The Canadian government offers two powerful programs to help first-time buyers save for a down payment. Used together, they can significantly boost your purchasing power.
First Home Savings Account (FHSA)
Introduced in 2023, the FHSA allows first-time buyers to contribute up to $8,000/year (lifetime max $40,000). Contributions are tax-deductible (like an RRSP), and qualifying withdrawals for a home purchase are tax-free (like a TFSA). It's the best of both worlds.
RRSP Home Buyers' Plan (HBP)
The HBP allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to use toward a home purchase. You have 15 years to repay the amount back into your RRSP.
Using Both Together
You can use both programs on the same purchase. A couple could access up to $150,000 ($40,000 FHSA each + $35,000 HBP each) — a meaningful down payment on a GTA property.
Key Considerations
FHSA funds must be in the account for at least one calendar year before withdrawal. RRSP funds must have been in the account for at least 90 days.
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January 29, 2026
