Calculate your Tax-Free First Home Savings Account contribution room, tax refund, and 5-year projected balance. The single best government program for Canadian first-time home buyers.
Tax-Free First Home Savings Account (FHSA) rules per the CRA: $8,000 annual contribution room, $40,000 lifetime cap, room starts accruing the year you open the account. Up to $8,000 of unused room can be carried forward one year. Withdrawals to buy a first home are tax-free. The account must be closed within 15 years of opening (or by age 71) — unused funds at that point can be transferred to your RRSP without using new RRSP room. Combine with the Home Buyers’ Plan (RRSP HBP) for an additional $60,000 of first-home savings power. Eligibility: Canadian resident, 18+, has not lived in a home you owned in the current or prior 4 calendar years.
RRSP-style deduction + TFSA-style growth
The FHSA is unique. Contributions are tax-deductible (like an RRSP) — a $40,000 lifetime contribution at a 30 % marginal rate produces $12,000 in cumulative tax refunds. Growth and withdrawals (for a qualified first-home purchase) are tax-free (like a TFSA). No other Canadian registered account combines both features.
Eligibility
Canadian resident, age 18+, has not lived in a home you owned in the current calendar year or any of the previous 4 years. The 4-year clock means you may qualify even if you’ve owned a home in the past, as long as you’ve been renting (or living rent-free) for the last 4+ years.
How to use it well
Open it as soon as you might want to buy a home in the next 15 years, even with $0 contribution — that starts the contribution-room clock. Contribute up to $8,000/year. Invest in low-cost index funds or HISAs depending on your time horizon (HISA for purchases under 3 years, balanced index fund for purchases 3–7 years out, equity-tilted for 7+ years). Withdraw when you’re ready to buy, completely tax-free.
This tool is for educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a licensed Canadian healthcare professional. Read our full disclaimer.