How they compare
| FHSA | RRSP Home Buyers' Plan | |
|---|---|---|
| Where the money is | Its own account | Withdrawn from your RRSP |
| Limit | Annual and lifetime limits set by the government | A limit set by the government, per person |
| Tax going in | Contributions are deductible | RRSP contributions were deductible |
| Tax coming out | Tax-free for a first home | Tax-free if repaid |
| Repayment | None | Repaid over a set number of years |
Can you use both
Yes. The FHSA and the Home Buyers' Plan can be used together for the same purchase, which increases the total amount available for a down payment.
Which to use first
The right order depends on how much is already in your RRSP, your income, and your timeline. The FHSA has no repayment, while the HBP must be repaid, which is one factor in the decision.
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Book my free review →Frequently asked questions
Can I use the FHSA and the Home Buyers' Plan together?
Yes. Both can be used for the same first-home purchase, increasing the total available.
What is the main difference?
The FHSA is its own account with no repayment. The Home Buyers' Plan is a withdrawal from your RRSP that must be repaid over a set number of years.
Which should I use first?
It depends on your existing RRSP savings, income and timeline. The FHSA has no repayment, which many people weigh in the decision.
Do FHSA withdrawals need to be repaid?
No. Qualifying FHSA withdrawals for a first home are tax-free and do not need to be repaid.
Related pages
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.