Published 17 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Use the FHSA first for most first-time buyers: qualifying withdrawals are tax-free and never repaid. Then use the RRSP Home Buyers’ Plan for the gap, which allows up to $60,000 each but must be repaid over 15 years. You can use both for the same home.
Both accounts help first-time buyers, and you can use both for the same home. They work very differently, and the order you use them in affects your budget for years.
Side by side
| FHSA | RRSP Home Buyers’ Plan | |
|---|---|---|
| Most you can use | $40,000 of contributions, plus growth | $60,000 withdrawal |
| Tax on the way in | Deductible | Deductible (when you originally contributed) |
| Tax on the way out | Tax-free for a qualifying home | Tax-free if repaid |
| Repayment | None | 15 years; 2026 withdrawals start in 2028 |
| Timing catch | Room builds only after you open it | Money must sit 90 days first |
Why the FHSA usually goes first
Money out of an FHSA for a qualifying home is gone from your balance sheet for good. There is no repayment, no future bill, and nothing added to your income. A Home Buyers’ Plan withdrawal creates a minimum payment every year for 15 years, which a lender and your own budget both need to account for.
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When the Home Buyers’ Plan makes sense
- You already have a large RRSP and the FHSA isn’t big enough yet.
- Your income will rise, so the repayments will be easier later.
- You need to cross a down payment threshold, such as the point where the insurance premium drops.
The couple maximum
Two partners who each qualify can bring $40,000 each from maxed FHSAs, plus growth, and $60,000 each from their RRSPs. That is up to $200,000 of registered money before savings or gifts, subject to each program’s rules.
A simple order of operations
- Open an FHSA as early as possible so room starts building.
- Fund the FHSA each year before extra RRSP contributions if a purchase is within a few years.
- Leave any RRSP top-ups at least 90 days before you plan to withdraw.
- At closing, take the FHSA withdrawal first, then the Home Buyers’ Plan for the gap.
- Put the Home Buyers’ Plan repayment in your budget as a fixed bill starting two years later.
The takeaway
FHSA first, Home Buyers’ Plan second, and budget the Home Buyers’ Plan repayment as a fixed bill starting two years after the withdrawal.
Talk it through with me
Get a first-time buyer plan
Tell me your savings, income range and target area. I will send a realistic price range and next steps.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Can I use the FHSA and the Home Buyers’ Plan for the same home?
Yes, as long as you meet each program’s conditions.
Which should I use first?
Usually the FHSA, because it does not have to be repaid.
How much can a couple use in total?
Up to $40,000 each from FHSAs, plus growth, and $60,000 each under the Home Buyers’ Plan.
Sources
- Canada Revenue Agency — First Home Savings Account — limits and qualifying withdrawals
- Canada Revenue Agency — Home Buyers’ Plan — limits, eligibility and repayment
Related reading
- Best Realtor for First-Time Home Buyers in Toronto (2026): What to Look For
- First Home Savings Account (FHSA) in 2026: how it works for Toronto buyers
- RRSP Home Buyers’ Plan in 2026: the $60,000 withdrawal and what changed
- Gifted down payment in Ontario: gift letters, lender rules and what families should know
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.