Finance tool
FHSA calculator
Save for your first home with tax-deductible contributions and tax-free qualifying withdrawals — $8,000/year, $40,000 lifetime.
Interactive tool
FHSA calculator
First-home savings — tax deduction on contributions, tax-free qualifying withdrawal.
Projected FHSA for first home
$48,654
After 5 years at 8% — tax-deductible contributions, tax-free qualifying withdrawal
2026 annual room
$8,000
Up to $8,000 with carryforward
Lifetime cap
$40,000
Max $40,000 contributions total
Est. tax savings / year
$2,401
At 30% marginal rate
Tax-free growth
$8,634
Advantages
- Contributions are tax-deductible — lowers taxable income at your marginal rate
- Investment growth is tax-sheltered inside the account
- Qualifying first-home withdrawal is tax-free (like a TFSA)
- $8,000/year, up to $40,000 lifetime toward a down payment
Disadvantages
- Must be a qualifying first-time home buyer to use funds for a home
- Non-qualifying withdrawals are taxable; account closes after 15 years
- $40,000 lifetime limit — less room than an RRSP for long-term retirement
- Unused room can only carry forward one year ($8,000 max)
At 30% marginal tax, $8,004/year in FHSA contributions could reduce your tax bill by about $2,401 per year — not a flat 40%, but your actual bracket.
Exceeds available room by $4.
FHSA rules are strict — confirm eligibility and room on CRA My Account before contributing.
The problem
A down payment needs a plan, not a wish
The First Home Savings Account combines RRSP-style tax deductions with TFSA-style tax-free withdrawals for a qualifying first home purchase.
Annual contributions cap at $8,000 ($40,000 lifetime), with up to $8,000 carryforward — but growth projections are what turn a goal into a timeline.
How Calqio helps
Growth projection with CRA limits built in
Enter starting balance, monthly savings, return rate, and years. See projected balance against the $40,000 lifetime contribution cap.
Estimate tax savings on contributions at your marginal rate in advanced options.
Real example
Example: $8,000/year for 5 years at 8%
Maxing the annual $8,000 limit for five years hits the $40,000 lifetime contribution cap. At 8% average return, the account could reach roughly $48,000–$50,000 before home purchase.
Qualifying withdrawals for a first home are tax-free. Non-qualifying withdrawals follow different rules.
Common questions
- What are FHSA limits for 2026?
- You can contribute up to $8,000 per year and $40,000 lifetime. Unused room carries forward up to $8,000 into the next year.
- Are FHSA contributions tax-deductible?
- Yes — like RRSP contributions. Qualifying home-purchase withdrawals are tax-free, like a TFSA.
- Who qualifies as a first-time home buyer?
- Generally, you must not have owned a home in the current or prior four calendar years. See CRA rules for full eligibility.
- FHSA vs TFSA for home savings?
- FHSA gives a tax deduction on contributions plus tax-free withdrawal for a first home. TFSAs are more flexible but offer no deduction.