If you are buying your first home, two federal programs can help with the down payment. A First Home Savings Account (FHSA) lets you save up to $40,000 with a tax deduction going in and no tax coming out. The RRSP Home Buyers’ Plan (HBP) lets you borrow up to $60,000 from your own RRSPs tax-free and pay it back over 15 years.
You can use both for the same home. That means one person could put up to $100,000 of their own savings toward a first home, plus any investment growth inside the FHSA. A couple who both qualify could use up to double that. The rules below are current as of September 2026.
How much you can use
| FHSA | Home Buyers’ Plan (RRSP) | |
|---|---|---|
| Limit | $8,000 a year, $40,000 lifetime | $60,000 per person in total |
| Unused room | Carries forward, but only up to $8,000 (so the most you can add in one year is $16,000) | Not applicable |
| Money going in | Contributions are generally tax-deductible | Comes from RRSP savings you already have |
| Money coming out | Tax-free if it is a qualifying withdrawal | Tax-free, as long as you repay it |
| Do you pay it back? | No | Yes, over 15 years |
| Form | RC725 | T1036 |
FHSA room only starts the year you open your first FHSA. If you open one in 2026 and put nothing in, you can add up to $16,000 in 2027: this year’s $8,000 plus $8,000 carried forward. Investment growth inside the FHSA does not count toward your limits.
The HBP limit went up from $35,000 to $60,000 with the 2024 federal budget.
Who qualifies
The first-time home buyer rule
Both programs use a four-year look-back. You count as a first-time home buyer if you did not live in a home that you owned or jointly owned as your main home at any time in the current year or the four calendar years before it. So you may still qualify if you owned a home years ago.
To open an FHSA
- You are a resident of Canada.
- You are at least 18, or 19 if that is the age of majority in your province or territory.
- You are 71 or younger on December 31 of the year you open it.
- You are a first-time home buyer, and your spouse or common-law partner has not lived in a home they owned in that same period either. If you have no spouse or partner, only your own history counts.
To use the Home Buyers’ Plan
- You are a resident of Canada when you withdraw.
- You are a first-time home buyer. For the HBP, the 30 days just before the withdrawal do not count against you.
- If you used the HBP before, your HBP balance must be zero on January 1 of the year you withdraw.
There are two exceptions to the first-time buyer rule for the HBP. You do not need to be a first-time buyer if you are buying for a person with a disability, or to help them live in a home that is more accessible or better suited to their needs. And if your marriage or common-law relationship broke down in the last four years, you may still qualify, but you have to sell the old home no later than two years after the end of the year you withdraw.
Not sure what else you might be missing? Try the benefits checkup.
How to use them, step by step
- Open an FHSA early. Your $8,000 of room only starts the year you open one, so opening it sooner gives you more room later, even if you put in very little at first. FHSAs are offered by banks, credit unions and other financial institutions.
- Contribute by December 31. The FHSA year is January 1 to December 31. Unlike an RRSP, money you put in during the first 60 days of a year cannot be deducted on the previous year’s return.
- Claim the deduction when it helps most. You report FHSA activity on Schedule 15 of your tax return. You do not have to claim the deduction right away. Unclaimed amounts carry forward to a later year, even after the FHSA is closed.
- Sign a written agreement to buy or build. Both programs need a written agreement before you take the money out. A pre-approved mortgage is not enough.
- Fill out the forms. For the FHSA, give Form RC725 to your FHSA provider. For the HBP, give Form T1036 to your RRSP provider, one form for each withdrawal.
- Buy and move in. The home must be bought or built before October 1 of the year after you withdraw, and you must move in, or plan to, within one year after buying or building it.
- Repay the HBP. Each year, contribute at least the minimum to your RRSP and designate it as an HBP repayment on Schedule 7 of your tax return.
When you get the money and when repayments start
FHSA qualifying withdrawal
Your FHSA provider pays you once it has your RC725. For the withdrawal to be tax-free, all of these must be true:
- You are a first-time home buyer when you withdraw (the 30 days just before do not count against you).
- You have a written agreement to buy or build a home in Canada, closing or finished before October 1 of the next year.
- You did not buy the home more than 30 days before the withdrawal.
- You stay a resident of Canada from your first qualifying withdrawal until you buy the home.
