Project your First Home Savings Account balance, tax deduction savings, and how long it takes to reach your down payment goal.
The First Home Savings Account (FHSA), introduced in 2023, combines the best features of the RRSP and TFSA for first-time home buyers. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals for your first home are completely tax-free (like a TFSA).
You can contribute up to $8,000 per year to a maximum lifetime limit of $40,000. Unused annual room carries forward — if you contribute nothing in year one, you can contribute $16,000 in year two. The account must be open for at least one calendar year before a qualifying withdrawal. If you don't buy a home within 15 years of opening the account, the balance can be transferred to your RRSP or RRIF without affecting your existing RRSP contribution room.
The FHSA can be combined with the RRSP Home Buyers' Plan (HBP), letting first-time buyers access both accounts for their down payment.