FHSA Investment Calculator Canada
Calculate your First Home Savings Account (FHSA) growth, tax savings, and down payment power. Maximize your Canadian FHSA for your first home purchase.
This calculator estimates your FHSA account growth, tax savings, and total down payment power as a Canadian first-time home buyer.
Estimated FHSA Results
What is the FHSA? Canada’s First Home Savings Account Explained
The First Home Savings Account (FHSA) is a powerful new registered plan for Canadians saving to buy their first home. Launched in 2023, the FHSA lets you contribute up to $8,000 per year (lifetime max $40,000), deduct contributions from your taxable income, and withdraw all funds (including investment growth) tax-free to buy a qualifying home.
- Tax Deductible: Contributions reduce your taxable income, just like an RRSP.
- Tax-Free Growth: Investments inside your FHSA grow tax-free, like a TFSA.
- Tax-Free Withdrawals: Withdraw all funds tax-free for your first home purchase.
- Lifetime Limit: $40,000 per person. Couples can combine for $80,000+ for a down payment.
- Unused Room: Unused contribution room carries forward (max $8,000/year).
- Combine with RRSP HBP: You can use both the FHSA and RRSP Home Buyers' Plan for the same home purchase.
FHSA vs RRSP vs TFSA for First-Time Home Buyers
| Feature | FHSA | RRSP (HBP) | TFSA |
|---|---|---|---|
| Tax Deduction on Contribution | Yes | Yes | No |
| Tax-Free Growth | Yes | Yes | Yes |
| Tax-Free Withdrawal for Home | Yes | Yes (but must repay) | No (tax-free for any use) |
| Repayment Required | No | Yes (within 15 years) | No |
| Lifetime Limit | $40,000 | $35,000 | No limit |
How to Maximize Your FHSA
- Contribute the maximum $8,000/year as early as possible to maximize tax-free growth.
- Invest for growth (e.g., index funds, GICs, stocks) inside your FHSA for higher returns.
- Combine FHSA with RRSP HBP and provincial rebates for a bigger down payment.
- Open your FHSA as soon as you’re eligible—even if you’re not ready to buy yet—to start accumulating contribution room.
FHSA Example Calculation
If you contribute $8,000/year for 5 years at a 5% annual return, you’ll have over $44,000 tax-free for your first home. If your marginal tax rate is 30%, you’ll also save $2,400/year in taxes, for a total tax savings of $12,000.