- You plan to live in the home as your main home within one year.
A withdrawal that does not meet these rules is added to your income for the year.
HBP withdrawals and repayment
You can make more than one HBP withdrawal, but only in the same calendar year as your first one and in January of the next year. You then have 15 years to repay. When the first year of repayment falls depends on when you made your first withdrawal:
| First HBP withdrawal | Repayments start | Example |
|---|---|---|
| Before January 1, 2022 | Second year after the withdrawal | Withdraw in 2021, start repaying in 2023 |
| January 1, 2022 to December 31, 2025 | Fifth year after the withdrawal | Withdraw in 2024, start repaying in 2029 |
| January 1, 2026 to December 31, 2028 | Fifth year after the withdrawal | Withdraw in 2026, start repaying in 2031 |
The five-year grace period for 2026 to 2028 withdrawals was extended by the Spring Economic Update 2026, and the law received Royal Assent on June 19, 2026.
Your minimum repayment each year is your HBP balance divided by the number of years left. For a full $60,000 withdrawal, that is $4,000 a year. You can make the payment during the year or in the first 60 days of the next year. The CRA shows your balance and required amount on your notice of assessment or HBP statement. See upcoming deadlines for the yearly cut-off.
If you repay less than the minimum, the shortfall is added to your income for that year and taxed. Repayments are not tax-deductible, cannot go into an FHSA, and cannot come from your spouse’s RRSP contributions.
Using the FHSA and HBP together
The CRA confirms you can make an HBP withdrawal and a qualifying FHSA withdrawal for the same home, as long as you meet the conditions for each. For one buyer, that means up to $40,000 in FHSA contributions plus growth, and up to $60,000 from RRSPs. If you and your spouse or partner both qualify, each of you can use your own FHSA and your own HBP.
The big difference is that FHSA money never has to be paid back, while HBP money does. If you have both, keep in mind that only the HBP part creates a repayment schedule.
If you never buy a home
An FHSA must be closed by December 31 of the earliest of these years: the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal. You can move what is left directly to an RRSP or RRIF with no tax and without using your RRSP room. If you take it out as cash instead, it is taxable. If you miss the deadline, the value left in the account is added to your income.
Mistakes to avoid
- Waiting to open an FHSA. No room builds up until you open one.
- Going over the limit. Excess FHSA contributions are taxed at 1% a month. Moving money from an RRSP into an FHSA counts toward your FHSA limit and is not deductible.
- Withdrawing without a signed agreement. Both programs require a written agreement to buy or build first.
- Buying too long before the FHSA withdrawal. If you take possession more than 30 days before your qualifying withdrawal, it will not qualify.
- Putting money into your RRSP right before an HBP withdrawal. Contributions made in the 89 days before the withdrawal may not be deductible.
- Forgetting to designate HBP repayments. Money you put in your RRSP only counts as a repayment if you mark it on Schedule 7.
Watch for scams: the government never asks for a fee, payment or gift cards to “unlock” your FHSA or HBP money. Learn more on our scams page.
Common questions
What is the FHSA limit for 2026?
You can contribute $8,000 a year plus up to $8,000 of unused room from earlier years, to a lifetime maximum of $40,000. Room only starts once you open your first FHSA.
Can I use the FHSA and the Home Buyers’ Plan for the same house?
Yes. The CRA allows both for the same qualifying home if you meet each program’s conditions, so one person can use up to $40,000 from an FHSA plus growth and up to $60,000 from RRSPs.
When do I have to start repaying the Home Buyers’ Plan?
If your first withdrawal was between January 1, 2022 and December 31, 2028, repayments start in the fifth year after the withdrawal. For earlier withdrawals, they start in the second year after.
What happens if I miss an HBP repayment?
The amount you did not repay is added to your income for that year and taxed.
Can I use the HBP or FHSA if I owned a home before?
Yes, if you did not live in a home you owned as your main home during the current year or the previous four calendar years. For the FHSA, your spouse or partner must meet the same test when you open the account.
What happens to my FHSA if I don’t buy a home?
You can transfer it to your RRSP or RRIF tax-free without using RRSP room. You must do this, or withdraw and pay tax, before the account’s 15-year or age-71 deadline.
