The FHSA Calculator for Canada helps prospective first-time homebuyers estimate how much they can save and grow their funds within a First Home Savings Account (FHSA). This essential tool is designed for Canadians planning to purchase their first home, providing clear projections on contributions, tax deductions, and investment growth. It empowers users to strategize their savings effectively, leveraging the tax-advantaged benefits of the FHSA to achieve their homeownership dreams faster.
The First Home Savings Account (FHSA) is a new registered plan introduced by the Canadian government in 2023 to help Canadians save for their first home. It combines the tax advantages of both an RRSP (tax-deductible contributions) and a TFSA (tax-free withdrawals for a qualifying home purchase).
For 2026, the annual contribution limit for an FHSA remains $8,000, with a lifetime contribution limit of $40,000. Unused contribution room can be carried forward, allowing individuals to maximize their savings towards a down payment.
The FHSA offers significant benefits by allowing contributions to be tax-deductible, reducing your taxable income in the year of contribution. Furthermore, withdrawals, including investment income, are completely tax-free when used to purchase a qualifying first home, making it a powerful savings vehicle.
Yes, similar to RRSPs and TFSAs, an FHSA can hold a variety of eligible investments, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). This allows your savings to grow tax-free within the account, potentially accelerating your path to homeownership.