TFSA 2027 Limit and Saving for a Home: TFSA vs FHSA vs RRSP

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — Where the 2027 TFSA limit stands, how much room you have, and how the TFSA, FHSA and RRSP compare for saving a GTA down payment.

This guide is for people in Toronto and the GTA who are saving for a home and wondering which account to use in 2027: a TFSA, an FHSA or an RRSP. You will get the latest TFSA limit and how the 2027 number is set, your likely total room, and a side-by-side comparison of all three for a down payment.

What is the TFSA contribution limit for 2027?

As of 10 November 2026, CRA has not yet posted the 2027 TFSA limit. Its official limits table ends at 2026, when the limit was $7,000. I will not guess the 2027 figure, because it comes from a formula, not a policy choice.

Here is how it is set. Section 207.01 of the Income Tax Act defines the TFSA dollar limit for each year after 2015 as $5,000, adjusted for inflation for every year since 2009, then rounded to the nearest $500. Because of the rounding, the limit only moves when inflation pushes the indexed amount past the next $250 mark. That is why it stayed at $7,000 for 2024, 2025 and 2026. Check CRA’s limits page before you contribute in January 2027, and use the new figure once it appears.

How much TFSA room do you have going into 2027?

If you were 18 or older and living in Canada in 2009, and you have never contributed, your total TFSA room for 2026 is $109,000. The 2027 limit will be added to that on 1 January 2027. CRA says room starts building in the year you turn 18, and only for years you are a resident of Canada.

Source: CRA, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE page, as of 10 November 2026. Running totals are my sums for someone eligible since 2009 who has never contributed.

If you turned 18 later, start counting from that year. Someone who turned 18 in 2015 has $78,000 of room by 2026, and someone who turned 18 in 2020 has $45,500. Your real number also depends on what you have put in and taken out. CRA says money you withdraw is added back to your room on 1 January of the next year, not right away.

How do the TFSA, FHSA and RRSP compare for saving a down payment?

All three can hold a down payment, but they work very differently. This is how they line up for a 2027 buyer.

Source: CRA pages on the TFSA, FHSA and Home Buyers’ Plan, and CRA’s RRSP and TFSA limits table, as of November 2026.

Is the FHSA better than a TFSA for buying a first home?

For a first-time buyer, usually yes. The FHSA gives you a tax deduction when you put money in, like an RRSP, and a tax-free withdrawal when you buy, like a TFSA. The TFSA only gives you the second half.

Here is a simple way to see it. If you are in a 30% tax bracket and put $8,000 into an FHSA, the deduction can cut your tax by about $2,400. Put the same $8,000 in a TFSA and there is no deduction. Both grow tax-free and both come out tax-free for a qualifying home. The difference is the refund, which you can save toward closing costs.

CRA says FHSA room only starts in the year you open your first FHSA. If you have not opened one, doing it before 31 December 2026 gives you $8,000 of room for 2026 that carries into 2027. My FHSA guide for Toronto buyers covers the rules in detail.

When does a TFSA make more sense for a home?

The TFSA wins in a few common situations:

• You are not a first-time buyer. If you lived in a home you owned in the last four years, you cannot open an FHSA or use the HBP. The TFSA is open to you.
• Your FHSA is full. Once you have used your $8,000 for the year, or reached the $40,000 lifetime cap, extra savings can go into a TFSA.
• You need flexible cash. Closing costs, moving, a deposit before your FHSA money is released, or an emergency fund after you move in. TFSA money can be taken out for any reason, at any time.
• Your income is low right now. An FHSA or RRSP deduction is worth less in a low tax bracket. You can still contribute to an FHSA and carry the deduction forward, but some people prefer the simplicity of a TFSA.
• You are not sure you will buy. A TFSA never has to be closed or moved. An FHSA must be wound up within 15 years of opening.

When does the RRSP Home Buyers’ Plan make sense?

When you already have RRSP savings, or when your income is high enough that the RRSP deduction is worth a lot. You can withdraw up to $60,000 per person in 2027, and CRA says you can combine it with an FHSA withdrawal for the same home. The catch is repayment. For a first withdrawal in 2027, you repay at least one-fifteenth a year starting in 2032, and any shortfall is added to your income.

Watch the timing rule too. CRA says RRSP contributions made in the 89 days before an HBP withdrawal may not be deductible. My guide to the FHSA vs the Home Buyers’ Plan explains which to use first, and my RRSP Home Buyers’ Plan guide covers the full rules.

In what order should you save for a GTA home in 2027?

For most first-time buyers I work with, this order makes sense:

1. FHSA first, up to your 2027 room: $8,000, or $16,000 if you opened an account in 2026 and did not use the room.
2. TFSA next, for closing costs and an emergency fund you can reach any time.
3. RRSP and the HBP if you already have RRSP savings or a high income, keeping the 89-day rule in mind.

Here is an example. A single first-time buyer who opened an FHSA in 2026 but did not contribute could put $16,000 in during 2027 and claim the deduction. If that buyer also has $30,000 in an RRSP from work, the HBP could release it for the same purchase, as long as the money has been in the plan more than 89 days. That is $46,000 before growth, which covers the minimum down payment on a home up to $710,000, with TFSA savings set aside for closing costs.

A couple can double each step. Two FHSAs and two HBP withdrawals allow up to $200,000 toward the same home, plus whatever both partners hold in TFSAs. For a sense of what that buys, see how much home you can afford in the GTA.

What to do next

1. Log in to your CRA account and check your TFSA room, FHSA room and RRSP deduction limit.
2. Open an FHSA before 31 December 2026 if you qualify as a first-time buyer.
3. Check CRA’s limits page for the 2027 TFSA number before you contribute in January.
4. Decide how much of your savings is the down payment and how much is closing costs, and match each to the right account.
5. Book a call with me to turn your savings plan into a target price for 2027.

Frequently asked questions

Sources

• CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE
• Income Tax Act, section 207.01 (TFSA dollar limit and indexing)
• CRA: Calculate your TFSA contribution room
• CRA: Before you contribute to a TFSA (room from age 18, over-contributions)
• CRA: Participating in your FHSAs (contribution room)
• CRA: Withdrawals and transfers out of your FHSAs
• CRA: What is the Home Buyers’ Plan
• CRA: How to participate in the Home Buyers’ Plan (89-day rule)

Related reading

• The Bank of Canada Raised Rates: What It Means for GTA Buyers, Sellers and Owners
• Variable-Rate Mortgage After the Hike: How Much Your Payment Changes
• Should I Lock In My Variable Mortgage Before 2027?
• Mortgage Renewal in 2027 After the Rate Hike: Your Options in Ontario