Can I use both the FHSA and HBP for the same purchase?

Yes. Since 2023 you can combine FHSA (tax-free, no repayment, max $40K) and HBP (repayable over 15 years, max $60K) for the same purchase.

What is the FHSA annual contribution limit?

$8,000 per year with a $40,000 lifetime maximum. Unused room carries forward one year.

What if I have owned a home before?

You qualify as a first-time buyer if you haven't owned a principal residence in the current year or the preceding 4 calendar years.

Canadian First-Time Buyer Calculator

Calculate your total down payment using FHSA, Home Buyers' Plan (RRSP), the $1,500 tax credit, and provincial LTT rebates.

Province

Home Price

Cash Savings

FHSA Balance

RRSP Balance

Annual Taxable Income

Total Down Payment Available

CA$150,000

27.3% of purchase price

Cash Savings

CA$80,000

FHSA Withdrawal (tax-free)

CA$20,000

RRSP via HBP (repaid)

CA$50,000

FTB Tax Credit

CA$1,500

LTT Rebate (ON)

CA$862

Total Non-Repayable Incentives

CA$22,362

Note: The HBP withdrawal of CA$50,000 must be repaid to your RRSP over 15 years (~CA$3,333/year). Missing a repayment adds that year's amount to your taxable income. The FHSA withdrawal is completely tax-free with no repayment required.

Canadian First-Time Buyer Programs

Canada offers several powerful programs to help first-time buyers accumulate down payment funds and reduce purchase costs. Using all available programs together can significantly improve your purchasing power.

First Home Savings Account (FHSA)

Introduced in 2023, the FHSA lets first-time buyers contribute up to $8,000 per year (lifetime maximum $40,000). Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying home purchase are completely tax-free like a TFSA. This is the most powerful first-time buyer tool in Canadian history.

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free for a first home purchase. If buying with a partner who also qualifies, your household can access up to $120,000 combined. The funds must be repaid over 15 years — if you miss a repayment year, that amount is added to your taxable income for that year.

First-Time Home Buyer Tax Credit

Claim a $10,000 federal non-refundable tax credit in the year you purchase. At the 15% federal tax rate, this provides a $1,500 tax reduction. Both spouses can split the claim, but the combined claim cannot exceed $10,000.

Example: Buying in Ottawa, Ontario

Jennifer's First Home — $599,000 Townhouse

Home Price	$599,000
Cash Savings	$35,000
FHSA Withdrawal (tax-free)	$32,000
RRSP via HBP	$45,000
Total Down Payment (19%)	$112,000
Ontario LTT (after rebate)	$0 (FTB rebate covers it)
FTB Tax Credit	$1,500
Total Non-Repayable Savings	$33,500

By keeping the down payment just under 20% (19%), Jennifer avoids CMHC but is close to the threshold. Getting to exactly 20% ($119,800) would eliminate CMHC completely.

Frequently Asked Questions

Yes. As of 2023, you can use both the FHSA (tax-free, no repayment) and the HBP (repayable over 15 years) for the same qualifying home purchase. This gives a couple combined access to $80,000 FHSA + $120,000 HBP = $200,000 in RRSP/FHSA funds for a down payment.

$8,000 per year with a $40,000 lifetime maximum. Unused contribution room carries forward one year (you can contribute $16,000 in year 2 if you contributed nothing in year 1). The FHSA must be used within 15 years of opening, and you must be a first-time buyer at the time of withdrawal.

For the HBP and FTB Tax Credit, you qualify as a first-time buyer if neither you nor your partner have owned a home that you occupied as a principal residence at any time during the current calendar year or the preceding four calendar years. This is the CRA's definition — it's possible to become a "first-time buyer again" after a 4-year gap.