Theory is useful, but nothing replaces concrete numbers. This page gives you two detailed saving plans — a 2-year sprint for buyers who want to purchase quickly, and a 5-year marathon for those who want to maximize their down payment and buying power. Adapt these to your own income, timeline, and target purchase price — our affordability calculator can help you find your number.
The 2-Year Sprint
Who this is for: Buyers with steady income who want to purchase within 2 years. Target down payment of $50,000 for a home in the $400,000 to $500,000 range.
Assumptions:
- Single buyer earning $80,000/year
- Marginal tax rate: approximately 30%
- FHSA opened at the start of Year 1
- Investments held in high-interest savings or short-term GICs (conservative approach given the short timeline)
Year-by-Year Contributions
| Year | FHSA | RRSP (for HBP) | TFSA (Closing Costs) | Annual Total |
|---|---|---|---|---|
| 1 | $8,000 | $10,000 | $4,000 | $22,000 |
| 2 | $8,000 | $10,000 | $4,000 | $22,000 |
| Total | $16,000 | $20,000 | $8,000 | $44,000 |
Tax Refunds Generated
- Year 1 deductions: $18,000 (FHSA + RRSP) x 30% = $5,400 refund
- Year 2 deductions: $18,000 x 30% = $5,400 refund
- Total tax refunds over 2 years: $10,800
Where You End Up
| Source | Amount |
|---|---|
| FHSA (for down payment) | $16,000 |
| RRSP via HBP (for down payment) | $20,000 |
| TFSA (for closing costs) | $8,000 |
| Tax refunds (reinvested in TFSA) | $10,800 |
| Investment growth (est. 3.5% on avg) | ~$1,500 |
| Total available | ~$56,300 |
That is $36,000 for your down payment (FHSA + HBP), plus $18,800 in your TFSA for closing costs and reserves, plus a small amount of growth. On a $450,000 home, your $36,000 down payment is 8% — above the minimum 5%, which means lower CMHC insurance premiums compared to the minimum.
Monthly Savings Required
To save $22,000/year, you need to set aside approximately $1,833/month. On an $80,000 salary (about $5,100/month take-home after tax), that is about 36% of your take-home pay. This is aggressive but achievable if you are committed, especially if you are currently renting affordably and can keep living expenses low.
After accounting for the $450/month tax refund benefit (spread monthly), your effective savings rate drops to about $1,383/month — roughly 27% of take-home pay, which is more comfortable.
The 5-Year Marathon
Who this is for: Buyers who want to maximize their savings and purchase power, or who are targeting a more expensive home. This plan is ideal for couples.
Assumptions:
- Couple, each earning $80,000/year ($160,000 combined)
- Each person’s marginal tax rate: approximately 30%
- Both open FHSAs at the start of Year 1
- Investments in a balanced portfolio of index ETFs (appropriate for a 5-year timeline)
Year-by-Year Contributions (Per Person)
| Year | FHSA | RRSP (for HBP) | TFSA | Annual Total (Each) |
|---|---|---|---|---|
| 1 | $8,000 | $12,000 | $5,000 | $25,000 |
| 2 | $8,000 | $12,000 | $5,000 | $25,000 |
| 3 | $8,000 | $12,000 | $5,000 | $25,000 |
| 4 | $8,000 | $12,000 | $5,000 | $25,000 |
| 5 | $8,000 | $12,000 | $5,000 | $25,000 |
| Total (Each) | $40,000 | $60,000 | $25,000 | $125,000 |
Combined Totals (Couple)
| Account | Person 1 | Person 2 | Combined |
|---|---|---|---|
| FHSA | $40,000 | $40,000 | $80,000 |
| RRSP (HBP) | $60,000 | $60,000 | $120,000 |
| TFSA | $25,000 | $25,000 | $50,000 |
| Total contributions | $125,000 | $125,000 | $250,000 |
Tax Refunds Generated
- Annual deductions per person: $20,000 (FHSA + RRSP) x 30% = $6,000/year
- Combined annual refund: $12,000/year
- Total tax refunds over 5 years: $60,000
Investment Growth (Estimated at 5% Average Annual Return)
| Account | Contributions | Est. Growth | End Balance |
|---|---|---|---|
| FHSAs (combined) | $80,000 | ~$11,000 | ~$91,000 |
| RRSPs (combined) | $120,000 | ~$17,000 | ~$137,000 |
| TFSAs (combined) | $50,000 | ~$7,000 | ~$57,000 |
| Tax refunds (reinvested) | $60,000 | ~$5,000 | ~$65,000 |
| Grand total | $310,000 | ~$40,000 | ~$350,000 |
Where You End Up
| Purpose | Source | Amount |
|---|---|---|
| Down payment | FHSAs + HBP | ~$228,000 |
| Closing costs | TFSAs | ~$57,000 |
| Reserves and flexibility | Reinvested tax refunds | ~$65,000 |
| Total available | ~$350,000 |
With $228,000 available for a down payment, this couple could put 20% down on a home worth up to $1,140,000 — completely avoiding CMHC mortgage insurance. Or they could put 20% down on a $700,000 home ($140,000) and keep nearly $90,000 as reserves, closing costs, and renovations.
Adapting These Plans to Your Situation
If You Can Save Less
Not everyone can set aside $22,000 or $50,000 per year. Here is what a more modest plan looks like:
Single buyer, $55,000 income, saving $10,000/year over 4 years:
| Year | FHSA | RRSP (HBP) | TFSA | Total |
|---|---|---|---|---|
| 1 | $5,000 | $3,000 | $2,000 | $10,000 |
| 2 | $5,000 | $3,000 | $2,000 | $10,000 |
| 3 | $5,000 | $3,000 | $2,000 | $10,000 |
| 4 | $5,000 | $3,000 | $2,000 | $10,000 |
| Total | $20,000 | $12,000 | $8,000 | $40,000 |
- Tax refunds (at ~25% rate): approximately $8,000 over 4 years
- Total available: approximately $49,000 (including growth and refunds)
That is enough for a 5% down payment on a home up to $500,000, plus closing costs and a small reserve. Even modest contributions to the right accounts make a substantial difference.
If You Got a Late Start
If you are opening your FHSA for the first time in 2026 and want to buy in 2028 (2 years), you still benefit:
- Year 1 FHSA contribution: $8,000
- Year 2 FHSA contribution: up to $16,000 (if you have $8,000 carry-forward from Year 1)
- Even with just 2 years, you could have $24,000 in your FHSA, generating approximately $7,200 in tax savings at a 30% rate
If You Receive a Lump Sum
Received an inheritance, bonus, or gift? Here is how to deploy it efficiently:
- Max out your FHSA first — up to $16,000 in a single year (if you have carry-forward room)
- Contribute to your RRSP for the HBP — remember the 90-day seasoning rule
- Top up your TFSA for closing costs and reserves
- Do not skip the emergency fund — a lump sum is the perfect time to build or rebuild your financial cushion
Key Principles for Any Timeline
Regardless of your specific plan, these principles apply:
- Open your FHSA now. Even if you contribute $100, you start the contribution room clock and the 15-year usage window.
- Automate your contributions. Set up automatic monthly transfers to each account on payday. You cannot spend what you never see.
- Match your investments to your timeline. Short timeline = safe investments. Long timeline = growth investments.
- Reinvest your tax refunds. The refunds from FHSA and RRSP contributions are a powerful accelerator — do not treat them as spending money.
- Review and adjust annually. Life changes. Check your progress each year and adjust contributions if your income changes, your timeline shifts, or your target purchase price evolves.
Sources: CRA — First Home Savings Account · CRA — Home Buyers’ Plan
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