Two tools, one home
Limits, not targets. FHSA figures are contributions only; any growth inside the FHSA is on top. The Home Buyers' Plan amount has to already be in your RRSP.
The Home Buyers' Plan
The Home Buyers' Plan (HBP) lets you take up to $60,000 out of your RRSP for a first home without paying tax on the withdrawal. CRA's conditions are close to the FHSA's:
- You're a first-time home buyer (the same four-year look-back).
- You have a written agreement to buy or build a qualifying home.
- You're a resident of Canada when you withdraw.
- You intend to live in the home as your main residence within one year.
- The home is bought or built before October 1 of the year after the withdrawal.
One timing trap: if you contributed to your RRSP in the 89 days before the withdrawal, CRA says that contribution may not be deductible.
Paying it back
- You have up to 15 years to repay the amount to your RRSP.
- Each year's minimum is the balance divided by the years left. Withdraw $60,000 and that's $4,000 a year.
- If you repay less than the minimum in a year, the shortfall is added to your income for that year and taxed.
- Repayments aren't deductible, and they don't use up your RRSP room.
When repayments start: for a first withdrawal made between January 1, 2026 and December 31, 2028, CRA says the 15-year period begins in the fifth year after the withdrawal. A first withdrawal in 2026 means the first repayment year is 2031.
Side by side
| Rule | FHSA | Home Buyers' Plan |
|---|---|---|
| Limit | $40,000 of contributions, plus growth | $60,000 withdrawal |
| Pay it back? | No | Yes, over 15 years |
| If you never buy | Moves to your RRSP | The money simply stays in your RRSP |
| Time limit | 15 years from opening | None for saving; deadlines apply once you withdraw |
Which to fill first depends on your income, your timeline and how much RRSP room you have. The one fixed point is the difference in the table: one of them is a loan from your future self.
Do this before the next lesson
- If a first home is in your plans, write down what you hold today in an FHSA and in RRSPs.
- Work out the HBP repayment you'd face: the amount you'd withdraw divided by 15.
- Ask yourself whether that yearly repayment fits beside a mortgage payment.
You use both an FHSA and the Home Buyers' Plan to buy your first home. Which one do you have to pay back?
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Where this comes from
- Canada Revenue Agency: The Home Buyers' Plan (limit and repayment start; page dated February 17, 2026)
- Canada Revenue Agency: How to participate in the Home Buyers' Plan (conditions; the 89-day rule)
- Canada Revenue Agency: How to repay the amounts withdrawn under the HBP
- Canada Revenue Agency: Tax deductions for FHSA contributions ($40,000 lifetime)