FHSA vs RRSP Calculator
For a first home purchase, compare FHSA's no-repayment tax-free withdrawal against the RRSP Home Buyers' Plan's 15-year repayment obligation.
FHSA vs RRSP (Home Buyers' Plan)
FHSA Repayment Required
$0
RRSP/HBP Annual Repayment
$2,667/yr
FHSA
RRSP via Home Buyers' Plan
What Is the FHSA vs RRSP Calculator?
Both an FHSA and an RRSP (through the Home Buyers' Plan) let a first-time buyer withdraw savings tax-free toward a home purchase — but they work very differently afterward. An FHSA withdrawal is permanently, unconditionally yours: no repayment is ever required. An RRSP withdrawal under the Home Buyers' Plan (HBP) must be repaid back into your RRSP over 15 years — if you miss a year's required repayment, that amount is added to your taxable income for that year instead. This calculator shows exactly what that repayment obligation looks like for a given withdrawal amount, and how it compares to the FHSA's complete lack of one.
This is a different question from the RRSP vs TFSA Calculator's general tax-rate comparison, or the FHSA Contribution + Tax Savings Calculator's contribution-side savings — this calculator focuses specifically on what happens after you withdraw the funds for your home purchase.
FHSA vs RRSP Calculator Formula
HBP Annual Repayment = Withdrawal Amount ÷ 15 Years
FHSA Repayment = $0, always
How Is the FHSA vs RRSP Calculator Calculated?
Under the Home Buyers' Plan, the CRA divides your total HBP withdrawal evenly across a 15-year repayment schedule, starting in the second year after your withdrawal. Each year, you're expected to repay that installment back into your RRSP. If you repay more than the minimum in a given year, future required payments are reduced accordingly; if you repay less (or nothing), the shortfall for that year is added directly to your taxable income, effectively taxing that portion of the withdrawal after all.
An FHSA withdrawal for a qualifying home purchase has no such mechanism at all — once withdrawn for the home, the money is simply yours, with no future repayment, obligation, or tax consequence tied to it.
FHSA vs RRSP Calculator Example
A $40,000 withdrawal: under the Home Buyers' Plan, this means $2,667 must be repaid to the RRSP every year for 15 years, totaling the full $40,000 eventually repaid. From an FHSA, the same $40,000 withdrawal requires no repayment at all — ever.
A $60,000 withdrawal — the maximum allowed under the Home Buyers' Plan: this requires $4,000 in annual RRSP repayments for 15 years. An FHSA has no equivalent withdrawal cap tied to a specific dollar figure like this (only a $40,000 lifetime contribution limit, separate from how much the account balance can grow to).
A smaller $25,000 withdrawal: the Home Buyers' Plan requires about $1,667 per year in repayments for 15 years — a real, ongoing commitment that continues well after the home purchase, unlike the FHSA's zero obligation.
How to Use the FHSA vs RRSP Calculator
Step 1
Enter the amount you plan to withdraw toward your home purchase.
Step 2
Compare the FHSA's zero repayment obligation against the Home Buyers' Plan's 15-year repayment schedule.
Step 3
Check whether your planned withdrawal exceeds the $60,000 Home Buyers' Plan limit.
Benefits
- Makes the Home Buyers' Plan's often-overlooked 15-year repayment obligation concrete and specific to your withdrawal amount.
- Clarifies the important distinction between FHSA's contribution limit and the Home Buyers' Plan's withdrawal limit, which work differently.
- Uses verified current CRA Home Buyers' Plan and FHSA figures.
- Free, instant, and runs entirely in your browser.
Common FHSA vs RRSP Calculator Scenarios
Scenario 1
Deciding whether to prioritize FHSA contributions or plan to use the Home Buyers' Plan for a first home purchase.
Scenario 2
Understanding the real ongoing cost of using RRSP savings through the Home Buyers' Plan.
Scenario 3
Planning post-purchase cash flow around a required HBP repayment schedule.
Scenario 4
Explaining to a first-time buyer why an FHSA withdrawal is genuinely different from an RRSP withdrawal, even though both can be tax-free at the time.
Scenario 5
Deciding how to split savings between FHSA and RRSP contribution room ahead of a home purchase.
Understanding Your Result
The repayment figure shown for the Home Buyers' Plan represents a real, ongoing financial commitment for 15 years after your withdrawal — it's not a one-time cost, but an annual obligation that continues well after you've moved into your new home. Missing a year's repayment doesn't create a penalty beyond the tax consequence — that year's shortfall simply becomes taxable income, effectively taxing that specific portion of the original withdrawal after the fact.
