FHSA vs RRSP Home Buyers’ Plan: Which Should You Use?

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Buying a Home

By the Ottawa Mortgages editorial team · Last reviewed: September 2026 · How we write our guides

FHSA vs RRSP Home Buyers’ Plan: which should first-time buyers use? The First Home Savings Account (FHSA) gives you a tax deduction on contributions and tax-free withdrawals for a first home, with no repayment. The RRSP Home Buyers’ Plan (HBP) lets you borrow up to $60,000 from your RRSP and repay it over 15 years. Many buyers can use both, and the FHSA is often the better first choice because it does not have to be repaid.

Saving for a first home in Ottawa is easier when you use the accounts designed for it. Here is how the FHSA and the HBP work and how they compare.

Side by side

FHSARRSP Home Buyers’ Plan
Contribution limit$8,000 per year, up to $40,000 lifetimeUses your existing RRSP savings
Tax deduction on contributionsYesYes, when you contributed to your RRSP
Withdrawal limit for a homeYour FHSA balanceUp to $60,000
Tax on withdrawalNone for a qualifying withdrawalNone, if repaid on schedule
RepaymentNoneRepay over 15 years or the amount is added to your income
Rules, limits and timing change and have detailed conditions. Check the CRA FHSA page and the CRA Home Buyers’ Plan page before you act.

Who qualifies?

  • You must be a first-time buyer, generally meaning you have not lived in a home you or your spouse owned in the current year or the previous four calendar years.
  • You must be a Canadian resident and meet the age requirements.
  • You must intend to occupy the home as your principal residence.

Can you use both?

Yes, eligible buyers can generally use an FHSA withdrawal and an HBP withdrawal for the same purchase. That can significantly increase the down payment available to you. Couples can each use their own accounts.

How to plan

  1. Open an FHSA as soon as you are eligible. Contribution room starts building once it is open.
  2. Contribute regularly, and consider claiming the tax deduction to boost your savings.
  3. Decide whether to add HBP funds from your RRSP, and plan for repayment.
  4. Tell your lender about the source of your down payment and keep documents ready.

Related: how much down payment you need and the first-time buyer guide.

Frequently asked questions

What happens if I do not buy a home with my FHSA?

You can transfer the balance to an RRSP or RRIF without affecting your RRSP room, subject to the rules. Other withdrawals are taxable.

Do I have to repay my FHSA withdrawal?

No. A qualifying FHSA withdrawal for a first home does not have to be repaid.

Should I speak to a tax professional?

Yes. These accounts have detailed rules, and a tax professional can confirm what applies to you.

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