How the comparison works
- New contributions are made on the selected date in 2026. For each account, the contribution is the smaller of its allocated budget and user-entered room. The combined strategy uses the explicit FHSA percentage you entered; unused room in one account is not silently shifted to another.
- Each option uses the existing balance entered for its account type; balances in accounts not used by that option are excluded. The model assumes the full available FHSA or TFSA balance is withdrawn for the purchase when applicable. It is a one-buyer comparison, not a couple-level allocation tool.
- Existing balances grow from the balance date to the purchase date; new contributions grow from the contribution date. The annual return is an effective annual scenario converted to a monthly rate as
(1 + annual return)^(1/12) - 1. Whole completed months are used; partial months are ignored. - Estimated 2026 tax savings are the shared tax module’s total tax before and after eligible deductions:
max(0, taxBefore - taxAfter). FHSA and RRSP deductions are capped by the separate deduction-room amounts you enter and the taxable income supplied. RRSP contributions are separately capped by the RRSP contribution room you enter. The tax savings are cash outside registered accounts. - Qualifying FHSA withdrawals and TFSA withdrawals are generally not taxable. HBP withdrawals are not taxed when taken if the conditions are met, but repayment is required; unpaid required amounts are generally included in income. TFSA withdrawal room is restored the following calendar year, not immediately. The model does not estimate tax on a non-qualifying FHSA withdrawal.
- Basic withdrawal timing is checked: the written agreement date must be before the withdrawal date; acquisition must occur before October 1 of the year after the first withdrawal year, or no more than 30 days before the withdrawal. If a withdrawal is scheduled after acquisition, it is shown separately and excluded from funds available by acquisition. Dates are checked by calendar day, so same-day ordering cannot be established. Other eligibility and occupancy tests remain your responsibility.
- A requested HBP withdrawal is capped by your entered remaining personal HBP limit, eligible RRSP amount, any modeled RRSP contribution held for at least 90 days before withdrawal, and the $60,000 per-person program maximum. Prior HBP participation and eligibility can affect the limit you enter. The HBP repayment amount is not down-payment money.
HBP repayment timing: For a first HBP withdrawal in 2022 through 2028, CRA’s temporary relief moves the first repayment year to the fifth year after the withdrawal year. Otherwise, the standard start is the second year after withdrawal. The minimum is modeled as one-fifteenth of the withdrawal; any required amount not repaid is generally included in taxable income for that year. Future tax is not estimated.