The First Home Savings Account (FHSA — CELIAPP in French) and the Home Buyers' Plan (HBP) are often presented as two options you have to choose between. They aren't: both can be used to buy the same home. Combined well, they let you build a sizeable down payment with a tax advantage up front. You just have to use them in the right order.
FHSA + HBP calculator
ToolHow much you can put toward your down payment by combining the two plans.
For a couple, the calculation assumes both spouses have similar amounts. The FHSA doesn't have to be repaid; the HBP does. Simplified assumptions: carried-forward unused room isn't modelled.
Yes, you can use the FHSA and the HBP together
The CRA lets you use both plans to buy the same qualifying home, as long as you meet the conditions of each. The limits apply per person:
- FHSA: $8,000 in contributions per year, $40,000 lifetime;
- HBP: up to $60,000 withdrawn from your RRSP;
- that's up to $100,000 per person, and $200,000 for a couple where both spouses qualify, not counting growth inside the FHSA.
For both the FHSA and the HBP, you must be a first-time buyer: you can't have lived, as your principal residence, in a home owned by you or your current spouse or common-law partner in the current year or the previous 4 calendar years.
FHSA vs HBP: side-by-side comparison
| FHSA | HBP | |
|---|---|---|
| Limit | $8,000 per year, $40,000 lifetime (unused room carried forward: $8,000 maximum) | $60,000 per person (previously $35,000) |
| Repayment | None | Over 15 years, about 1/15 per year; a missed payment is added to your taxable income |
| Deduction | Contributions are deductible (federally and in Quebec), and the deduction can be carried forward; a transfer from an RRSP isn't deductible | No new deduction: you're withdrawing money you already contributed to your RRSP |
| Withdrawal | Tax-free if it's a qualifying withdrawal (form RC725) | Tax-free (form T1036) |
| Purchase deadline | Acquire the home before October 1 of the year after the withdrawal | Buy or build before October 1 of the year after the first withdrawal |
| Closing the account | By December 31 of the year of the earliest of: the account's 15th anniversary, age 71, or the year after the first qualifying withdrawal | No separate account: the HBP is a withdrawal from your RRSP, repaid over 15 years |
Repaying the HBP: the schedule
The FHSA doesn't have to be repaid. The HBP does: about 1/15 of the amount withdrawn each year, for 15 years. Repayment normally starts in the second year after the year of the withdrawal. For withdrawals made between January 1, 2022 and December 31, 2025, the start is pushed back to the fifth year after the year of the first withdrawal.
If you don't pay the required minimum in a given year, the missing portion is added to your taxable income for that year. It isn't lost, but it's taxed and can no longer be repaid to the HBP. Everything about the HBP →
Using your RRSP and FHSA to buy a house: the order of operations
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As early as possible
Open your FHSA, even with a small amount
Contribution room only starts building up once you open your first account. Opening it early, even without putting much in, lets you carry forward up to $8,000 of unused room, for a maximum of $16,000 in a single year. Understand the FHSA →
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Every year before buying
Contribute to the FHSA, then to your RRSP
FHSA contributions are deductible, and a qualifying withdrawal doesn't have to be repaid. If you already have an RRSP, you can transfer part of it into the FHSA, but that transfer isn't deductible, since the money already was.
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At least 90 days before the HBP withdrawal
Respect the 90-day rule
An RRSP contribution made in the 89 days before the HBP withdrawal may not be deductible. Plan your last RRSP contributions accordingly.
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Once the purchase agreement is signed
Make the withdrawals
The FHSA withdrawal is made with form RC725 and requires a written agreement to buy or build; the HBP withdrawal, with form T1036 given to your financial institution. Leave enough time for the funds to be available at the notary's office.
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After the purchase
Plan for HBP repayments
Build the annual HBP repayment into your homeowner budget right away.
Not enough? Other sources can be added
The FHSA and HBP can be combined with your savings and with a family gift backed by a gift letter. To find out the minimum you need for the price you're targeting, use the down payment calculator. Before you make your withdrawals, check your plan with your financial institution or a professional, especially if you're buying as a couple or already have RRSPs.
Official sources: First Home Savings Account (CRA), Home Buyers' Plan (CRA), Repaying the HBP (CRA) (in French).
Frequently asked questions
Can I use the FHSA and the HBP at the same time?
Yes. The FHSA and the HBP can both be used to buy the same home, as long as you meet the conditions of each. The limits apply per person, so a couple of first-time buyers can double the amounts.
Do I have to repay the FHSA like the HBP?
No. A qualifying FHSA withdrawal doesn't have to be repaid. The HBP, on the other hand, must be repaid over 15 years, or the missing portion is added to your taxable income.
How much can I withdraw from the FHSA and HBP to buy a house?
Up to $40,000 in FHSA contributions (plus growth) and up to $60,000 under the HBP, per person. For an eligible couple, the total can reach $200,000 before investment growth.
