FHSA Calculator

What is a First Home Savings Account (FHSA)?

The FHSA (launched April 1, 2023) is a new registered account combining RRSP + TFSA benefits for first-time home buyers. Annual contribution limit: $8,000. Lifetime limit: $40,000. Contributions are tax-deductible (like RRSP). Qualifying home withdrawals are tax-free (like TFSA). If not used for a home purchase within 15 years, it must be transferred to RRSP (or taxed on withdrawal).

Who qualifies for an FHSA?

Eligibility: Canadian resident, age 18+, first-time home buyer (did not own a qualifying home in the current year or in any of the preceding 4 calendar years as a principal residence). Note: if you owned a home with a spouse previously, you may still qualify if you haven't in the past 4 years. The definition mirrors the RRSP Home Buyers' Plan rules.

Can I combine FHSA with the RRSP Home Buyers' Plan?

Yes — this is the recommended strategy for first-time buyers. FHSA: contribute up to $40,000 over several years, withdraw tax-free. RRSP Home Buyers' Plan: withdraw up to $35,000 (must be repaid over 15 years). Combined: $75,000 per person, $150,000 per couple — the most powerful first-home down payment strategy in Canada.

What happens to my FHSA if I don't buy a home?

If you haven't bought a qualifying home within 15 years (or by age 71), you must close the FHSA. You can transfer the full balance to your RRSP tax-free (without affecting your RRSP room). Alternatively, you can withdraw the funds but pay income tax on the full amount (as if it were an RRSP withdrawal). The FHSA is not lost — it converts to RRSP funds.