FHSA + HBP
Calculator
Calculate your FHSA growth, tax savings, and total down payment when you stack your First Home Savings Account with the RRSP Home Buyers' Plan.
Your FHSA details
HBP (RRSP Home Buyers' Plan)
Your results
| Year | Contribution | Balance (start) | Growth | Balance (end) | Tax saved this year |
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Results are estimates for informational purposes only — not financial advice. Always consult a licensed professional before making decisions. Terms of use →
How the FHSA actually compares to RRSP and TFSA
The First Home Savings Account, launched in 2023, is genuinely unusual — it combines the upfront tax deduction of an RRSP with the tax-free withdrawal of a TFSA, something no other Canadian registered account offers.
Why the FHSA is mathematically better than the RRSP Home Buyers' Plan
The RRSP Home Buyers' Plan lets you withdraw up to $60,000 tax-free toward a first home, but it's technically a loan from yourself — you must repay it over 15 years, and missed repayments get added back as taxable income. The FHSA has no repayment requirement at all. Contributions are deducted from your income just like an RRSP, and qualifying withdrawals are completely tax-free, with nothing to pay back. For anyone choosing between the two, the FHSA is almost always the better tool, assuming you have the contribution room and timeline to use it.
The 15-year clock most people don't know about
An FHSA must be closed within 15 years of opening it, or by the end of the year you turn 71, whichever comes first. If you haven't bought a qualifying home by then, you can transfer the balance into an RRSP or RRIF tax-free without affecting your RRSP contribution room, or withdraw it as taxable income. This makes the FHSA low-risk even if your home-buying plans change — the worst case is the money simply becomes RRSP-like savings rather than being lost.
Stacking FHSA and RRSP HBP together
These two programs aren't mutually exclusive. A first-time buyer can use the full $40,000 FHSA limit alongside the $60,000 RRSP Home Buyers' Plan, putting up to $100,000 of tax-advantaged savings toward a down payment. Combined with a partner doing the same, a couple could theoretically bring $200,000 in tax-sheltered savings to closing — a meaningful head start in expensive markets like Toronto or Vancouver.
FHSA frequently asked questions
Key rules for the First Home Savings Account in 2026.
What are the FHSA contribution limits in 2026?
The FHSA annual limit is $8,000 with a lifetime maximum of $40,000. You can carry forward up to $8,000 of unused contribution room from one year to the next — so if you contributed $3,000 in year one, you can contribute up to $13,000 in year two. There is no 60-day grace period like the RRSP.
Can I use both FHSA and the HBP for the same purchase?
Yes — this is the "power move" for first-time buyers. You can withdraw your full FHSA balance tax-free AND withdraw up to $60,000 from your RRSP under the Home Buyers' Plan for the same home purchase. Combined, a couple could access up to $200,000 in tax-advantaged funds ($40K FHSA + $60K HBP each).
Do I have to repay FHSA withdrawals?
No. Unlike the HBP (which must be repaid to your RRSP over 15 years), FHSA qualifying withdrawals are completely tax-free with no repayment required. This makes the FHSA superior to the HBP for the portion of your savings it covers.
What if I never buy a home?
If you don't buy a home within 15 years of opening your FHSA (or before age 71), you can transfer the entire balance to your RRSP or RRIF tax-free — without affecting your RRSP contribution room. The FHSA effectively becomes a bonus RRSP contribution.
What is the HBP repayment rule?
Under the Home Buyers' Plan, the $60,000 RRSP withdrawal must be repaid over 15 years, starting the second year after withdrawal. If you don't repay the annual installment, it's added to your taxable income for that year. Unlike the FHSA, the HBP is a loan from your own retirement savings.
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View all tools →FHSA strategy for first-time buyers
Maximizing the FHSA is one of the most powerful moves a first-time buyer can make.
Open your FHSA even if you can't contribute much yet. The 15-year clock only starts when you open the account — not when you make your first contribution. Opening at 22 vs 27 gives you 5 extra years of potential contribution room and tax-free growth.
If you contribute less than $8,000 in a year, you can carry forward the unused room — up to $8,000 maximum. So if you contributed $3,000 in Year 1, you can contribute up to $13,000 in Year 2. This helps if your income increases significantly in later years.
Each partner gets their own FHSA — $40,000 lifetime each. A couple can accumulate $80,000 in FHSA funds tax-free, plus $120,000 from the HBP ($60K each), for a combined $200,000 in tax-advantaged down payment funds. This is the most powerful first-time buyer strategy available in Canada.
Don't worry — if you don't buy a home within 15 years (or before 71), you can transfer the entire FHSA balance to your RRSP or RRIF tax-free and without using RRSP contribution room. Essentially, the FHSA becomes a bonus RRSP. You never lose the money.