How to stack the FHSA and the Home Buyers' Plan
Canada gives first-time buyers two tax-advantaged accounts for a down payment, and the smart move is to use them together — not pick one. The FHSA (First Home Savings Account) and the RRSP Home Buyers' Plan (HBP) both give you a tax deduction when you put money in, but they behave very differently when you take the money out. Stack them in the right order and a single buyer can deploy up to $100,000 of tax-advantaged money ($40,000 FHSA + $60,000 HBP); a couple who both qualify can reach $200,000.
| Feature | FHSA | RRSP Home Buyers' Plan |
|---|---|---|
| Contribution is tax-deductible | Yes | Yes |
| How much toward a home | $40,000 lifetime | $60,000 withdrawal |
| Annual contribution limit | $8,000 (up to $16,000 with carry-forward) | Your RRSP room |
| Growth while invested | Tax-free | Tax-deferred |
| Withdrawal for a qualifying home | 100% tax-free | Tax-free at withdrawal |
| Repayment required? | Never | Yes — 1/15 per year for 15 years |
The order that wins: FHSA first
Because the FHSA is tax-free forever with no repayment, it's the stronger dollar — always fill it first. Its only limit is $40,000 lifetime and $8,000 a year (plus up to $8,000 of carried-forward room). Once the FHSA is maxed, the HBP lets you pull up to another $60,000 out of your RRSP tax-free at withdrawal — you're simply committing to repay it, 1/15 each year, over 15 years. Skip a year's repayment and that shortfall is taxed as income, so budget the roughly $4,000/year if you withdraw the full amount.
Worked example
Say you can put $8,000/year into an FHSA at a 30% marginal rate and you buy in 5 years. You'll have contributed $40,000 (the lifetime max), collected about $12,000 in tax refunds along the way, and — with growth — hold roughly $44,000–$45,000 in the FHSA. If you also have $60,000 of RRSP you can tap under the HBP, your total tax-advantaged down payment is over $100,000 — you'd just repay about $4,000 a year to your RRSP for 15 years on the HBP portion.
Frequently asked questions
Should I use the FHSA or the Home Buyers' Plan first?
FHSA first. Same deduction going in, but FHSA withdrawals are permanently tax-free with no repayment, while the HBP must be repaid over 15 years. Max the FHSA, then add the HBP on top.
How much can I stack in total?
Up to $100,000 per person ($40,000 FHSA + $60,000 HBP), or $200,000 for a couple who both qualify as first-time buyers — limited by what you can actually save and your RRSP balance.
Can I use both on the same home?
Yes — they're not mutually exclusive. Many first-time buyers use both for the same purchase.
What's the HBP repayment?
At least 1/15 of what you withdrew, each year for 15 years (about $4,000/yr on a $60,000 withdrawal). Any year you fall short, the shortfall is added to your taxable income.
Is this official CRA guidance?
No. Calcova is an independent estimator using published 2026 FHSA and HBP rules and provincial tax brackets. Not tax advice — verify with the CRA or a tax professional.
Related calculators
FHSA vs RRSP calculator → — compare the two accounts head to head.
RRSP vs TFSA calculator → — for retirement savings, not just a first home.
Mortgage calculator → — turn your down payment into a monthly payment.