FHSA Calculator
Plan your down payment with a First Home Savings Account. Enter your yearly contribution, expected return and tax rate and see your balance each year, your tax savings and when you reach the limit.
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How much will my FHSA grow?
An FHSA filled with the maximum $8,000 a year reaches the $40,000 lifetime limit in five years and, at a 5% annual return, grows to about $46,400. At a 30% marginal tax rate the deductions also save about $12,000 in tax, and qualifying withdrawals for a first home are tax-free.
How the FHSA calculator works
The FHSA calculator models a First Home Savings Account from your first deposit to the $40,000 lifetime limit. It needs three inputs.
Annual contribution (max $8,000) is what you plan to deposit each year. Annual return is the growth you expect: around 3% for GICs or savings, more for a balanced portfolio with more ups and downs. Marginal tax rate is the rate on your last dollar of income, which sets the value of your deductions. The income tax calculator shows yours.
You get the value when you reach the lifetime limit, total tax deductions across the full $40,000 and the number of years it takes, plus a year-by-year table of contributions and balance. It assumes you deposit at the start of each year and that contributions stop at $40,000 while growth continues.
How much will my FHSA grow? Example balances
Growth depends on how fast you contribute and what the money earns. Maxing out at $8,000 a year fills the account in five years. Smaller deposits take longer but give each dollar more years to compound.
| Yearly contribution | Annual return | Years to $40,000 | Balance at that point |
|---|---|---|---|
| $8,000 | 3% | 5 | about $43,700 |
| $8,000 | 5% | 5 | about $46,400 |
| $8,000 | 7% | 5 | about $49,200 |
| $5,000 | 5% | 8 | about $50,100 |
| $4,000 | 5% | 10 | about $52,800 |
Couples can each open an FHSA, so two first-time buyers can shelter up to $80,000 of contributions between them, plus growth.
FHSA rules to know before you contribute
The First Home Savings Account launched in April 2023. It combines the deduction of an RRSP with the tax-free withdrawal of a TFSA, but only for buying a first home.
- Eligibility. You must be a Canadian resident, at least 18 and a first-time home buyer, meaning you have not lived in a home you or your spouse or common-law partner owned in the current year or the previous four calendar years.
- Room starts when you open. Unlike a TFSA, FHSA room only begins the year you open the account. Opening one early, even with a small deposit, starts the clock.
- Carry-forward. Up to $8,000 of unused room carries into the next year, so the most you can contribute in one year is $16,000.
- Calendar-year deadline. Contributions count for the calendar year they are made. There is no 60-day grace period like the RRSP's.
- Flexible deductions. You can deduct a contribution in a later year if your income, and tax rate, will be higher then.
- Time limit. The account can stay open for up to 15 years or until the end of the year you turn 71. Unused money can move to an RRSP without tax and without using RRSP room.
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FHSA vs TFSA vs RRSP: which is best for a first home?
For a first home, the FHSA is usually the strongest account because contributions are deductible and qualifying withdrawals are not taxed. A TFSA gives tax-free withdrawals but no deduction. An RRSP gives a deduction, and its Home Buyers' Plan lets you withdraw up to $60,000, but that must be repaid over time.
| Account | Deduction on the way in | Tax on a home withdrawal | Repayment needed |
|---|---|---|---|
| FHSA | Yes | None, if qualifying | No |
| TFSA | No | None | No |
| RRSP Home Buyers' Plan | Yes | None, if repaid on schedule | Yes, over up to 15 years |
You can use the FHSA and the Home Buyers' Plan for the same purchase. Compare the other two accounts with the TFSA vs RRSP calculator, and read more about the account in what an FHSA is.
Turning your FHSA into a down payment plan
An FHSA goal only works if the monthly deposit fits your budget. $8,000 a year is about $667 a month. Use the budget calculator to see what you can set aside, then check what price range that supports with the mortgage affordability calculator.
In EMOH Pay you can create a savings goal for your down payment, log each FHSA contribution and watch the gap close. It is free to start on iPhone, Android and the web, and couples can share a household view with separate logins.
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Get started free➜FHSA Calculator: frequently asked questions
Is FHSA growth taxed?
No. Investment growth inside an FHSA is not taxed, and a qualifying withdrawal to buy a first home is tax-free, so the full balance, including growth, can go toward your purchase.
What if I never buy a home?
You can transfer the FHSA to an RRSP or RRIF without tax and without using RRSP room. If you withdraw it as cash instead, the amount is taxed as income.
Can I contribute more than $8,000 in a year?
Only if you carry forward unused room from a previous year, and carry-forward is capped at $8,000. The most you can contribute in a single year is $16,000.
Does unused FHSA room build from age 18?
No. FHSA room starts only in the year you open your first FHSA. That is why opening one as soon as you are eligible, even with a small amount, is often recommended.
Can my partner and I both have an FHSA?
Yes, as long as each of you qualifies as a first-time home buyer. Each person has their own $40,000 lifetime limit and can use it toward the same home.
Sources and further reading
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