FHSA + RRSP Home Buyers’ Plan: Up to $100,000 Combined
By MyMoneyMap Founder · Last updated
The combined cap explained
Two separate federal programs, two separate accounts, two separate withdrawal events. Both serve the same purpose (down payment on a first home) and they stack additively without interaction.
| Source | Per buyer | Couple buying together |
|---|---|---|
| FHSA (fully funded over 5 years) | $40,000 | $80,000 |
| RRSP HBP (since April 16, 2024) | $60,000 | $120,000 |
| Combined maximum | $100,000 | $200,000 |
Sources: CRA First Home Savings Account program; Government of Canada Budget 2024 (HBP increase).
$200,000
Maximum registered first-home funds available to a couple where both partners are first-time home buyers and have fully funded their FHSAs and RRSPs.
Source: Government of Canada Budget 2024 · 2024
The optimal funding order
- Open the FHSA first, even with $0 of initial funding. Opening the account starts the contribution-room clock - wait too long and you cap your room.
- Fund the FHSA up to $8,000/year, every year until you hit the $40,000 lifetime cap or buy the home, whichever comes first. This is your highest-priority registered dollar - no repayment, tax-deductible going in, tax-free coming out.
- Fund the RRSP as well, especially in high-marginal-rate years. RRSP contributions get the same deduction value as FHSA contributions, but with much larger annual room (18% of earned income). You’ll use the biggest chunk of this RRSP balance via the HBP.
- At purchase: withdraw qualifying FHSA first, then HBP. Sign the offer to purchase, withdraw the FHSA for tax-free funds, and submit the HBP form (T1036) to your RRSP institution for the HBP withdrawal - also tax-free at the time of withdrawal.
- Repay the HBP over 15 years. Starting the second year after the HBP withdrawal, you owe 1/15 of the withdrawn amount per year. Miss a payment and that year’s repayment is added to your taxable income.
Repayment schedule for the HBP portion
The HBP is essentially a 0% interest loan from your future self. You withdraw the funds tax-free today, but you owe the same dollars back to your RRSP over the next 15 years.
| HBP withdrawal | Annual repayment | First repayment due |
|---|---|---|
| $30,000 | $2,000 | Year 2 after withdrawal |
| $45,000 | $3,000 | Year 2 after withdrawal |
| $60,000 (max) | $4,000 | Year 2 after withdrawal |
Source: CRA Home Buyers' Plan (canada.ca). Repayment is reported on T1043 line 24600 of your tax return.
If you miss a year’s repayment, the unpaid amount that year is added to your taxable income - taxed at your marginal rate. On a $4,000 missed repayment at 30% combined marginal rate, that’s a $1,200 tax bill. Set up an annual reminder.
When the stack matters most
The combined $100,000 strategy is most valuable in two scenarios:
- High-cost markets (Vancouver, Toronto, Victoria, Mississauga, parts of Ottawa). A 20% down payment on a $700k condo is $140k - the FHSA alone falls short, the HBP alone falls short, but the stack covers most of it.
- Couples who can both contribute. Two FHSAs + two HBPs = $200,000. That covers a 20% down payment on a $1M home.
For lower-cost markets (most of the Prairies, Atlantic Canada, northern Ontario), you may not need the full $100k. Funding the FHSA alone often gets you there with less paperwork and no repayment burden.
Frequently asked questions
- Can I use FHSA and RRSP HBP on the same home purchase?
- Yes. They're independent programs with separate rules and limits. A single first-time home buyer can use up to $40,000 from a fully-funded FHSA plus up to $60,000 from the RRSP Home Buyers' Plan - for a combined $100,000 of registered first-home funds. A couple buying together can stack to $200,000.
- What's the maximum HBP withdrawal in 2026?
- $60,000 per person, up from $35,000 before April 16, 2024. The increase was announced in Budget 2024 to help first-time buyers cope with high housing prices. The HBP withdrawal must be repaid to the RRSP over 15 years, starting in the second year after withdrawal.
- What's the order I should fund FHSA and RRSP?
- FHSA first up to $8,000/year (better tax treatment - no repayment required). Once the FHSA is full or you need more than $40,000 for your down payment, contribute to RRSP for the HBP. Both qualify you for tax deductions at the same marginal rate.
- Do FHSA and HBP both require me to be a first-time home buyer?
- Yes. Both programs require you to be a first-time home buyer - meaning neither you nor your spouse owned a qualifying home you lived in as a principal residence in the current calendar year or the previous four years. The HBP has a few additional exceptions for marital breakdown.
- Can I withdraw from FHSA and HBP at the same time?
- Yes - you can make both withdrawals for the same home purchase. The FHSA qualifying withdrawal and the HBP withdrawal are independent, and there's no rule that limits combining them. Most lenders are familiar with this stack and treat the combined funds as a standard down payment.
- What if the home costs less than $100,000?
- You only withdraw what you need. The FHSA and HBP both allow you to withdraw less than your maximum. Withdrawing less from HBP also reduces the eventual repayment burden - you only have to repay what you actually took out.
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Educational content only - not personalised financial advice. Editorial Policy.