Should the next dollar go to FHSA or RRSP?
Compare first-home savings accounts and regular savings. See the potential tax savings, money available to buy, and repayments later.
Canadian planning estimate · No account required
Estimate
Fill FHSA room first for this home.
Estimated FHSA refund: $2,372. Once FHSA room is full, the Home Buyers' Plan can stack on top for the same home.
Key numbers
Assumes 4% yearly growth before buying, with the estimated tax refund saved for the home. Both are inputs on this page.
Assumptions to check (5)
- Contributions are modeled from the start of a calendar year. New room becomes available each January, not in advance. Regular savings growth is before tax; investment returns are assumptions, not guarantees.
- Only the first year’s income-tax saving is included. If reinvested, it arrives after 12 months. Future refunds, pension adjustments, and changes to income or tax rules are not modeled.
- FHSA room must account for prior contributions and transfers, not investment growth. Confirm your available room and eligibility with CRA; HBP contributions generally need to remain in the RRSP for at least 90 days to be deductible.
- You can use both accounts for the same home: fill FHSA room first, then add RRSP Home Buyers' Plan money on top.
- Saving beyond your contribution room is modeled as regular savings, not as an over-contribution.
What this means for you
This compares the down-payment value of FHSA, RRSP Home Buyers' Plan, and regular savings.
They are not either-or: most first-time buyers fill FHSA room first, then add Home Buyers' Plan money from an RRSP. The two stack on the same home.
The RRSP row shows a bigger total here because it has more contribution room, but every Home Buyers' Plan dollar has to be paid back. FHSA dollars do not, so fill FHSA room first, then stack the Home Buyers' Plan on top.
If you are eligible, use FHSA for the next home-saving dollar first and keep the refund for the down payment. Once FHSA room is full, the Home Buyers' Plan can add up to $60,000 more.
Before using RRSP HBP money, add about $1,871 per year to your future budget for repayments, starting around 2031.
The inputs that move this answer most: FHSA room · RRSP room · Years until buying · Keeping the refund.
See how Fred can help with the next stepEstimates only, not financial advice. Rates checked June 2026.
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