FHSA vs RRSP HBP Withdrawal Rules & Deadlines (2026)

Direct answer: Qualifying Canadian first-time home buyers can combine both the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP) on the same home purchase—unlocking up to $40,000 (plus all investment growth) from an FHSA and up to $60,000 from an RRSP ($100,000+ per individual, or $200,000+ for an eligible couple). Qualifying FHSA withdrawals (Form RC725) are permanently tax-free with zero repayment required, whereas RRSP HBP withdrawals (Form T1036) must be repaid over 15 years following the CRA grace period.

Primary sources: CRA: First Home Savings Account (FHSA); CRA: Home Buyers' Plan.

Model your exact tax refund, combined down payment, and 15-year HBP repayment schedule in our FHSA vs RRSP HBP Calculator, and check your parallel tax-free room in our TFSA Contribution Room Calculator.

Side-by-side comparison: FHSA vs RRSP Home Buyers' Plan (2026)

Primary sources: CRA: First Home Savings Account (FHSA); CRA: Home Buyers' Plan.

While both accounts allow you to deduct contributions from your taxable income on your T1 return, their withdrawal, growth, and repayment mechanics are fundamentally different:

Rule / Feature	First Home Savings Account (FHSA)	RRSP Home Buyers' Plan (HBP)
Annual / Lifetime Contribution Limit	$8,000 / year (up to $8,000 carry-forward) · $40,000 lifetime	18% of prior year earned income (up to annual CRA dollar limit)
Maximum Tax-Free Home Withdrawal	100% of account balance ($40k contributions + all investment growth)	$60,000 maximum per individual ($120,000 per couple)
90-Day Contribution Lock-In Rule?	No 90-day lock-in required before a qualifying withdrawal	Yes — 90-day rule applies: RRSP deposits made within 89 days of withdrawal are generally not tax-deductible
Repayment Obligation	$0 — Never repaid (permanent tax-free withdrawal)	100% must be repaid over 15 years (1/15th per year); missed payments added to taxable income
CRA Withdrawal Form	Form RC725 (Request to Make a Qualifying Withdrawal from your FHSA)	Form T1036 (Home Buyers' Plan Request to Withdraw Funds from an RRSP)
What if you don't buy a home?	Transfer tax-free to your RRSP/RRIF within 15 years without using RRSP room	Funds remain in your RRSP for retirement

Critical CRA withdrawal deadlines and forms (RC725 vs T1036)

Primary sources: CRA: First Home Savings Account (FHSA); CRA: Home Buyers' Plan.

Even eligible first-time buyers can trigger unexpected income tax if they violate CRA timing rules around closing day and year-end contributions:

• The 30-Day Post-Closing Deadline: For both the FHSA (Form RC725) and the RRSP HBP (Form T1036), you must have a written agreement to buy or build a qualifying home before October 1 of the year following the withdrawal, AND you must make the withdrawal no later than 30 days after acquiring (closing on) the home. If you withdraw from your FHSA on day 35 after taking title, the withdrawal is no longer qualifying and becomes 100% taxable income.
• FHSA Calendar-Year vs RRSP First-60-Days Rule: Unlike RRSP contributions (which can be made in the first 60 days of the new year and deducted on the prior year's tax return), FHSA contributions follow the strict calendar year (January 1 to December 31). Any FHSA deposit made in January or February counts only toward that new calendar year.
• Carry-forward only starts AFTER you open an FHSA: You do not accumulate $8,000 of FHSA carry-forward room until the calendar year you actually open your first FHSA contract with a financial institution—even if you only deposit $100 in year one.
• The 5-Year HBP Repayment Grace Period: Under federal rules for HBP withdrawals made between January 1, 2022, and December 31, 2025, the 15-year repayment schedule begins in the fifth calendar year following the year of withdrawal (rather than the standard second year).

Worked example: couple combining FHSA + RRSP HBP

Suppose two first-time buyers in Ontario each earn $95,000/year (~31.48% marginal tax rate) and each hold $32,000 in an FHSA (including $4,000 growth) plus $45,000 in an RRSP held for more than 90 days:

1. Combined Tax-Free Down Payment: Each partner withdraws $32,000 (FHSA via Form RC725) + $45,000 (RRSP HBP via Form T1036) = $77,000 per person, or $154,000 total down payment.
2. Zero Repayment on the $64,000 FHSA Portion: Neither partner ever has to repay the $64,000 withdrawn from their FHSAs.
3. 15-Year Repayment on the $90,000 HBP Portion: Each partner repays $45,000 ÷ 15 = $3,000/year ($250/month) back into their RRSP during the 15-year repayment window.
4. Next step—test CMHC & closing costs: On a $750,000 home, that $154,000 down payment crosses the 20% conventional threshold ($150,000), saving the couple over $18,000 in CMHC mortgage default insurance. Run your exact home price in our Mortgage Calculator, CMHC Insurance Calculator, and First-Time Home Buyer Guide.

Methodology and limitations

Program rules, dollar caps ($8,000 annual / $40,000 lifetime FHSA under Income Tax Act s. 146.6; $60,000 HBP limit under s. 146.01), and form references (RC725 and T1036) reflect Canada Revenue Agency guidance for the 2026 tax year. Qualifying first-time buyer definitions (not living in a home owned by you or your spouse/common-law partner in the current calendar year or the preceding 4 calendar years) must be verified independently for both the FHSA and HBP. This guide is for financial planning and does not constitute personal tax or legal advice. Verified October 24, 2026.

Sources: CRA: First Home Savings Account (FHSA); CRA: What is the Home Buyers' Plan (HBP)?; Income Tax Act, s. 146.6 (FHSA Legislation).