Calculate your First Home Savings Account contribution room, tax refund, and projected savings toward your first home.
Estimate your FHSA growth and tax savings on the path to homeownership
The First Home Savings Account combines the best of RRSP and TFSA.
Available at banks, credit unions, and online brokers. Must be a first-time home buyer and 18–71.
$8,000 annual limit, $40,000 lifetime. Unused room carries forward 1 year (max $16,000 in year 2).
Contributions reduce your taxable income, like an RRSP. Get a refund at tax time.
All investment returns inside the FHSA are completely tax-free, like a TFSA.
When you buy your first qualifying home, all withdrawals are 100% tax-free.
| Rule | Details |
|---|---|
| Annual Contribution Limit | $8,000 |
| Lifetime Contribution Limit | $40,000 |
| Unused Room Carry-Forward | 1 year only (max $16,000 in year 2) |
| Eligible Age | 18–71 |
| First-Time Home Buyer | Must not have owned a home in the current or previous 4 years |
| Must Be Used Within | 15 years of opening or by age 71 |
| Tax on Contributions | Deductible (like RRSP) |
| Tax on Growth | Tax-free (like TFSA) |
| Tax on Qualifying Withdrawals | Tax-free (unlike RRSP) |
| If Not Used for Home | Transfer to RRSP/RRIF (no tax room used) or withdraw (taxed as income) |
| Feature | FHSA | RRSP Home Buyers' Plan | TFSA |
|---|---|---|---|
| Contribution Limit | $8K/yr ($40K lifetime) | Up to $35,000 (RRSP room) | $7K/yr (2026) |
| Tax Deduction | ✅ Yes | ✅ Yes | ❌ No |
| Tax-Free Growth | ✅ Yes | ❌ No | ✅ Yes |
| Tax-Free Withdrawal for Home | ✅ Yes | ❌ Must repay over 15 yrs | ✅ Yes |
| Repayment Required | ❌ Never | ✅ 15 years | ❌ Never |
| Eligible | First-time buyers only | First-time buyers only | Anyone |
| Can Be Combined | Yes — use with RRSP HBP | Yes — use with FHSA | Yes — use with FHSA |
💡 Power move: Combine FHSA + RRSP Home Buyers' Plan for a total of $75,000 ($40K FHSA + $35K RRSP) toward your down payment — both tax-free.
Open your FHSA account even if you're not ready to buy. The annual room accumulates as soon as you open it — so opening today at $8,000 means you can contribute up to $16,000 next year (carry-forward room). Every year you delay is $8,000 in tax-free room lost forever.
While saving for your home, keep your FHSA in a high-interest account. EQ Bank offers 3.75% on FHSA deposits — risk-free growth while you save.
Get $100 With KOHO →The FHSA annual limit is $8,000 per year, with a lifetime limit of $40,000. If you opened your FHSA in 2023 and contributed the maximum each year, you'd have $32,000 of contributions by end of 2026 (4 years × $8,000).
You qualify if you have not owned a qualifying home that you lived in as your principal place of residence at any time in the current calendar year or in the preceding four calendar years. You also must be a Canadian resident aged 18–71.
Yes. You can withdraw from both your FHSA (up to $40,000) and use the RRSP Home Buyers' Plan (up to $35,000) for the same qualifying home purchase. That's potentially $75,000 toward a down payment, both tax-free.
If you don't use your FHSA within 15 years of opening, or by age 71, you can transfer the balance to your RRSP or RRIF without using any RRSP contribution room — it's not wasted. You can also withdraw it as taxable income.
For guaranteed returns, EQ Bank's FHSA offers 3.75% with no risk. For higher long-term returns, a low-cost index ETF (like XEQT or VEQT) inside a self-directed FHSA can earn 6–8% historically, though with market risk.
As soon as possible — even if you don't plan to buy for years. Opening your FHSA starts the clock on your annual $8,000 room. Each year you delay is $8,000 in tax-free contribution room permanently lost. The $0 cost to open means there's no reason to wait.