First home buyers · Canada
FHSA vs RRSP vs TFSA — pit the three head-to-head.
Three tax-shelters. Three different rules. Plug in your income, contribution and timeline once — we’ll run the same dollar amount through all three and tell you which actually leaves you with the most money for your first home.
BEST
For your situation, — leaves you with the most money.
FHSA
First Home Savings Account
C$—
net to your hand
Total contributedC$—
Investment growth+C$—
Tax refunds+C$—
Tax on withdrawalC$0
Total in handC$—
✓Contributions deductible against income
✓Growth is fully tax-sheltered
✓Withdrawals for first home are tax-free
!Must be used for a home within 15 yrs (or transfer to RRSP)
RRSP
Registered Retirement Savings Plan
C$—
net to your hand
Total contributedC$—
Investment growth+C$—
Tax refunds+C$—
Tax on withdrawal−C$—
Total in handC$—
✓Contributions deductible against income
✓Up to $60k tax-free under HBP for first home
!HBP withdrawal must be repaid over 15 yrs
✗Retirement withdrawals taxed at your future MTR
TFSA
Tax-Free Savings Account
C$—
net to your hand
Total contributedC$—
Investment growth+C$—
Tax refundsnone
Tax on withdrawalC$0
Total in handC$—
✗No tax deduction on contributions
✓Growth is fully tax-sheltered
✓Withdrawals always tax-free, for anything
✓Withdrawn room comes back next calendar year
Net in your hand — same contribution applied to each
FHSAdeduct + tax-free out
RRSPdeduct + taxed out
TFSAno deduction, tax-free
// note Estimate only — uses combined federal + provincial top-of-bracket MTRs (2024) for the auto rate. RRSP room is capped at 18% of prior-year earned income, max C$31,560 (2024). TFSA room is C$7,000/yr (2024). RRSP withdrawal under HBP returns full balance tax-free if repaid; otherwise the retirement scenario assumes full ordinary-income tax at the chosen future MTR. FHSA + HBP can be combined for the same home purchase.