FHSA methodology
Last verified: Effective for 2026 tax year by Fiscal Moose
Open the FHSA calculatorThe First Home Savings Account (FHSA) is a registered account that lets eligible first-time home buyers contribute tax-deductible money toward a qualifying home purchase, with tax-free growth and tax-free qualifying withdrawals. This page documents the limits and rules our FHSA tooling relies on, the source we verify them against, and the known limitations of our model.
Current limits (2026 tax year)
| Annual contribution limit | $8,000 |
|---|---|
| Lifetime contribution limit | $40,000 |
| Maximum carry-forward into next year | $8,000 |
| Maximum participation period | 15 years |
| Maximum age (year-end) | 71 |
These values are read directly from our versioned data file
(packages/data/src/fhsa/limits.ts). Every time you load
this page the numbers above are the same numbers the
FHSA calculator uses.
How carry-forward works
Unused FHSA contribution room from one year carries forward to the next, up to $8,000. The lifetime cap of $40,000 still applies regardless of how much room you've accumulated through carry-forward. The clock starts the year you open your first FHSA.
FHSA and the Home Buyers' Plan
The Home Buyers' Plan (HBP) is a separate program from the FHSA. The HBP lets eligible first-time home buyers withdraw from their RRSP for a qualifying home purchase and repay the withdrawal over 15 years. As of Budget 2024, the HBP withdrawal limit is $60,000 per individual (raised from $35,000) for withdrawals made after 16 April 2024.
A first-time home buyer can use both the FHSA and the HBP for the same qualifying home purchase when the eligibility conditions for each program are met. There is no combined cap between the two: the FHSA limit is governed by the lifetime contribution cap of $40,000, and the HBP limit is governed by its own $60,000 ceiling. They stack.
In our RRSP calculator and FHSA calculator the HBP overlay is its own clearly labelled output, not a merged "combined limit" figure. We separate them deliberately, because conflating the two programs is one of the most common errors in third-party Canadian calculators we audited. If you are weighing the FHSA and HBP against how much home you can actually afford, the mortgage affordability calculator applies the federal stress test and debt-service limits to your income and down payment.
Why the FHSA shows a projection (and TFSA/RRSP do not)
The FHSA calculator shows an illustrative balance projection; our TFSA and RRSP calculators deliberately do not. The reason is the FHSA's purpose. An FHSA is built for a single timed goal, buying a first home, and it has a participation window that closes, so a rough estimate of what your balance could reach by a target year genuinely helps that decision. The projection is illustrative home-purchase planning based on the contributions and return you enter. It is not a forecast, not investment advice, and not a guaranteed account value, and it compounds at a single assumed rate you can change.
TFSA and RRSP are general-purpose registered accounts, so our TFSA calculator and RRSP calculator report contribution room and deduction limits only. Adding a balance projection there would invite a multi-decade number to be read as a promise, which is why we keep general investment forecasting out of those tools.
Notes from the verification record
Annual limit of $8,000 has been stable since FHSA launch (2023). Lifetime $40,000 cap applies across all FHSAs an individual holds. The Home Buyers’ Plan withdrawal limit (a SEPARATE program from the FHSA) was raised from $35,000 to $60,000 by Budget 2024 for withdrawals after 16 April 2024. The FHSA and HBP can both be used for the same qualifying home purchase; there is no combined cap. Re-verify on each annual refresh.
Source
Known limitations
- These limits apply to the 2026 tax year. Earlier years are added as year-specific data files; this page documents only the current year.
- Eligibility for opening an FHSA requires being a Canadian resident, at least 18 years old, and a first-time home buyer as defined by the CRA. Our tooling assumes eligibility; it does not validate it for you.
- The FHSA and the Home Buyers’ Plan are separate programs. The HBP $60,000 withdrawal limit (Budget 2024) is the HBP’s own ceiling, not an FHSA limit, and the two programs do not share a combined cap. The calculator reports FHSA and HBP figures separately, never as a combined cap.
- Tax deduction timing follows the same rules as RRSPs: you can deduct in the contribution year or carry the deduction forward.
- Quebec residents have parallel provincial FHSA treatment via Revenu Québec. Our tooling models federal mechanics; the Quebec-specific overlay is verified separately.