Tax-free accounts
Can You Use the FHSA and Home Buyers’ Plan Together in Canada?
Yes. First-time buyers can withdraw from an FHSA and use the RRSP Home Buyers’ Plan for the same home, which can put up to $100,000 per person toward a down payment, plus FHSA growth.
Can I use my FHSA and the Home Buyers’ Plan for the same home?
Yes. The CRA says you can make an RRSP withdrawal under the Home Buyers’ Plan and a qualifying FHSA withdrawal for the same qualifying home, as long as you meet the conditions of each at the time of each withdrawal.
Each program has its own definition of a first-time buyer and its own rules, so check both before you sign an agreement to buy.
Put it into practiceFHSA rules explainedHow much can I take out with both?
Up to $40,000 of FHSA contributions plus whatever they have earned, and up to $60,000 from your RRSP. A couple who both qualify can each use both, for up to $200,000 before FHSA growth.
| FHSA | Home Buyers’ Plan (RRSP) | |
|---|---|---|
| Maximum | $40,000 lifetime contributions, plus growth | $60,000 withdrawal |
| Contributions | $8,000 a year; up to $8,000 of unused room carries forward | Within your RRSP deduction limit |
| Tax on contributions | Deductible | Deductible |
| Withdrawal for a home | Tax-free, never repaid | Tax-free, but must be repaid |
| Repayment | None | Over 15 years, or the unpaid amount is added to income |
Do I have to repay the Home Buyers’ Plan?
Yes. HBP withdrawals are repaid to your RRSP over 15 years; any yearly amount you do not repay is added to your income for that year. For first withdrawals made from 2022 through 2028, repayments start in the fifth year after the year of the first withdrawal.
FHSA withdrawals for a qualifying home never have to be repaid, which is why many buyers use the FHSA first and the HBP for the rest.
Which should I use first?
If you are saving now, fill the FHSA first: you get the same deduction as an RRSP contribution and never have to repay it. Open it early, because room only starts building once the account exists ($8,000 a year, up to $40,000).
Money you already have in an RRSP can be used through the Home Buyers’ Plan. Some people also transfer RRSP savings into an FHSA, which uses FHSA room but does not give a new deduction.
What timing rules should I watch?
RRSP contributions must stay in the RRSP for at least 90 days before you can withdraw them under the Home Buyers’ Plan and still deduct them, and both programs require you to intend to live in the home as your principal residence.
Check the CRA pages for each program, or ask your financial institution, before making the withdrawals.
Keep reading
Tax-free accountsFHSA Rules Explained: First Home Savings Account in CanadaThe FHSA lets first-time buyers save $8,000 a year ($40,000 lifetime) with a tax deduction and tax-free withdrawals for a home. Who qualifies and how to use it with the RRSP Home Buyers’ Plan.
Tax-free accountsRRSP Contribution Limit and Deadline 2026The 2026 RRSP limit is 18% of your 2025 earned income, up to $33,810. The deadline to contribute for the 2026 tax year is March 1, 2027.- MortgagesFirst-Time Home Buyer Programs in CanadaThe federal programs that help first-time buyers: the FHSA, the Home Buyers’ Plan, the home buyers’ amount, the GST rebate on new homes and 30-year amortizations.
- Tax-free accountsWhat Happens If You Overcontribute to Your RRSP in Canada?You can go up to $2,000 over your RRSP deduction limit without penalty. Above that, the CRA charges 1% a month on the excess until you withdraw it or new room absorbs it.
Official sources and further reading
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