Free tool · 2026
See how much you can save for your first home down payment, how much your tax deduction gives back and how much you can contribute this year.
Projection based on your inputs. Hover over the chart to see each year.
| Year | Balance at start of year | Contributions this year | Balance + contributions | Return | Interest this year | Total FHSA | Deduction savings |
|---|
Illustrative projection; not financial advice. Assumes a constant return, contributions at the end of each period, the deduction claimed in the year of the contribution with your current income. Room is calculated with the CRA formula without RRSP transfers, designated withdrawals or re-participation. Check your exact room in CRA My Account.
Official sources: CRA: FHSA · CRA: opening an FHSA · CRA: participation room · CRA: deduction · CRA: withdrawals and transfers · CRA: closing an FHSA · Finance Canada: 2023 launch · Revenu Québec: line 215
Age of majority by province: AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, QC, SK, YT
Quick guide
The First Home Savings Account combines the best of the RRSP and the TFSA for your first home: you deduct what you contribute and withdraw tax-free. Here is what you need to know.
Save the down payment for your first home: contributions are tax-deductible and, when you buy, you withdraw everything (contributions and growth) tax-free with nothing to pay back. You can combine it with the RRSP Home Buyers’ Plan (HBP) for the same home.
Canadian residents aged 18 or older (19 where the age of majority is 19: British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Yukon, the Northwest Territories and Nunavut) and 71 or younger on December 31 of the year they open it, who are first-time home buyers: they did not live in a home they or their spouse owned this year or in the previous 4. Available since April 1, 2023.
$8,000 per year and $40,000 lifetime. Room only starts once you open the account. Unused room can be carried forward up to $8,000 to the next year (up to $16,000 in one year). Over-contributions are taxed at 1% per month.
Like an RRSP, contributions are deductible: you save at your marginal rate. You can contribute now and keep the deduction for a higher-income year. In Quebec, the provincial deduction (line 215) equals the federal one. Transfers from your RRSP are not deductible.
A qualifying withdrawal to buy your home is tax-free and never repaid. If you do not buy, you can transfer the balance to your RRSP or RRIF without using RRSP room; any other withdrawal is added to your income and taxed.
Contributions count from January 1 to December 31: there is no 60-day period like the RRSP. The account must be closed by December 31 of the year of the 15th anniversary of opening, the year you turn 71 or the year after your first qualifying withdrawal, whichever comes first.
The deduction lowers your net income, which can increase income-tested benefits such as the Canada Child Benefit or the GST/HST credit. A qualifying withdrawal is not included in your income; a taxable withdrawal is, and can reduce those benefits.
For a tax-free withdrawal you must still be a first-time home buyer, have a written agreement to buy or build before October 1 of the following year, be a Canadian resident, occupy the home as your principal residence within one year and give Form RC725 to your institution. Make sure you have no excess before withdrawing.
Official sources: CRA: opening an FHSA · CRA: participation room · CRA: withdrawals and transfers · CRA: closing an FHSA · Revenu Québec: line 215
Combining an FHSA, an RRSP and the Home Buyers’ Plan can make a big difference. Book a free consultation and let’s build your plan together.
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