HSA Calculator Canada 2026: Project Your Down Payment Growth

The First Home Savings Account (FHSA) is a game-changer for aspiring homeowners in Canada. By combining the tax deductibility of an RRSP with the tax-free withdrawals of a TFSA, it offers the best of both worlds.

In 2026, you can contribute up to $8,000 (plus any carry-forward room from 2025). Use our calculator to see how your savings could compound over time.

How the FHSA Calculator Works

This calculator assumes you will make consistent annual contributions. It calculates two main things: the compound growth of your investments and the tax refund generated by your contributions.

• Investment Growth: Your money grows tax-free inside the account. The calculator applies an estimated annual return rate to show you the power of compound interest.
• Tax Refund: Since contributions are tax-deductible, you get money back at tax time. We estimate this based on your marginal tax rate. Reinvesting this refund can supercharge your savings.

FHSA Rules You Must Know for %currentyear%

Keep these golden rules in mind to maximize your benefits:

• Annual Limit: You gain $8,000 of contribution room each year.
• Lifetime Limit: The maximum lifetime contribution limit is $40,000.
• Carry-Forward: Unused room can be carried forward, but only up to a maximum of $8,000 extra in any given year. This means the max you can contribute in one year (if you have carry-forward) is $16,000.
• 15-Year Rule: The account must be closed after 15 years, or by the end of the year you turn 71. If you haven’t bought a home by then, you can transfer the funds to your RRSP without using RRSP contribution room.

FHSA vs. RRSP vs. TFSA

Which account is best for your down payment? The FHSA is generally the winner because it combines the benefits of both:

• Tax Deduction (Like RRSP): You get a tax break when you put money in.
• Tax-Free Withdrawal (Like TFSA): You don’t pay tax when you take money out for a home.
• No Repayment: Unlike the RRSP Home Buyers’ Plan (HBP), you do not have to pay back the funds withdrawn from an FHSA.

Frequently Asked Questions

Can I use both FHSA and RRSP HBP?

Yes! You can combine withdrawals from your FHSA and the RRSP Home Buyers’ Plan (up to $60,000 currently) to maximize your down payment.

What if I don’t buy a house?

If you decide not to buy, you don’t lose the money. You can transfer it tax-free to your RRSP or RRIF. This effectively gives you extra RRSP contribution room!