First home · Explainer · Ontario

FHSA vs RRSP Home Buyers' Plan for a First Home

Both the FHSA and the RRSP Home Buyers' Plan help with a first home, but they work differently. This page compares them so they can be used in the right combination.

Licensed in Ontario (FSRA)No selling on the first callWritten plan in 48 hours

How they compare

FHSARRSP Home Buyers' Plan
Where the money isIts own accountWithdrawn from your RRSP
LimitAnnual and lifetime limits set by the governmentA limit set by the government, per person
Tax going inContributions are deductibleRRSP contributions were deductible
Tax coming outTax-free for a first homeTax-free if repaid
RepaymentNoneRepaid 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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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.

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