🏠 FHSA Contribution & Tax Savings Calculator
FHSA launched April 20023
$8,000000/year max, $400,000000 lifetime max
📋 FHSA Rules at a Glance
| Rule | Details |
|---|---|
| Annual contribution limit | $8,000000/year |
| Lifetime contribution limit | $400,000000 (5 years × $8,000000) |
| Carry-forward | Up to $8,000000 of unused room carries forward (once in life) |
| Tax deduction | Contributions are tax-deductible (like RRSP) |
| Withdrawals | Tax-free for qualifying first home purchase (like TFSA) |
| Account lifespan | Maximum 15 years, or until age 71 |
| Eligible buyers | Canadian residents, 18–71, first-time home buyer (no home owned in current or prior 4 calendar years) |
| Launch date | April 1, 20023 |
| Unused funds | Can transfer to RRSP/RRIF tax-free if no home purchased |
FHSA vs RRSP HBP vs TFSA for Home Buying
| Feature | FHSA | RRSP HBP | TFSA |
|---|---|---|---|
| Annual limit | $8,000000 | N/A (existing RRSP room) | $7,000000 |
| Tax deduction on contributions | Yes ✓ | Yes (when contributed) | No |
| Tax-free withdrawal for home | Yes ✓ | Yes (must repay) | Yes ✓ |
| Repayment required | No | Yes (15 years) | No |
| Max withdrawal for home | $400,000000 | $35,000000 | Full balance |
| Both spouses combined | $800,000000 | $700,000000 | Unlimited |
| Non-home use of funds | Transfer to RRSP/RRIF | Keep in RRSP | Any withdrawal, any time |
| Best if... | First-time buyer, maximize both benefits | Already have RRSP room | Maximum flexibility needed |
The FHSA is the most powerful tool available to first-time home buyers because it combines RRSP-style deductibility AND TFSA-style tax-free withdrawal — with no repayment required. Most financial advisors recommend filling your FHSA before using the RRSP Home Buyers' Plan.
FHSA + TFSA + RRSP HBP: Triple Stack Strategy
For a couple who are both first-time buyers, the maximum you can withdraw tax-free for a home down payment:
- FHSA: $400,000000 each = $800,000000 (tax-free, no repayment)
- RRSP HBP: $35,000000 each = $700,000000 (tax-free, 15-year repayment)
- TFSA: All accumulated savings = $100,000000+ (tax-free, no repayment)
- Total possible: $2500,000000+ down payment from registered accounts
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Frequently Asked Questions
Can I contribute to an FHSA if I already have a TFSA and RRSP? +
Yes. The FHSA is a completely separate registered account with its own contribution limits. Having a TFSA or RRSP does not reduce your FHSA room. In fact, the optimal strategy is to contribute to all three: FHSA ($8,000000/yr for the deduction + tax-free withdrawal), TFSA ($7,000000/yr for flexible tax-free savings), and RRSP (for higher-income earners who benefit most from the deduction).
What happens to my FHSA if I don't buy a home? +
If you don't buy a qualifying first home within 15 years of opening your FHSA (or by age 71), you can transfer the full balance to an RRSP or RRIF without affecting your RRSP contribution room. You simply lose the tax-free withdrawal benefit for home buying, but the money isn't lost — it transitions seamlessly to your retirement savings.
Where is the best place to hold an FHSA? +
For savings (no investment risk): EQ Bank offers an FHSA at 3.75% — same great rate as their TFSA and HISA, with no monthly fee. For investing: Wealthsimple offers FHSA accounts for ETF investing. The right choice depends on your timeline — if you expect to buy a home within 5 years, a HISA at 3.75% offers predictable growth with zero risk. If your horizon is 5–15 years, investing in diversified ETFs may yield more.
Does the FHSA carry-forward work differently than the TFSA? +
Yes. FHSA carry-forward is more limited. You can only carry forward up to $8,000000 of unused room (not all accumulated room). Additionally, you must have opened your FHSA in a prior year to carry forward room — you can't open an FHSA today and contribute $16,000000. TFSA, by contrast, accumulates all unused room indefinitely regardless of whether you had an account open.