What is the difference between an FHSA, RRSP and a TFSA?

When considering the First Home Savings Account, there are many questions about how it compares to an RRSP or a TFSA. Since these are all types of savings accounts available to Canadians, it’s important to compare them in order to determine which account will help you achieve your goal of purchasing a home. This infographic goes through the key benefits of each and highlights their differences.

FHSA vs. RRSP vs. TFSA

Contributions are tax-deductible

FHSA: Yes
RRSP: Yes
TFSA: No

Funds inside the account can be invested

FHSA: Yes
RRSP: Yes
TFSA: Yes

Withdrawals are non-taxable if used to buy your first home

FHSA: Yes
RRSP: Yes
TFSA: Yes

Only available to first-time home buyers

FHSA: Yes
RRSP: Yes
TFSA: No

Withdrawals need to be paid back into the account

FHSA: No
RRSP: Yes
TFSA: No

Unused annual contributions carry forward to the next year

FHSA: Yes
RRSP: Yes
TFSA: Yes

Contribution amount is based on income

FHSA: No
RRSP: Yes
TFSA: No