FHSA MAXIMIZER CALCULATOR
Prosperics' FHSA Maximizer is a free Canadian calculator that sequences your First Home Savings Account, RRSP and TFSA from your income, province and timeline, then stacks the FHSA with the Home Buyers' Plan to show how much tax-free cash you can bring to closing — over $100,000 for many first-time buyers — with 30-year projections and RRSP-transfer deadline warnings.
The FHSA allows $8,000/year up to $40,000 lifetime. Unlike RRSP, unused room only carries forward $8,000 max. Open your FHSA as soon as possible to start accumulating contribution room, even if you can only contribute a small amount initially.
Understanding the First Home Savings Account (FHSA) · Account Sequencing: Optimizing FHSA, RRSP & TFSA · RRSP vs TFSA: When Each Makes Sense · Home Buyers' Plan: Combining FHSA and HBP
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The First Home Savings Account (FHSA) is a registered account for Canadian residents aged 18-71 who are first-time home buyers. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). Annual limit is $8,000 with a $40,000 lifetime limit.
It depends on your marginal tax rate and goals. If you plan to buy a home, FHSA is often best — you get both a tax deduction now and tax-free withdrawal later. For high earners not buying a home, RRSP may be better for larger deductions. For lower earners, TFSA avoids locking in small deductions.
Yes, up to $8,000 of unused room can be carried forward to the following year, meaning you could contribute up to $16,000 in a single year. However, carry-forward only begins after you open an FHSA — unused room does not accumulate before that.
You must close the FHSA by December 31 of the year you turn 71, or 15 years after opening it (whichever is earlier). Unused funds can be transferred tax-free to your RRSP (subject to room) or withdrawn as taxable income.
Yes. You can withdraw from your FHSA (tax-free, no repayment) and use the Home Buyers' Plan to withdraw up to $60,000 from your RRSP (tax-free, but must be repaid over 15 years). Combined, these can provide significant tax-free funds for a down payment.
It is the difference between your current marginal tax rate and your expected retirement marginal rate. A positive advantage means RRSP contributions save more tax now than you will pay on withdrawals in retirement — making RRSP particularly valuable.
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