FHSA vs RRSP Home Buyers' Plan — the real difference
Both the FHSA (First Home Savings Account) and the RRSP (via the Home Buyers' Plan) give you a tax deduction the year you contribute — so the upfront refund is identical for the same contribution and tax rate. The difference is entirely about what happens when you withdraw the money to buy your first home.
| Feature | FHSA | RRSP (Home Buyers' Plan) |
|---|---|---|
| Contribution is tax-deductible | Yes | Yes |
| Annual contribution limit | $8,000 | Your full RRSP room |
| Lifetime limit | $40,000 | $60,000 withdrawable via HBP |
| 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 |
| What happens if you skip a repayment | N/A | Shortfall is added to that year's taxable income |
Worked example
You contribute $8,000 at a 30% marginal rate — you get a $2,400 refund either way. Years later, you buy your first home. If that $8,000 grew inside an FHSA, you withdraw it completely tax-free, forever — nothing owed. If it grew inside an RRSP and you withdraw it under the Home Buyers' Plan, it's also tax-free at withdrawal — but you now owe 1/15th of the withdrawn amount back to your RRSP every year for 15 years. Miss a repayment, and that year's shortfall gets added to your income and taxed.
Which should you use first?
Most first-time buyers get the most value by maxing the FHSA's $40,000 lifetime limit first — it's the only one of the two where the money is truly, permanently tax-free with zero strings attached. If you need more than that for your down payment, the RRSP Home Buyers' Plan lets you pull in another $60,000 tax-free at withdrawal — you're just committing to a 15-year repayment plan on that portion. The two can be used together.
Frequently asked questions
Is FHSA or RRSP better for a first home?
They give the same deduction, but FHSA withdrawals are permanently tax-free with no repayment, while RRSP Home Buyers' Plan withdrawals must be repaid over 15 years. Most buyers should max the FHSA first.
What's the FHSA limit for 2026?
$8,000/year, $40,000 lifetime, with up to $8,000 of unused room carrying forward (max $16,000 contributed in any one year).
What's the RRSP Home Buyers' Plan withdrawal limit?
$60,000 per person for 2026, repayable to your RRSP over 15 years — at least 1/15 of the amount each year, or the shortfall is taxed as income that year.
Can I use both?
Yes — they're not mutually exclusive. Many buyers max the FHSA, then use the RRSP HBP for additional funds.
Is this official CRA guidance?
No. Calcova is an independent estimator using published 2026 FHSA and HBP rules. Not tax advice — verify with the CRA or a tax professional.
Related calculators
CPP2 calculator → — see your second additional CPP contribution.
RRSP vs TFSA calculator → — compare for retirement savings, not just a first home.