Eligible first-time buyers may combine an FHSA qualifying withdrawal with the RRSP Home Buyers’ Plan, while TFSA funds remain flexible; contribution room, deadlines and repayment rules differ.
Four points to remember
- FHSA contributions may be deductible and qualifying withdrawals are generally tax-free.
- The Home Buyers’ Plan is an RRSP withdrawal program with eligibility and repayment rules.
- Eligible buyers can use both programs for the same qualifying home.
- A TFSA is flexible but does not provide the same contribution deduction as an FHSA or RRSP.
Give each account a job
An FHSA is specifically designed for a qualifying first home. The HBP allows eligible RRSP withdrawals, while a TFSA provides flexible tax-free withdrawals. The best mix depends on existing balances, tax position and the closing date.
- FHSA: first-home saving and qualifying withdrawal
- HBP: eligible RRSP withdrawal with repayment
- TFSA: flexible liquidity
Check eligibility before moving money
First-time-buyer definitions and qualifying-home deadlines can differ by program. Do not transfer or withdraw funds based only on a marketing summary; confirm the rules that apply to the buyer and spouse or partner.
- Account-opening eligibility
- Written purchase agreement
- Occupancy intention and withdrawal timing
Protect the mortgage paper trail
Mortgage lenders need a clear history for down payment and closing funds. Keep account statements, transfer confirmations and withdrawal forms so the source and movement of funds can be verified.
- Ninety-day account history when requested
- Withdrawal confirmation
- Deposit and closing-fund trail
Keep money for more than the down payment
The down payment is only one part of the purchase. Preserve funds for land transfer tax, legal fees, adjustments, insurance-premium tax, moving and immediate repairs.
- Calculate closing cash
- Keep an emergency reserve
- Avoid last-minute borrowed funds
Frequently asked questions
Can I use both an FHSA and the Home Buyers’ Plan?
Yes, eligible buyers may generally use both for the same qualifying home, provided each program’s conditions and deadlines are met.
Do FHSA withdrawals have to be repaid?
A qualifying FHSA withdrawal generally does not require repayment. HBP withdrawals have separate repayment rules.
Should I empty every account for the down payment?
Not automatically. Closing costs and emergency reserves matter, and tax or investment consequences should be reviewed with the appropriate advisor.
Official sources and verification
This guide prioritizes primary information from governments, regulators and CMHC. Mortgage policies change; confirm the rules that apply when you apply.
This guide and its calculators are for general education only—not an approval, commitment, or legal, tax or investment advice. Actual rates, fees, underwriting and product terms vary by lender and application.