An FHSA withdrawal has none of this complexity: once the funds are used for a qualifying home purchase, there's nothing further to track, repay, or report related to that withdrawal.
Tips
- If you're planning to use the Home Buyers' Plan, budget for the annual repayment starting the second year after your withdrawal — it's easy to forget about once you're settled into a new home and focused on mortgage payments.
- You can repay more than the minimum required HBP installment in any year, which reduces the remaining required repayments — useful if you have extra cash in some years.
- Combining an FHSA with the Home Buyers' Plan lets a household potentially access both a $40,000+ (with growth) FHSA balance and up to $60,000 through HBP, significantly increasing total tax-advantaged funds toward a down payment.
- The FHSA's lack of a repayment obligation makes it generally more valuable for the specific home-purchase use case, but RRSP contribution room used for other retirement savings purposes still has its own separate value beyond just the Home Buyers' Plan.
- Two first-time buyers purchasing together can each use their own FHSA and HBP room, potentially doubling the combined household total for a down payment.
Common Mistakes
- Forgetting that HBP withdrawals must be repaid, and being surprised by the annual repayment requirement starting two years later.
- Not repaying the required HBP installment and being surprised by the resulting taxable income in that year's tax return.
- Confusing the FHSA's $40,000 lifetime contribution limit with a withdrawal limit — the account balance (including growth) can exceed $40,000 and still be fully withdrawable tax-free.
- Assuming the Home Buyers' Plan withdrawal is free of any future obligation, when it specifically requires repayment unlike an FHSA withdrawal.
- Not considering that FHSA and HBP can be used together for the same home purchase, potentially leaving tax-advantaged room unused.
Frequently Asked Questions
What is the Home Buyers' Plan?
A CRA program that lets first-time home buyers withdraw up to $60,000 from their RRSP tax-free toward a qualifying home purchase, on the condition that the withdrawn amount is repaid back into the RRSP over the following 15 years.
What happens if I don't repay my Home Buyers' Plan installment in a given year?
That year's required repayment amount is added to your taxable income for that tax year instead, effectively taxing that specific portion of your original withdrawal after the fact.
Does an FHSA withdrawal need to be repaid?
No — an FHSA withdrawal for a qualifying first home purchase is permanently tax-free with no repayment obligation of any kind, which is the key structural difference from the Home Buyers' Plan.
What is the FHSA's withdrawal limit?
There isn't a specific dollar withdrawal limit tied to the account balance — the $40,000 figure is a lifetime contribution limit. If your FHSA balance grows beyond $40,000 through investment returns, the full balance is still withdrawable tax-free for a qualifying purchase.
Can I use both FHSA and the Home Buyers' Plan for the same home purchase?
Yes — many first-time buyers combine both, potentially accessing a $40,000+ (with growth) FHSA balance alongside up to $60,000 through the Home Buyers' Plan for a single purchase.
When does Home Buyers' Plan repayment start?
In the second calendar year after the year you made your withdrawal — for example, a 2026 withdrawal would have its first required repayment due for the 2028 tax year.
Can I repay my Home Buyers' Plan balance faster than the minimum?
Yes — you can repay more than the required annual minimum at any time, which reduces the total remaining repayment schedule.
Does the Home Buyers' Plan repayment count as a new RRSP contribution for tax purposes?
No — HBP repayments are specifically designated as repaying the withdrawn amount and don't generate a new tax deduction, unlike a regular RRSP contribution.
Is FHSA always better than the Home Buyers' Plan for a first home purchase?
For the specific home-purchase use case, the FHSA's lack of a repayment obligation is a genuine structural advantage — but RRSP contribution room also has broader retirement-savings value beyond just the Home Buyers' Plan, so the full picture depends on your overall savings strategy.
Can both partners in a couple use the Home Buyers' Plan and FHSA for the same purchase?
Yes, if both are first-time buyers — each person has their own separate FHSA and HBP room, which can combine toward the same home purchase.
Does this calculator account for investment growth during the saving period?
No — this calculator focuses specifically on the withdrawal and repayment mechanics. See the TFSA Growth Calculator or RRSP Contribution Tax Savings Calculator for growth and contribution-side projections.
Can I share this FHSA vs RRSP comparison as an image?
Yes — tap Share and, on supported devices, your result is shared as a branded image card, not just a text link.
References
Important Information
This calculator provides estimates for informational purposes only and is not tax or financial advice. Uses confirmed current CRA Home Buyers' Plan withdrawal limit ($60,000) and repayment period (15 years), and confirmed FHSA lifetime contribution limit ($40,000); does not model investment growth during the saving period or verify home-purchase eligibility for either program. Confirm your specific situation with the CRA or a qualified tax professional.
Last updated: August 2026