In short
The Home Buyers' Plan (RRSP withdrawal up to $60,000 since April 2024) and the FHSA (lifetime contributions of $40,000, tax-free withdrawal) stack for the same purchase: up to $100,000 of tax shelter per person, $200,000 for a couple. On a $500,000 home, a couple at the caps covers the 20% down payment ($100,000) twice over — enough to avoid the mortgage insurance premium entirely. The only real constraint: FHSA room ($8,000/yr) only accrues from the account's opening.
The FHSA: the best of both worlds, but the clock matters
The First Home Savings Account is the most advantageous plan ever offered to Canadian first-time buyers: contributions are deductible from your income, like an RRSP — $8,000 contributed at a 37% marginal rate is about $2,960 of tax back — and the withdrawal for the purchase is entirely tax-free, like a TFSA, returns included. With nothing to repay, ever.
The constraint is the clock: contribution room — $8,000 per year, carry-forward capped at $8,000, lifetime limit of $40,000 — only starts accruing once the account is open. It therefore takes at least five calendar years to reach the cap. The best advice on this page fits on one line: open the FHSA now, even with $100, to start the meter.
The HBP: $60,000 — but it is a loan to yourself
The Home Buyers' Plan lets you withdraw up to $60,000 per person from your RRSP with no immediate tax (the cap rose from $35,000 in April 2024). The nuance too many buyers forget: the HBP is a loan to yourself. The amount is repaid to the RRSP over 15 years, and every missed instalment is added to that year's taxable income. On a $60,000 withdrawal, that is $4,000 a year to redeposit — to be built into the post-purchase budget, not discovered in April.
Another rule to know in advance: funds must have sat in the RRSP at least 90 days before withdrawal — you cannot HBP yesterday's deposit.
Stacking: the least-known fact — and the most lucrative
Since the FHSA's creation in 2023, nothing forces you to choose: for the same property, an eligible person can use the HBP up to $60,000 and empty their FHSA. Per person, that is up to $100,000 of capital built tax-sheltered; for a couple where both spouses qualify, $200,000 — plus the returns accumulated inside the FHSAs.
Mapped onto our example of a $500,000 home: the 20% down payment — the one that entirely avoids the mortgage insurance premium — is $100,000. One single person at both plans' caps covers it exactly; a couple covers it twice. The bottleneck is almost never the tax vehicle — it is having started filling them early enough.
Interactive tool
Your "plans" capital vs the target down payment
Enter what each buyer can withdraw: the calculator compares it to the minimum required and to the 20% down payment for your target price.
RRSP capped at $60,000 per person (HBP). For guidance only — eligibility (first-time buyer, the RRSP 90-day rule) and your tax situation must be validated with a professional.
The optimal order — and the deadlines that matter
FHSA first. Same deduction as the RRSP, but a tax-free withdrawal and zero repayment: at equal contribution, it almost always wins. Open early, even small: an account opened five years before the purchase can be full; one opened the year of the purchase caps at $8,000. Budget the HBP repayment (1/15th a year) post-purchase. Coordinate both spouses: each has their own caps — two FHSAs and two HBPs are worth double one, but each must qualify as a first-time buyer.
The right structure depends on your respective incomes, existing RRSPs and buying horizon — it is best built eighteen months ahead, plans and pre-approval together, with a mortgage broker and, for fine-grained tax questions, an accountant. For the other boosts (tax rebates, provincial credits), see our First-time buyer programs pillar.
Frequently asked questions
Can I use the HBP and the FHSA for the same purchase?
Yes. Since the FHSA's creation in 2023, both plans stack for the same property: up to $60,000 of RRSP via the Home Buyers' Plan, plus the full FHSA (lifetime contribution limit of $40,000, plus returns), per eligible person.
What is the difference between the HBP and the FHSA?
The HBP is a loan to yourself: the RRSP withdrawal is not taxed but must be repaid over 15 years, and every missed instalment is added to your taxable income. The FHSA combines the best of both worlds: contributions deductible like an RRSP, tax-free withdrawal like a TFSA — and nothing to repay.
How much can a couple gather with both plans?
Up to $200,000 of tax shelter: 2 × $60,000 of HBP and 2 × $40,000 of FHSA contributions (plus accumulated returns). That is double the 20% down payment on a $500,000 home — enough to avoid the mortgage insurance premium entirely, with room to spare.
In what order should I contribute: FHSA or RRSP?
As a rule, FHSA first: same tax deduction as the RRSP, but the withdrawal is tax-free and there is nothing to repay. Open it early — even with a small amount — because the $8,000 annual room only starts accruing once the account is open. Your tax situation can shift the order: have it validated.
Tax caps and rules in force in 2026 (HBP, FHSA) — they evolve: confirm the parameters with the CRA or a professional.
Go further
Structure your plans eighteen months before buying
FHSA, RRSP, pre-approval: the right plan is built in advance, with a professional who quantifies each option. Payotte verifies only one mortgage broker per sector, on facts.
Find my sector’s verified broker