First-Time BuyersJune 22, 2026 · 7 min read
FHSA + RRSP Home Buyers' Plan: The Complete Guide
Stack both programs to access up to $200K tax-free per couple for your first home down payment.
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.
Why the FHSA is Superior for Home Buying
The FHSA requires no repayment — it's a true grant of permanently tax-sheltered savings. The HBP requires repayment over 15 years. Both are tax deductible to contribute. The HBP has a higher limit ($60,000 vs $40,000). Use both simultaneously for maximum benefit.
Optimal Stacking Strategy
- Open FHSAs immediately — $8,000/person per year, unused room carries forward
- Build RRSP to $60,000+ (funds must sit 90 days before HBP withdrawal)
- At purchase: $40,000/person FHSA (no repayment) + $60,000/person HBP (repay over 15 years) = $200,000/couple
FHSA Investment Strategy by Timeline
- 5+ years: Growth ETFs (XEQT, VEQT)
- 2–3 years: Balanced 50/50 stocks and bonds/GICs
- Under 2 years: GICs or high-interest savings — protect the capital
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Amrinder Bala, MBA, P.Eng.
Senior Consultant, CGI Inc. · Founder, Canada Mortgage Rates · Winnipeg, Manitoba
Amrinder is a Winnipeg-based engineer and MBA who built canadamortgagerates.net to give Canadian homebuyers a single, unbiased platform covering every aspect of the home buying process — from mortgage rates and calculators to first-time buyer programs and professional connections.
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