FHSA Calculator Canada 2025

First Home Savings Account • Tax deduction + tax-free growth + tax-free withdrawal • $40,000 lifetime limit

The First Home Savings Account (FHSA) is Canada's most powerful savings account for first-time home buyers. You get an upfront tax deduction like an RRSP, tax-free growth like a TFSA, and tax-free withdrawals for a qualifying home purchase — a triple tax advantage.

FHSA Rules for 2025

• Annual contribution limit: $8,000/year
• Lifetime limit: $40,000
• Carry-forward: Up to $8,000 of unused room can carry forward (one year only)
• Account lifespan: Maximum 15 years, or until December 31 of the year you turn 71
• Eligible withdrawals: Must be a first-time home buyer (no home owned in current year or prior 4 years)
• If you don't buy: Transfer to RRSP or RRIF without affecting RRSP room

FHSA vs RRSP Home Buyers' Plan

The FHSA is generally superior to the RRSP Home Buyers' Plan (HBP) for most first-time buyers:

• FHSA withdrawals are tax-free — no repayment required
• HBP requires you to repay $35,000 over 15 years back into your RRSP
• You can use both FHSA and HBP together for a maximum combined benefit