Two federal programs let first-time buyers put tax-advantaged savings toward a home: the First Home Savings Account (FHSA) and the RRSP Home Buyers’ Plan (HBP). The CRA allows both for the same home, as long as you meet the conditions of each. Figures checked October 3, 2026.
The FHSA in short
- $8,000 of contribution room a year, $40,000 over your lifetime.
- Unused room carries forward, up to $8,000.
- Contributions are generally deductible, like an RRSP, and a qualifying withdrawal for your first home is tax-free, like a TFSA.
- Eligibility: resident of Canada, 18 or older, and no home owned and lived in by you or your spouse in the current year or the previous four calendar years.
The Home Buyers’ Plan in short
- Withdraw up to $60,000 from your RRSPs for a qualifying home.
- Repay it to your RRSP over 15 years.
- For a first withdrawal between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the withdrawal, not the second.
The key difference
The FHSA withdrawal never has to be paid back. The HBP is a loan from your own RRSP: you repay it, and any amount you don’t repay in a given year is added to your income for that year.
Questions to take to your advisor
- Should I open an FHSA now, even if I’m not buying for a few years? Room only starts building once the account is open.
- Does it make sense to move RRSP money into my FHSA? Transfers are allowed but are not deductible.
- If we’re buying as a couple, can each of us use our own FHSA and HBP?
Next: the full first-time buyer guide, including the Ontario land transfer tax refund.
Sources (official pages, checked October 3, 2026)
- CRA – First Home Savings Account (FHSA)
- CRA – Participating in your FHSAs ($8,000/yr, $40,000 lifetime, carry-forward)
- CRA – Opening your FHSA (eligibility)
- CRA – Withdrawals from your FHSAs (tax-free qualifying withdrawal; FHSA + HBP on the same home)
- CRA – The Home Buyers’ Plan ($60,000 limit; repayment deferral for 2026-2028 withdrawals)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.