Hidden closing costs every first-time Canadian homebuyer forgets
The down payment is only the start. From double land transfer tax in Toronto to title insurance and adjustments, here’s the 1.5–4% of the price most buyers don’t budget for.
5 min readSaving
Canadian FHSA calculator
See how the First Home Savings Account grows your down payment: an upfront tax deduction plus tax-free growth and withdrawal for a first home.
Your FHSA projection
Enter your numbers — the estimate updates instantly.
Your contributions
Maximum $8,000 per year.
An FHSA can stay open for up to 15 years.
Your situation
Your combined federal-plus-provincial rate on the next dollar of income.
Your results
Tax savings plus projected growth.
Projected account value
$0
Total contributions
$0
Tax savings
$0
Investment growth
Lifetime room used
Qualifying withdrawal tax$0
Planning estimate only. Assumes one contribution per year and steady growth. Qualifying FHSA withdrawals for a first home are tax-free; other withdrawals are taxable. Confirm eligibility with a financial professional.
Keep more of your gains working.
Open an FHSA with low fees and start building your tax-free first-home down payment today.
Start investing with WealthsimpleHow it works
- Contribute up to $8,000 per year ($40,000 lifetime). Every dollar contributed reduces your taxable income at your marginal rate — that is your upfront tax saving.
- Invest the contributions inside the FHSA. Growth is tax-sheltered while it stays in the account.
- Withdraw tax-free for a qualifying first home purchase. The calculator projects your account value from your annual contributions and expected growth.
FHSA limits at a glance
| Rule | Limit |
|---|---|
| Annual contribution limit | $8,000 |
| Lifetime contribution limit | $40,000 |
| Maximum account lifespan | 15 years or age 71 |
| Qualifying first-home withdrawal | Tax-free |
| Non-qualifying withdrawal | Taxable as income |
Frequently asked questions
Who can open an FHSA?
Canadian residents aged 18 to 71 who are first-time home buyers — meaning neither you nor your spouse owned a qualifying home in the current year or the previous four calendar years.
How much can I contribute to an FHSA?
Up to $8,000 per year, with a $40,000 lifetime limit. Unused annual contribution room carries forward to future years, subject to the lifetime cap.
Is the FHSA better than the RRSP Home Buyers’ Plan?
For most first-time buyers, yes. FHSA contributions are deductible like RRSP contributions, but a qualifying FHSA withdrawal is never repaid — the Home Buyers’ Plan must generally be repaid over 15 years.
What happens if I never buy a home?
You can transfer FHSA funds to your RRSP or RRIF tax-free without using RRSP contribution room, or withdraw them as taxable income. The FHSA must be closed after 15 years or by age 71, whichever comes first.
When is the FHSA contribution deadline?
December 31 of the calendar year. Unlike the RRSP, there is no 60-day extension — contributions must be made within the year to be deducted for that year.
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