One of the key features of the FHSA is its annual tax-deductible contribution limit of $8,000, with a maximum lifetime contribution of $40,000 towards the purchase of a new home. This limit ensures that contributors can maximize their tax benefits while systematically building their down payment fund. The First Home Savings Account calculator helps individuals understand how different contribution levels and investment returns can impact their savings growth over time, empowering them to make informed financial decisions aligned with their home buying timeline and budget.

Combining Registered Plans
The synergy between the First Home Savings Account and the Home Buyers’ Plan (HBP) provides additional flexibility for prospective home buyers. The HBP allows individuals to withdraw funds from their RRSPs to finance a down payment, complementing the savings accumulated in the FHSA. Combining these two savings strategies enables individuals to accelerate their savings efforts and potentially qualify for a larger down payment, thereby enhancing their purchasing power and financial readiness for homeownership. By leveraging both plans strategically, first-time home buyers can navigate the complexities of real estate investment with confidence and fiscal prudence.