See how much a First Home Savings Account (FHSA) could grow to for your down payment. You can contribute $8,000 a year, up to $40,000 in total, deduct it like an RRSP contribution and withdraw everything tax-free to buy your first home. Saving $8,000 a year for 5 years at 5% grows to about $46,415, plus about $12,000 in tax savings at a 30% tax rate.
FHSA Calculator
First Home Savings Account growth and tax refunds · Updated October 12, 2026
- Total contributions
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- Tax-free investment growth
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- Tax savings from deductions
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- Years to reach the $40,000 limit
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Assumes contributions at the start of each year and a steady return. Investment returns are not guaranteed.
FHSA rules
| Rule | Limit |
|---|---|
| Annual contribution limit | $8,000 |
| Lifetime contribution limit | $40,000 |
| Unused room you can carry forward | Up to $8,000 |
| Contributions | Tax-deductible (except money transferred from an RRSP) |
| Qualifying withdrawals for a first home | Tax-free |
| Account must close by | Dec 31 of the year of the 15th anniversary, age 71, or the year after your first qualifying withdrawal, whichever is first |
Examples
| Plan | Contributions | Balance | Tax savings |
|---|---|---|---|
| $8,000 a year for 5 years at 5%, 30% tax rate | $40,000 | $46,415 | $12,000 |
| $4,000 a year for 10 years at 6%, 20% tax rate | $40,000 | $55,887 | $8,000 |
| $8,000 a year for 5 years, left for 15 years at 5% | $40,000 | $75,606 | $12,000 |
Who can open an FHSA
- You are a resident of Canada and at least 18 (19 in some provinces).
- You are a first-time home buyer: you did not live in a home that you or your spouse or common-law partner owned at any time in the current year or the previous 4 calendar years.
- Couples can each open their own FHSA, so together they can save $80,000.
You can use an FHSA and the RRSP Home Buyers’ Plan for the same home. You don’t have to claim the deduction in the year you contribute; saving it for a higher-income year can give a bigger refund.
FAQ
What if I never buy a home?
You can transfer the money to your RRSP or RRIF tax-free without using RRSP room. Otherwise, withdrawals are taxable income.
When does contribution room start?
Room only starts building once you open an account, so opening one early, even with a small deposit, lets you carry forward unused room.
Related calculators
- Mortgage Affordability CalculatorHow much house you can afford
- TFSA Contribution Room CalculatorYour 2026 TFSA room
Sources
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.