§ Calculator · Savings
FHSA projection
First Home Savings Account: $8,000/yr cap, $40,000 lifetime. Contributions are tax-deductible (like RRSP) and the withdrawal for a first home is tax-free.
What this is
The best account for first-time home buyers in Canada
The First Home Savings Account (FHSA) combines the best of RRSP and TFSA. Contributions reduce your tax bill TODAY (like RRSP), AND withdrawals for your first home are tax-free (like TFSA).
- ·Annual cap: $8,000. Lifetime cap: $40,000. Unused room carries forward up to one year (max $16k in a single year).
- ·Account life: 15 years from opening, or until age 71, whichever is first. Use it or lose it.
- ·If you don't buy a home, you can transfer the balance to your RRSP tax-free (without using RRSP room).
Total contributed
$40,000
Tax refunds
$11,860
Investment growth
$6,415
End balance
$46,415
⚠ Hit lifetime $40,000 cap in year 5. Stop contributing to avoid the 1%/mo over-contribution penalty.
Educational projection. Not financial advice. Account life maxes at 15 years from opening or age 71, whichever is first. CRA 2026 caps used throughout.
Disclaimer
Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.