What this FHSA calculator estimates
The calculator begins at the start of the current month, compounds monthly using your annual return less the selected annual investment-fee assumption, and deposits new money at each month-end. The current year's planned contributions are spread over the months remaining this calendar year. Later years use twelve monthly deposits per full calendar year. Annual participation room resets in January, unused room carried forward is capped at $8,000, and new contributions stop at the modeled $40,000 lifetime limit.
It also checks your first FHSA opening year and age to determine whether the planned purchase is beyond the usual participation period. If so, the FHSA is projected only until the closure deadline and is not counted as available for a qualifying FHSA withdrawal at the later purchase date.
The tax estimate multiplies projected personal contributions by the marginal tax rate you choose. FHSA contributions may be deducted in the contribution year or a future year, but the estimate does not determine the best deduction timing or calculate your full tax liability.
Qualifying first-home withdrawals
A qualifying FHSA withdrawal can be tax-free and does not have to be repaid when the applicable CRA conditions are met. Conditions include a written agreement to buy or build a qualifying home, Canadian residency during the specified period, and an intention to occupy the home as a principal residence within one year. Use CRA Form RC725 through your FHSA issuer. The calculator does not determine eligibility.
Eligibility reminder: the first-time-home-buyer tests for opening an FHSA and making a qualifying withdrawal are not identical. Review CRA guidance, including the relevant home-ownership and spouse/common-law-partner considerations, rather than relying on this calculator to establish eligibility.
FHSA room and lifetime limits
The standard annual participation room is $8,000, with up to $8,000 of unused room carried forward. The lifetime limit is $40,000. Room starts when you open your first FHSA, so an account opened later does not create room for earlier years. Your CRA account is the source of truth for current participation room.
If you do not buy a qualifying home
Before your maximum participation period ends, FHSA property can generally be transferred directly to your RRSP or RRIF on a tax-deferred basis, subject to CRA rules. A taxable withdrawal may have different consequences. Your FHSA period generally ends at the end of the year of the 15th anniversary of opening your first FHSA, the year you turn 71, or the year following your first qualifying withdrawal, whichever applies first.
Down payment target versus minimum
Your selected target is distinct from the typical minimum down payment. For a $600,000 home, the usual minimum is $35,000: 5% of the first $500,000 plus 10% of the next $100,000. A 10% personal target is $60,000. Lender criteria, mortgage insurance, closing costs and property-specific conditions can increase the cash required.
Worked example
Suppose an eligible buyer has an unopened contribution history in the first year, $8,000 of participation room and plans $8,000 of personal contributions per calendar year. With no FHSA withdrawals, modeled contributions cannot exceed $40,000 for the ordinary lifetime limit. If they enter a 5% gross return and 0.5% fee, the illustrated compounded annual rate after that assumed fee is approximately 4.48%. Results depend on actual deposit dates, remaining room, fees and markets.
FHSA versus RRSP or TFSA
Personal FHSA contributions may be deductible like RRSP contributions, while qualifying withdrawals for a first home may be tax-free like TFSA withdrawals. Direct RRSP-to-FHSA transfers are not newly deductible, and ordinary FHSA participation room begins only once the first FHSA is opened. FHSA rules are distinct from the RRSP Home Buyers’ Plan (HBP), which has its own eligibility and repayment requirements.
Frequently asked FHSA questions
Can I contribute $16,000 in one year?
Under the ordinary rules, you may have up to $8,000 of unused participation room carried forward, giving a maximum $16,000 of room in a later calendar year, subject to your remaining lifetime limit. The first opening year ordinarily starts with $8,000.
Do FHSA deductions have to be claimed immediately?
No. An eligible contribution's deduction can generally be claimed in the contribution year or a later year. The calculator estimates value at a fixed rate but does not optimize when to claim deductions.
Are RRSP transfers into an FHSA deductible?
Direct RRSP-to-FHSA transfers use FHSA room but are not FHSA tax deductions and do not restore RRSP deduction room.
What happens after the 15-year FHSA period?
The maximum participation period generally ends at the end of the calendar year containing the 15th anniversary of your first FHSA, or earlier under the other FHSA ending rules. Before closing, you may generally transfer qualifying FHSA property directly into an RRSP or RRIF on a tax-deferred basis, subject to CRA rules.
Can my spouse and I each have an FHSA?
Each individual may open and use their own FHSA if eligible. Both may generally make qualifying withdrawals for the same home if both meet the conditions. This calculator models one person's FHSA only.
Is my projected FHSA amount guaranteed tax-free?
No. Tax-free treatment requires meeting the qualifying withdrawal conditions, including the first-time buyer tests and other applicable rules. This calculator does not establish eligibility.
This calculator provides a general educational illustration, not tax, legal, mortgage or investment advice. Returns are assumptions, not forecasts or guarantees. The room logic only covers ordinary contributions and carryforward; it does not model excess room, re-participation amounts, designated withdrawals, split accounts, changing tax brackets or refunds reinvested. It does not verify FHSA eligibility, contribution history, investment suitability, home qualification or the tax treatment of your circumstances. Confirm details with CRA, your FHSA issuer and qualified professionals.