FHSA vs RRSP Calculator
Compare the First Home Savings Account and RRSP Home Buyers' Plan to determine which savings strategy is best for your situation. See tax savings, investment growth, and repayment obligations to make an informed decision.
FHSA vs RRSP Optimizer
Compare the First Home Savings Account (FHSA) and RRSP to determine which savings vehicle is better for your home purchase goals.
Official sources
Limitations
- Assumes you qualify as a first-time home buyer every year; the 15-year/age-71 closure rules are not enforced.
Results are estimates for general information and are not legal, tax, payroll or financial advice. Employment contracts, collective agreements and individual circumstances can change what you are owed.
Frequently Asked Questions
What is the FHSA (First Home Savings Account)?
The First Home Savings Account (FHSA) is a registered savings account introduced in 2023 that allows first-time home buyers to save up to $8,000 per year (lifetime limit $40,000) with a tax deduction. The funds grow tax-free and can be withdrawn tax-free to purchase a principal residence.
What is the Home Buyers' Plan (HBP)?
The Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their RRSP without paying income tax to purchase or build a home. However, the amount must be repaid over 15 years. If you miss a repayment, it becomes taxable income.
Should I use FHSA or RRSP for home savings?
The FHSA is generally better for first-time buyers because: (1) tax-free withdrawal with no repayment, (2) contributions are tax-deductible, (3) no income restrictions. Use this calculator to compare your specific situation. Many first-time buyers maximize the FHSA first ($8,000/year), then use the RRSP for additional savings.
Can I use both FHSA and RRSP?
Yes! Many first-time buyers use both accounts. A common strategy is to contribute $8,000 to FHSA first (to get the tax deduction and tax-free withdrawal benefit), then contribute additional savings to an RRSP. You can use the HBP to withdraw from your RRSP later if needed.