growth. The dashed gold line is your down payment goal.

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.

Tools Dan uses

Open an FHSA

Your plan is only real once the account exists. Wealthsimple opens an FHSA in minutes with no minimum, so the down payment starts growing tax-free this month.

Open a Wealthsimple FHSA →

Affiliate link, no cost to you. How this works. See the full list of tools Dan recommends.

Print and keep

Your plan for the year before you buy

The numbers above tell you what the account can hold. These two pages are what to do with the twelve months in front of you, and the question most homebuying guides leave out. Print them and put them somewhere you will see them.

Part 3

12-Month Pre-Purchase Checklist

Work through this in sequence. Each phase builds on the last. Don't skip the early phases to get to the exciting ones. The groundwork is where deals are won or lost.

12 Months Out
  • Open FHSA (if not already; do this regardless of when you plan to buy)
  • Check your credit score. Free via Borrowell or Credit Karma. Minimum 680 for best rates; 720+ for best terms
  • Pull your credit report. Look for errors (common and correctable)
  • Emergency fund fully funded. Do not deplete this for your down payment
  • Consumer debt plan in place. Lenders look at TDS ratio (total debt service)
  • Initial pre-approval conversation with a mortgage broker (broker vs. bank: see note below)
  • Research neighbourhoods that fit your criteria and budget honestly
Broker vs. Bank: A mortgage broker shops your application to several lenders and is paid by whichever one funds it, so the service costs you nothing at closing. Brokers often beat the rate your own bank offers first. Get a broker referral from a trusted friend or your real estate agent. A random online lead form sells your details on.
6 Months Out
  • Formal mortgage pre-approval with your broker: get a rate hold (usually 90 to 120 days)
  • Write your homebuying list: must-have vs. nice-to-have. Be ruthlessly honest about what you actually need
  • Calculate true cost of homeownership: mortgage + property tax + utilities + maintenance (~1 to 2% of home value/year)
  • Research real estate agents: get referrals, check reviews, interview at least two
  • Start attending open houses, even if not ready to offer. Learn the market
  • Understand closing costs: land transfer tax (Ontario: 0.5 to 2.5%), legal fees (~$1,500 to $2,500), title insurance (~$300), home inspection (~$500)
3 Months Out
  • Real estate agent engaged: signed buyer representation agreement
  • Home inspector identified (get referrals, not a name from the listing agent)
  • Real estate lawyer identified: get a referral and confirm availability
  • Down payment sitting in safe, liquid accounts. With a purchase date fixed, a market drop has no time to recover
  • FHSA withdrawal process understood: contact your financial institution, review CRA Form RC725
  • Moving costs estimated and budgeted
  • Insurance quotes obtained: you need proof of home insurance before closing
Offer & Closing
  • Do not waive your financing condition. This protects you if the mortgage falls through
  • Do not waive your home inspection. In most situations this is not worth the risk saved
  • FHSA withdrawal form submitted to financial institution (allow processing time)
  • HBP withdrawal (CRA T1028) completed if using RRSP: confirm 90-day holding rule is met
  • Lawyer retainer paid; review Statement of Adjustments carefully
  • Cashable GIC or HISA confirmed: all funds accessible on closing date
  • Utilities transfer arranged for closing date
  • Final walkthrough completed before closing
Part 4

The Tithe Question

Most homebuying guides don't include this section. This one does. If you're a Christian saving aggressively for a house, this question will come up. Better to think through it now than mid-purchase.

The tension is real: a 20% down payment on a $600,000 home is $120,000. If you're earning $85,000 and saving $1,500/month, that's a 6.7-year runway, longer if prices rise. Meanwhile, 10% giving on $85,000 is $8,500/year. The math can make giving feel like the biggest obstacle to ownership.

It's worth thinking through your position before the pressure of a purchase timeline forces the decision for you.

Option 1: Maintain giving through the saving period

If your purchase is 4+ years away, this is almost always the right call. Your giving practice is more valuable than a marginally faster path to ownership. The discipline of continuing to give while building toward a big goal is formative. It shapes the kind of owner you'll become.

Option 2: Defined, temporary reduction with a written restoration date

If the purchase is 1 to 2 years away and you're in a genuinely tight margin season, a time-bounded, written reduction is honest and intentional. It beats an indefinite drift away from giving. Write the date. Hold to it. Tell someone.

Option 3: Pray about it

This isn't a cop-out. If your giving and your homebuying feel genuinely in tension, that tension deserves to be brought to God before it's resolved by circumstance. Some men hear something specific. Most find that clarity comes in the asking.

The house is not a financial sanctuary. It's a tool for your family and your community. Don't sacrifice generosity permanently to get there faster. You'll own the house, but you'll have lost something harder to rebuild.

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.