FHSA + RRSP Home Buyers' Plan: The Complete Guide

First Home Savings Account (FHSA)

The FHSA is the best savings account ever created for Canadian first-time buyers. It combines RRSP tax deductions with TFSA tax-free withdrawals.

• Contribute up to $8,000/year (lifetime max $40,000 per person)
• Contributions are tax-deductible — saves you $2,000–$4,000/yr in taxes at a 25–50% marginal rate
• Withdrawals for a qualifying first home are completely tax-free
• Investment growth inside is tax-free
• Unused room carries forward (miss a year? You can contribute $16K the next year)

RRSP Home Buyers' Plan (HBP)

• Withdraw up to $60,000 per person from your RRSP tax-free
• Funds must have been in RRSP for at least 90 days before withdrawal
• Repay over 15 years starting 2 years after purchase

Stacking Both: Couple Example

Program	Per Person	Per Couple
FHSA (max)	$40,000	$80,000
RRSP HBP (max)	$60,000	$120,000
Total Combined	$100,000	$200,000

Start Now — Even Years Before Buying

Open your FHSA immediately. Even if you're 5 years away from buying, you start accumulating $8K/year of contribution room now. You get the tax deduction every year you contribute, regardless of when you buy.

⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.