Canadian Housing & Tax Calculator

FHSA vs. RRSP HBP Calculator Canada 2026

Compare the First Home Savings Account (FHSA) vs. Home Buyers' Plan (HBP) limits, tax refund savings, and combined down payment power for Canadian first-time home buyers.

Researched by usecos Research & Engineering · Official CRA sources verified August 1, 2026

FHSA vs. RRSP Home Buyers' Plan: Side-by-Side Comparison

Feature	FHSA	RRSP HBP
Annual Contribution Limit	$8,000/yr	18% of earned income (RRSP room)
Lifetime / Withdrawal Cap	$40,000 lifetime	$60,000 (Budget 2024)
Tax Deduction on Contribution	✅ Yes — deductible	✅ Yes — deductible
Withdrawal Tax	✅ Tax-free for qualifying home	✅ Tax-free (if repaid on schedule)
Repayment Obligation	$0 — No repayment ever	15-year repayment (1/15th/yr)
Missed Repayment Penalty	N/A	Added to taxable income
Carry-Forward Room	Up to $8,000 unused room	Unlimited RRSP room carry-forward
Can Be Combined	✅ Yes — FHSA + HBP = up to $100k individual / $200k couple

Worked Example: Ontario Couple Earning $85,000 Each

Scenario: Two first-time buyers, each earning $85,000/yr (30.5% combined marginal rate in Ontario), both maximizing FHSA and HBP.

Person A — FHSA: $8,000/yr × 5 years = $40,000 (lifetime cap). Tax refund: $40,000 × 30.5% = $12,200 total deductions.
Person A — HBP: Withdraws $60,000 from RRSP. Must repay $4,000/yr for 15 years.
Person B: Same as Person A — $40,000 FHSA + $60,000 HBP.
Combined capacity: ($40,000 + $60,000) × 2 = $200,000 tax-free down payment.
Combined tax refund: $12,200 × 2 = $24,400 from FHSA deductions alone.
Combined HBP repayment: $4,000 × 2 = $8,000/yr for 15 years.

Optimal strategy: Max FHSA first ($0 repayment), then use HBP for additional capacity. The $24,400 in FHSA tax refunds can be directed toward closing costs or reinvested.

Methodology, Assumptions & Limitations

Methodology

Marginal tax rates are approximate combined federal + Ontario rates for 2026. The calculator uses simplified bracket thresholds, not the precise provincial schedule for every province.
FHSA contribution limits follow Income Tax Act s. 146.6 ($8,000 annual, $40,000 lifetime).
HBP withdrawal limits follow Income Tax Act s. 146.01 ($60,000 cap, effective April 2024 under Budget 2024).
HBP repayment is calculated as withdrawal ÷ 15 (equal annual instalments over the 15-year repayment period).

Limitations — What This Calculator Does Not Replace

This tool does not verify your FHSA or RRSP contribution room. Check your CRA My Account for actual room.
Provincial marginal rates vary significantly (especially Quebec). Use a detailed provincial tax calculator for precision.
The calculator does not account for FHSA investment growth or RRSP investment returns.
Eligibility as a "first-time home buyer" has specific CRA rules — consult CRA's definitions if you've previously owned a home.
This is a planning estimate, not tax advice. Consult a tax professional or financial advisor for your specific situation.

CRA First Home Savings Account (FHSA) →CRA Home Buyers' Plan (HBP) →Income Tax Act, s. 146.6 (FHSA) →

What To Do Next

Check your actual FHSA and RRSP room on CRA My Account.
Estimate your full mortgage payment using the usecos Mortgage Calculator to see if your combined FHSA + HBP down payment meets the 5%/10%/20% thresholds.
Check CMHC insurance costs — down payments under 20% require mortgage default insurance. Use the CMHC Insurance Calculator.
Estimate closing costs including land transfer tax with the Closing Cost Calculator.
Read the full guide: How Much House Can I Afford in Canada?

