See how your First Home Savings Account could grow before you buy. Contribute up to $8,000 per year (lifetime limit: $40,000) and watch tax-free investment growth build toward your down payment.
Open a Wealthsimple account· — invest your FHSA contributions commission-free in stocks and ETFs.
The First Home Savings Account is a registered savings account introduced in Canada in 2023. It combines the best features of an RRSP and a TFSA for first-time homebuyers: contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy a home are completely tax-free (like a TFSA). Investment growth inside the account is tax-sheltered while it remains invested.
To open an FHSA you must be a Canadian resident, at least 18 years old, and a first-time home buyer — meaning you have not owned a qualifying home in which you lived as a principal residence at any time in the current calendar year or in the preceding four calendar years.
The FHSA has two contribution limits that this calculator enforces:
Annual limit: $8,000 per calendar year. Unlike a TFSA, unused annual room does not simply carry forward indefinitely — this calculator applies the $8,000 cap per year without carry-forward logic.
Lifetime limit: $40,000 in total contributions across all years. Once you have contributed $40,000, no further contributions can be made. Your balance can continue to grow through investment returns beyond $40,000 — this calculator correctly keeps compounding the balance after contributions stop.
With the maximum $8,000 per year, the lifetime cap is reached in five years. The default inputs in this calculator (5 years, $8,000/year) illustrate this scenario.
The calculator uses end-of-year annual compounding — a conservative ordinary annuity approach. Each year:
Your existing balance grows by the chosen return rate.
This year's contribution is added at year-end (after growth on the existing balance).
Once cumulative contributions reach $40,000, future years contribute $0 — but the balance keeps compounding.
The real (today's dollars) balance applies your chosen inflation rate to show the purchasing power of the projected amount in current terms.
Starting from $0 with $8,000 contributed each year at a 6% annual return over 5 years:
Year 1: $0 × 1.06 + $8,000 = $8,000
Year 2: $8,000 × 1.06 + $8,000 = $16,480
Year 3: $16,480 × 1.06 + $8,000 = $25,469
Year 4: $25,469 × 1.06 + $8,000 = $34,997
Year 5: $34,997 × 1.06 + $8,000 = $45,097 (lifetime cap reached; contributions stop after this year)
The final nominal balance of approximately $45,097 includes $40,000 in contributions and roughly $5,097 in tax-free investment growth. At 2% inflation over 5 years, the real balance is approximately $40,838 in today's dollars.
If you continue investing for 10 years (years 6–10 with $0 contributions), the balance keeps growing through compounding alone — reaching approximately $60,000 nominal by year 10.
Tax savings from the FHSA deduction — contributions reduce your taxable income. A separate tax-savings estimate tool is coming. See our RRSP Tax Refund Calculator for a similar deduction estimate.
Contribution-room carry-forward — the CRA allows carrying forward up to $8,000 of unused room from the prior year (maximum $16,000 in a catch-up year). This calculator applies a flat $8,000/year without carry-forward.
FHSA + RRSP Home Buyers' Plan (HBP) combination strategies.
RRSP-to-FHSA transfers or multiple FHSA accounts.
Province-specific tax treatment of withdrawals or transfers.
You can contribute up to $8,000 per calendar year to your FHSA. The lifetime contribution limit across all years is $40,000. Unlike TFSAs, unused FHSA room does not accumulate indefinitely — this calculator applies a hard $8,000 annual cap without carry-forward.
Yes — if you make a qualifying first-home purchase. Withdrawals from your FHSA are completely tax-free when used to buy a qualifying first home. Growth inside the account is not taxed while it remains in the FHSA. If you do not buy a home, the funds can be transferred to an RRSP or RRIF without tax consequences, but withdrawals for other purposes are taxable as income.
You can no longer contribute to an FHSA after the 15th anniversary of opening the account, or after the year you turn 71, whichever comes first. The account must be closed by December 31 of the year following your first qualifying withdrawal, or by the end of the year you turn 71 if no withdrawal has been made.
Both accounts shelter investment growth from tax. The key differences: FHSA contributions are tax-deductible (like an RRSP), reducing your taxable income in the year you contribute, while TFSA contributions are not. However, the FHSA has a $40,000 lifetime contribution limit and is specifically for a first home purchase, while the TFSA has no purpose restriction. For first-time buyers, the FHSA is generally superior because of the deduction benefit on the way in and the tax-free withdrawal on the way out.
Methodology — End-of-year contributions, annual compounding: balance = balance × (1 + returnRate) + contribution. The 6% default reflects FP Canada's 2024 Projection Assumption Guidelines for a balanced portfolio. The 2% inflation default reflects the Bank of Canada's target. FHSA limits per CRA ($8,000/yr, $40,000 lifetime).
