Two of the most powerful tools for a first-time buyer are the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP). They can be used together for the same home — and the order you use them in matters.

The FHSA

Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home are completely tax-free and never repaid (like a TFSA). You can contribute up to $8,000 per year to a $40,000 lifetime maximum. Unused room carries forward once opened.

The Home Buyers' Plan

The HBP lets you withdraw up to $60,000 from your RRSP. The catch: you must repay it to your RRSP over 15 years, starting the second year — miss a repayment and that amount becomes taxable income.

The stacking strategy

  • One buyer can access up to $100,000 (FHSA $40K + HBP $60K); a couple up to $200,000.
  • Fill your FHSA first — because it's never repaid, it lowers what you owe your future self.
  • Open your FHSA now even with $0: it starts your contribution clock so you can catch up later.
  • You can transfer existing RRSP savings into an FHSA tax-free (verify current CRA limits).

Your move

If you haven't opened an FHSA, that's the single highest-value free action you can take today.