FHSA vs. RRSP Home Buyers' Plan: Side-by-Side Comparison

Feature	FHSA	RRSP HBP
Annual Contribution Limit	$8,000/yr	18% of earned income (RRSP room)
Lifetime / Withdrawal Cap	$40,000 lifetime	$60,000 (Budget 2024)
Tax Deduction on Contribution	✅ Yes — deductible	✅ Yes — deductible
Withdrawal Tax	✅ Tax-free for qualifying home	✅ Tax-free (if repaid on schedule)
Repayment Obligation	$0 — No repayment ever	15-year repayment (1/15th/yr)
Missed Repayment Penalty	N/A	Added to taxable income
Carry-Forward Room	Up to $8,000 unused room	Unlimited RRSP room carry-forward
Can Be Combined	✅ Yes — FHSA + HBP = up to $100k individual / $200k couple

Worked Example: Ontario Couple Earning $85,000 Each

Scenario: Two first-time buyers, each earning $85,000/yr (30.5% combined marginal rate in Ontario), both maximizing FHSA and HBP.

Person A — FHSA: $8,000/yr × 5 years = $40,000 (lifetime cap). Tax refund: $40,000 × 30.5% = $12,200 total deductions.
Person A — HBP: Withdraws $60,000 from RRSP. Must repay $4,000/yr for 15 years.
Person B: Same as Person A — $40,000 FHSA + $60,000 HBP.
Combined capacity: ($40,000 + $60,000) × 2 = $200,000 tax-free down payment.
Combined tax refund: $12,200 × 2 = $24,400 from FHSA deductions alone.
Combined HBP repayment: $4,000 × 2 = $8,000/yr for 15 years.

Optimal strategy: Max FHSA first ($0 repayment), then use HBP for additional capacity. The $24,400 in FHSA tax refunds can be directed toward closing costs or reinvested.

Methodology, Assumptions & Limitations

Methodology

Marginal tax rates are approximate combined federal + Ontario rates for 2026. The calculator uses simplified bracket thresholds, not the precise provincial schedule for every province.
FHSA contribution limits follow Income Tax Act s. 146.6 ($8,000 annual, $40,000 lifetime).
HBP withdrawal limits follow Income Tax Act s. 146.01 ($60,000 cap, effective April 2024 under Budget 2024).
HBP repayment is calculated as withdrawal ÷ 15 (equal annual instalments over the 15-year repayment period).

Limitations — What This Calculator Does Not Replace

This tool does not verify your FHSA or RRSP contribution room. Check your CRA My Account for actual room.
Provincial marginal rates vary significantly (especially Quebec). Use a detailed provincial tax calculator for precision.
The calculator does not account for FHSA investment growth or RRSP investment returns.
Eligibility as a "first-time home buyer" has specific CRA rules — consult CRA's definitions if you've previously owned a home.
This is a planning estimate, not tax advice. Consult a tax professional or financial advisor for your specific situation.

What To Do Next

Check your actual FHSA and RRSP room on CRA My Account.

Estimate your full mortgage payment using the usecos Mortgage Calculator to see if your combined FHSA + HBP down payment meets the 5%/10%/20% thresholds.

Check CMHC insurance costs — down payments under 20% require mortgage default insurance. Use the CMHC Insurance Calculator.

Estimate closing costs including land transfer tax with the Closing Cost Calculator.

Read the full guide: How Much House Can I Afford in Canada?

FHSA vs. RRSP HBP Calculator Canada 2026

FHSA vs. RRSP Home Buyers' Plan: Side-by-Side Comparison

Worked Example: Ontario Couple Earning $85,000 Each

Methodology, Assumptions & Limitations

Methodology

Limitations — What This Calculator Does Not Replace

What To Do Next

FHSA vs. RRSP HBP Calculator Canada 2026

⚙️ Your Savings Profile

📊 Down Payment Summary

Related Resources

FHSA vs. RRSP Home Buyers' Plan: Side-by-Side Comparison

Worked Example: Ontario Couple Earning $85,000 Each

Methodology, Assumptions & Limitations

Methodology

Limitations — What This Calculator Does Not Replace

What To Do Next

⚙️ Your Savings Profile

📊 Down Payment Summary

Related Resources