See the tax refund from your FHSA contributions in your province, and what your First Home Savings Account could grow to for your first home.
A year, before tax
Up to $8,000 a year, $40,000 in all
A year
For your first home
$46,415
Tax-free, after 5 years
What this means
An FHSA works like an RRSP going in (each contribution cuts your tax) and like a TFSA coming out (no tax when you take it out for your first home). Putting in $8,000 saves about $2,522 of tax each year.
If you don’t buy a home, you can move the money into your RRSP without using RRSP room.
| You put in | Refund | Real cost |
|---|---|---|
| $2,000 | $675 | $1,325 |
| $4,000 | $1,336 | $2,664 |
| $6,000 | $1,929 | $4,071 |
| $8,000 | $2,522 | $5,478 |
On $75,000 in Ontario, putting in $8,000 a year for 5 years at a 5% return:
| Amount | |
|---|---|
| Tax refund each year | $2,522 |
| Refunds in all | $12,610 |
| FHSA at 5 years, tax-free for your home | $46,415 |
See FHSA explained for who qualifies.
Last updated
Up to $8,000 a year and $40,000 in all. Up to $8,000 of unused room carries into the next year.
About your top tax rate on what you put in. On $75,000 in Ontario, $8,000 in an FHSA saves about $2,500 of tax.
You can move the money into your RRSP or RRIF without using RRSP room, or take it out and pay tax on it.
Yes, for the same home. You can take your FHSA tax-free and borrow up to $60,000 from your RRSP.