FHSA vs RRSP Home Buyers' Plan: Which First-Home Account Wins?
Compare the FHSA and the RRSP Home Buyers' Plan for a first home in Canada: limits, tax deductions, repayment rules, and how to use both together.
FHSA vs RRSP Home Buyers' Plan: Which First-Home Account Wins?
Canadians buying a first home have two tax-advantaged accounts. They can be used together.
Side by side
| | FHSA | RRSP Home Buyers' Plan | |---|---|---| | Contribution deductible | Yes | Yes | | Annual / lifetime limit | $8,000 / $40,000 | Withdraw up to $60,000 from your RRSP | | Must be paid back | No | Yes, over 15 years | | Withdrawal taxed | No (qualifying purchase) | No, if repaid on schedule |
Always confirm current limits with the Canada Revenue Agency.
Which first?
For most first-time buyers, fill the FHSA first: it gives the RRSP's deduction without the repayment. Add the HBP if you already have RRSP savings or need a bigger down payment.
The down payment payoff
A bigger down payment can drop or remove CMHC insurance. At 20% down there's no insurance at all — see minimizing CMHC insurance and the CMHC optimizer.
Next steps
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