Project your First Home Savings Account balance, the lifetime tax you'll save from the deduction, and how much tax-free growth comes home with you. Adjusts to Canadian rules in real time.
Key takeaway
The FHSA is Canada's most tax-efficient way to save for a first home: contributions reduce your taxable income (like an RRSP), the account grows tax-free (like a TFSA), and qualifying withdrawals are tax-free with no repayment (unlike the HBP). Annual cap is $8,000, lifetime cap is $40,000, and you have up to 15 years to use it.
The FHSA is the best account the federal government has built for first-time buyers in a long time, and most Canadians I talk to either haven't opened one or don't fully understand what it does. It combines the two things that matter most: a tax deduction when you put money in (like an RRSP) and a tax-free withdrawal when you take it out for a qualifying home purchase (like a TFSA). At a 43% Ontario bracket, an $8,000 contribution effectively costs you about $4,560 after tax, and grows tax-free until you pull it out for the house.
You qualify if you're 18 or older (19 in some provinces), a Canadian resident, and you haven't lived in a home you owned this year or in the four preceding calendar years. That four-year look-back is the part people miss. Owning a place a long time ago doesn't necessarily disqualify you. The account stays open for up to 15 years or until age 71, whichever comes first. If you don't end up buying, the balance rolls into your RRSP tax-free without using new RRSP room, so there's no real downside to opening one even if you're undecided.
$8,000 a year, $40,000 lifetime. Those are the caps. Unused room carries forward by one year, which means if you don't contribute this year, you can put $16,000 in next year and still claim the deduction on the full amount. Two details most people miss: you can carry the deduction itself forward to a higher-income year (open the account at 22 earning $60k, claim the deduction at 28 earning $150k, your effective tax saving roughly doubles), and unlike the Home Buyers' Plan there's no repayment requirement once you withdraw.
Rules current as of 2026 per Canada Revenue Agency guidance. Edge cases (joint purchases, withdrawal mechanics, transfers between FHSA institutions) have specific rules. Talk to a planner before a big purchase.
What you've already contributed (lifetime cap is $40,000).
Max $8,000/year. Carry-forward not yet modelled.
FHSA must close by year 15 or be rolled to your RRSP.
Long-run pre-fee return assumption. Not a guarantee.
Sets the combined federal+provincial tax rate.
Used to look up your marginal tax bracket.
Illustrative only. Not financial, tax, or investment advice. Returns are assumed, not guaranteed; tax rules and rates current as of 2026.
The numbers above assume a steady contribution and a flat return. Your real plan will combine the FHSA with your RRSP, TFSA, employer match, and any equity comp. Sam will reach out with a quick 30-minute look at how the FHSA fits into your bigger plan.
Sam will see your FHSA inputs + projection before reaching out. Want to pick a time directly?
Pick a time to chatYou qualify if you're a Canadian resident, at least 18 years old (19 in some provinces), and you (or your spouse/common-law partner) didn't own a home you lived in this year or in the previous four calendar years. You can hold an FHSA for up to 15 years.
Up to $8,000 in a calendar year, with unused room carrying forward (one year of carry-forward at a time). The lifetime contribution limit is $40,000. Contributions are tax-deductible against your income that year, similar to an RRSP.
The FHSA usually wins for new first-time buyers because withdrawals for a qualifying home are tax-free and don't have to be repaid, while HBP withdrawals must be repaid over 15 years. The two can also be combined: you can use both for the same purchase. The HBP still helps when you've already maxed out the FHSA or need a larger sum.
You have 15 years from opening, or until age 71, to use it for a qualifying first home. If you don't, you can transfer the balance tax-free to your RRSP or RRIF (it doesn't use new RRSP room). Otherwise, withdrawals are taxed as income in the year you take them.
Yes. They're separate accounts with separate contribution rooms. Many first-time buyers contribute to both: FHSA for the tax deduction now plus tax-free withdrawal for the home, TFSA for everything else (or as backup if the FHSA isn't used).