How to stack both programs for up to $75,000 tax-free toward your first home
Canada offers two major tax-advantaged programs for first-time buyers — and you can use them simultaneously. Here's exactly how to combine the FHSA and RRSP HBP to maximize your tax-free down payment.
First Home Savings Account (FHSA): contribute up to $8,000/year to a lifetime maximum of $40,000. Contributions are tax-deductible; qualifying withdrawals for a first home purchase are completely tax-free with no repayment obligation. RRSP Home Buyers' Plan (HBP): withdraw up to $35,000 per person ($70,000 per couple) from your RRSP tax-free. Must be repaid over 15 years or the annual shortfall is added to your taxable income. Combined maximum for a single buyer: $40,000 FHSA plus $35,000 RRSP HBP equals $75,000 — all received tax-free, with no repayment on the FHSA portion.
Always maximize the FHSA first — the absence of any repayment obligation makes it strictly superior dollar-for-dollar compared to the RRSP HBP. FHSA contributions are deductible like an RRSP and withdrawals are tax-free like a TFSA — it combines the best feature of each. After maximizing your FHSA, contribute to your RRSP for the HBP. If you already have RRSP savings from previous years, you can use those too — existing RRSP funds just need to have been in the account for 90 days before withdrawal.
FHSA: must be open for at least one full calendar year before making a qualifying withdrawal. RRSP HBP: funds must be in the RRSP for a minimum of 90 days before withdrawal under the HBP. Both: you must be a first-time buyer for both programs — defined as not having owned a principal residence that you lived in at any time during the current year or the preceding 4 calendar years. Both withdrawals must be made before October 1 of the year following the year you first occupied the home.
Example at a 40% combined marginal tax rate: contributing $40,000 to your FHSA generates a $16,000 tax refund. Contributing $35,000 to your RRSP generates a $14,000 refund. Total tax refunds: $30,000 — which can be redirected back into more savings. The FHSA $40,000 is then withdrawn tax-free (no repayment ever). The RRSP $35,000 is withdrawn tax-free with a $2,333/year repayment schedule over 15 years. Effective government subsidy on your down payment: substantial.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.