The FHSA + RRSP Home Buyers' Plan Combo: A Complete Guide

First-time home buyers in Canada have access to the most generous tax-advantaged down payment system in the world. By combining the FHSA and the RRSP Home Buyers' Plan, a couple can pull up to $200,000 from registered accounts for their first home. Here's the complete playbook.

The FHSA: $40,000 per person (tax-free)

The First Home Savings Account lets you contribute $8,000/year up to a $40,000 lifetime limit. Contributions are tax-deductible (like an RRSP). Qualifying withdrawals for a first home are completely tax-free (like a TFSA). You never have to repay it.

The RRSP HBP: $60,000 per person (interest-free loan)

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP for a first home purchase. Unlike the FHSA, this is a loan — you repay it to your RRSP over 15 years. But it's interest-free, and the repayment schedule is flexible.

The combo: up to $100,000 per person

You can use BOTH programs for the same home purchase. That's $40,000 (FHSA) + $60,000 (HBP) = $100,000 per person. As a couple, that's $200,000 of tax-advantaged down payment money.

The strategy

1. Open an FHSA immediately — even with $0. Carry-forward room starts accumulating.
2. Max the FHSA first ($8,000/year). You get the tax deduction now and tax-free withdrawal later.
3. Build up your RRSP with the tax refund from your FHSA contributions, plus regular contributions.
4. When buying: withdraw the full FHSA balance tax-free, then withdraw up to $60,000 from your RRSP under the HBP.
5. After purchase: repay the HBP over 15 years (minimum 1/15th per year to your RRSP). The FHSA requires no repayment.

Tax savings on top

Here's what makes this incredible: if you and your partner each contribute $8,000/year to your FHSAs, that's $16,000 in tax deductions annually. At a 30% marginal rate, that's $4,800 back at tax time — which you can invest in your RRSPs to build up the HBP pot. The system feeds itself.