Canada offers two powerful tax-advantaged programs for first-time buyers: the FHSA (up to $40,000 tax-free, never repaid) and the RRSP Home Buyers' Plan (up to $60,000, repaid over 15 years). This calculator shows how to stack them for the maximum down payment and the largest tax refund.
Canada's two tax-advantaged programs for first-time buyers — stack them for a larger down payment.
Enter your annual income (used to estimate your marginal tax rate and the value of your FHSA deduction), your current FHSA balance, years until purchase, and your current RRSP balance. The calculator assumes you contribute the maximum $8,000/year to your FHSA going forward and projects your balance at the time of purchase.
The Total Tax-Free Down Payment combines what you can withdraw from both programs without paying tax. FHSA withdrawals are completely tax-free and never need to be repaid — this is the most powerful feature. RRSP HBP withdrawals are also tax-free at the time of withdrawal, but must be repaid to your RRSP over 15 years (1/15 per year). If you miss a repayment, that year's portion is added to your taxable income.
The Estimated Tax Refund from your FHSA contributions is real money — at a 43% marginal rate, $8,000 in FHSA contributions generates a $3,440 refund. Over 5 years of contributions, that's $17,200 in refunds you can redirect to your down payment or investment account.
The most powerful strategy is to open your FHSA as early as possible, even if you don't plan to buy for several years. The lifetime $40,000 limit is fixed — you can't catch up unused room from years you didn't have the account open. Starting early maximizes both the tax refunds and the investment growth inside the account.
The First Home Savings Account (FHSA) is a registered account launched in 2023. Contributions are tax-deductible (like an RRSP), withdrawals for a first home purchase are tax-free (like a TFSA), and unused funds can be rolled into your RRSP. Annual limit: $8,000. Lifetime limit: $40,000.
Yes — you can use both in the same home purchase. FHSA withdrawals never need to be repaid. RRSP HBP withdrawals must be repaid over 15 years (1/15 per year, or it's added to your taxable income).
The FHSA must be open for at least one calendar year before you can make a qualifying withdrawal. Open the account as early as possible, even if you only contribute a small amount initially.
Canadian residents who are 18–71, have a valid SIN, and have not lived in a home they or their spouse owned in the current year or any of the preceding four calendar years. You must be a first-time home buyer as defined by CRA.
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