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Canadian Housing & Tax Calculator
Compare the First Home Savings Account (FHSA) vs. Home Buyers' Plan (HBP) limits, tax refund savings, and combined down payment power for Canadian first-time home buyers.
Researched by usecos Research & Engineering · Official CRA sources verified August 1, 2026
| Feature | FHSA | RRSP HBP |
|---|---|---|
| Annual Contribution Limit | $8,000/yr | 18% of earned income (RRSP room) |
| Lifetime / Withdrawal Cap | $40,000 lifetime | $60,000 (Budget 2024) |
| Tax Deduction on Contribution | ✅ Yes — deductible | ✅ Yes — deductible |
| Withdrawal Tax | ✅ Tax-free for qualifying home | ✅ Tax-free (if repaid on schedule) |
| Repayment Obligation | $0 — No repayment ever | 15-year repayment (1/15th/yr) |
| Missed Repayment Penalty | N/A | Added to taxable income |
| Carry-Forward Room | Up to $8,000 unused room | Unlimited RRSP room carry-forward |
| Can Be Combined | ✅ Yes — FHSA + HBP = up to $100k individual / $200k couple | |
Scenario: Two first-time buyers, each earning $85,000/yr (30.5% combined marginal rate in Ontario), both maximizing FHSA and HBP.
Optimal strategy: Max FHSA first ($0 repayment), then use HBP for additional capacity. The $24,400 in FHSA tax refunds can be directed toward closing costs or reinvested.
Evaluating whether to prioritize FHSA, RRSP HBP, or non-registered accounts depends on your timeline and monthly cash flow tolerance:
| Buyer Strategy | Purchase Horizon | Priority Order | Post-Closing Cash Flow Impact | Strategic Recommendation |
|---|---|---|---|---|
| Immediate Purchase (< 1 Year) | Under 12 months | FHSA ($8k) → RRSP HBP (existing room) | HBP requires up to \$333/mo repayment starting in year 2 or 5 | Funds must sit in RRSP for 90 days before HBP withdrawal; FHSA has no 90-day holding requirement |
| Medium-Term (2–5 Years) | 2 to 5 years | Max FHSA ($8k/yr) → TFSA → RRSP | Zero mandatory monthly repayments | Reinvest FHSA tax refunds into TFSA or RRSP to generate compounding double refunds |
| Max Capacity Power Couple | 3 to 5 years | Dual FHSA ($80k total) + Dual HBP ($120k total) | Combined \$8,000/yr (\$667/mo) repayment | Creates \$200,000 tax-free down payment + up to \$48,800 in total CRA tax refunds |
| Tight Post-Closing Cash Flow | Any horizon | FHSA Only ($40k max) → Avoid HBP | No additional debt load beside mortgage | Avoids the trap of having to repay \$4,000/yr into RRSP while managing higher mortgage rates |
Yes. Under Canadian federal tax rules, qualifying first-time home buyers can combine both programs. An individual can withdraw up to $40,000 from an FHSA plus up to $60,000 from an RRSP under the HBP, providing up to $100,000 in tax-free down payment funds ($200,000 for an eligible couple).
For almost all first-time home buyers, prioritize the FHSA first. Both accounts offer the identical tax deduction against your income, but qualifying FHSA withdrawals for a home purchase are 100% tax-free with zero repayment required. In contrast, RRSP HBP withdrawals must be repaid over a 15-year schedule.
If you do not purchase a qualifying home within 15 years of opening the account (or by December 31 of the year you turn 71), you can transfer your entire FHSA balance directly into your RRSP or RRIF tax-free without using any RRSP contribution room.
Under standard rules, HBP repayment begins the second year following the year of withdrawal. Under Budget 2024 rules, participants who made an HBP withdrawal between January 1, 2022, and December 31, 2025 benefit from an extended 5-year grace period before annual repayments (1/15th per year) commence.
Direct answer
For an individual or couple earning $85,000.00/yr: Combining the FHSA ($8,000.00) and RRSP HBP ($60,000.00) provides up to $68,000.00 in total tax-free down payment capacity with an estimated $2,440.00 upfront tax refund.
Jump to the calculator ↓✔️ FHSA Strategy: Best to maximize first! Unlike the HBP, money withdrawn from FHSA for a qualifying first home purchase is never repaid.
✔️ HBP Strategy: Provides up to $60,000 per person tax-free loan from your RRSP. Repayment starts 2 to 5 years after withdrawal under CRA guidelines.
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