The FHSA and the RRSP Home Buyers' Plan: Can You Use Both?

Who qualifies, the limits, and the rules for using both together

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

When you buy your first home, Canada offers two tax-free tools: the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP). You can use both for the same home. If you and your spouse each meet the conditions, together you can contribute up to $80,000 to FHSAs and withdraw up to $120,000 under the HBP. The investment growth in the FHSAs can be withdrawn as well, so C$200,000 is not a hard cap on what you can actually withdraw.

$40,000

Lifetime FHSA contribution limit ($8,000 a year)

$60,000

The most each person can borrow from their own RRSP under the Home Buyers' Plan

Can be combined

For the same home, you can use the FHSA and the HBP together

$80,000 + $120,000

If both spouses qualify: $80,000 of FHSA contributions + $120,000 under the HBP; FHSA growth can be withdrawn on top

How the two differ

Item	FHSARecommended	RRSP Home Buyers' Plan (HBP)
Where the money comes from	A dedicated FHSA account	Your own RRSP
Putting money in	Tax-deductible	Already deducted when you contributed to the RRSP
Taking it out to buy a home	No tax, and no repayment	No tax, but you repay it to your RRSP over 15 years
Limit	$40,000 lifetime (plus the investment earnings)	$60,000 per person
If you don't buy a home	Can be transferred to your RRSP tax-free without using RRSP room	Not applicable

Who counts as a "first-time home buyer"

No home of your own in the past 4 years
In the current year and the previous 4 calendar years, you did not live, as your principal place of residence, in a home you owned (or jointly owned) — this isn't limited to Canada; a home you owned and lived in in China counts too.
Three separate tests
The first-time home buyer tests for opening an FHSA, for a qualifying FHSA withdrawal and for the HBP are not the same: opening an FHSA and the HBP both look at a home owned by your spouse that you lived in, while a qualifying FHSA withdrawal looks only at a home you owned and lived in yourself.
Canadian resident, Canadian home
To open an FHSA you must be an adult resident of Canada; when you make a qualifying FHSA withdrawal or an HBP withdrawal, you must also be a resident of Canada, and the home must be in Canada.

How to use both

1
Open an FHSA early
Room only starts building up in the year you open the account
2
Contribute $8,000 a year
Up to $8,000 of unused room carries forward to the next year
3
Also fund your RRSP
Put the money in at least 90 days before you withdraw it
4
Sign the purchase agreement
Within the required time limits
5
Withdraw from both
A qualifying FHSA withdrawal + an HBP withdrawal
6
Move in on time
Within one year after buying

Points to watch

The FHSA runs on the calendar year
Unlike the RRSP, there is no "first 60 days" rule: contributions made from January to March can't be counted for the previous year.
The HBP must be repaid
You repay it to your RRSP over 15 years; any part not repaid is included in your income for that year. If your first withdrawal is between January 1, 2022 and December 31, 2028, repayments are deferred and start in the fifth year after the withdrawal (for example, first withdrawal in 2026, repayments start in 2031); for a first withdrawal in 2029 or later, the usual rule applies and repayments start in the second year after the withdrawal.
The FHSA has a time limit
15 years after you open it, the year you turn 71, or the year after your first qualifying withdrawal — by December 31 of whichever comes first; money not used to buy a home must be transferred to an RRSP or RRIF, or withdrawn and taxed.
You can save FHSA deductions for later
You don't have to claim the deduction in the year you contribute; you can carry it forward and claim it in a year when your income is higher.

How Sheng Qian CPA can help

Confirm eligibility first
Especially for newcomers who have owned a home in China, we first check against the "previous 4 years" rule whether you count as a first-time home buyer.
Plan the timing of contributions
How both spouses contribute to their FHSAs and RRSPs, and when to withdraw, to fit your home-buying timeline.
Handled properly at tax time
FHSA deductions and the HBP repayment schedule set up correctly in your tax return; for prices, see "What Sheng Qian CPA Can Do for Investors: Tax Returns, Accounts and Annual Planning" in this series.

Sources

Disclaimer

This article is general information only and is not tax or investment advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.