Should I use FHSA or RRSP for my down payment?

Use both if possible. FHSA ($40K) has no repayment requirement. RRSP HBP ($60K) offers more but must be repaid over 15 years. For maximum benefit, max out FHSA first, then use RRSP HBP for additional funds.

Can I use both FHSA and RRSP HBP together?

Yes! You can combine both programs. A single buyer can access up to $100,000 ($40K FHSA + $60K HBP). A couple can access up to $200,000 combined.

Which is better: FHSA or HBP?

FHSA is generally better because withdrawals are tax-free with no repayment required. HBP allows larger withdrawals but requires repayment over 15 years or the amounts become taxable income.

FHSA vs RRSP HBP 2026 | Which Is Better for Your Down Payment?

FHSA vs RRSP Home Buyers’ Plan

Compare Canada’s two main programs for saving for your first home down payment.

Quick Comparison

Feature	FHSA	RRSP HBP
Maximum withdrawal	$40,000	$60,000
Annual contribution	$8,000	Any amount
Tax deduction	Yes	Yes
Withdrawal taxed	No	No (if repaid)
Repayment required	No	Yes (15 years)
Carry-forward room	$8,000/year	Unlimited
Account deadline	15 years or age 71	None
Winner	Better terms	Larger amount

Side-by-Side Analysis

Tax Deduction

Factor	FHSA	RRSP
Contribution deductible	Yes	Yes
Can defer deduction	Yes	Yes
Reduces current taxes	Yes	Yes
Result	Same	Same

Withdrawal for Home

Factor	FHSA	RRSP HBP
Tax on withdrawal	None	None
Limit per person	$40,000	$60,000
Couple combined	$80,000	$120,000
Result	Limited	More room

After Purchase

Factor	FHSA	RRSP HBP
Repayment required	No	Yes
Repayment period	N/A	15 years
Miss repayment	N/A	Added to income
Result	Winner	Burden

Dollar-for-Dollar Comparison

Scenario: $50,000 in Each Account

FHSA Path:

Year	Action	Account Balance	Tax Paid
1-6	Contribute $8K/year	$48,000	-$12,000 deductions
7	Withdraw for home	$0	$0 tax
Total benefit			$12,000 saved

RRSP HBP Path:

Year	Action	Account Balance	Tax Impact
1-6	Contribute $8K/year	$48,000	-$12,000 deductions
7	Withdraw $48K for home	$0	$0 tax
8-22	Repay $3,200/year	Repaying	Must repay or taxed
Net			$12,000 saved, but must repay

The Repayment Burden

If you withdraw $60,000 from RRSP via HBP:

Year	Repayment Due	Cumulative
Year 1	$4,000	$4,000
Year 5	$4,000	$20,000
Year 10	$4,000	$40,000
Year 15	$4,000	$60,000

Miss a payment? That year’s $4,000 becomes taxable income (costing ~$1,200-$1,600 in tax).

Optimal Strategy: Use Both

Maximum Down Payment (Single Person)

Source	Amount
FHSA	$40,000
RRSP HBP	$60,000
Total	$100,000

Maximum Down Payment (Couple)

Source	Person 1	Person 2	Total
FHSA	$40,000	$40,000	$80,000
RRSP HBP	$60,000	$60,000	$120,000
Total	$100,000	$100,000	$200,000

Priority Order

FHSA first — no repayment, pure benefit
RRSP HBP second — for additional funds needed
Regular savings — if more still needed

Timeline Strategy

If Buying in 3 Years

Year	FHSA	RRSP
Year 1	$8,000	$8,000
Year 2	$8,000	$8,000
Year 3	$8,000	$8,000
Total	$24,000	$24,000
Withdrawal	$24,000 (no repay)	$24,000 (must repay)

If Buying in 5+ Years

Strategy	FHSA	RRSP
Max FHSA	$40,000	—
Then RRSP	—	As needed
Focus	FHSA priority	Supplementary

Special Situations

High Income Now, Lower Later

FHSA: Deduct now when marginal rate is high
RRSP: Consider deducting later if rate will be similar

Already Have RRSP Balance

Can use existing RRSP for HBP immediately
FHSA requires new contributions

Might Not Buy

If You Don’t Buy	FHSA	RRSP
Transfer option	To RRSP tax-free	Already in RRSP
Withdraw non-qualifying	Taxable	Taxable + withholding
Flexibility	Must use in 15 years	No deadline

Decision Flowchart

Do you have FHSA room?

Yes → Contribute to FHSA first
Maxed out → Use RRSP HBP

Need more than $40K down payment?

Yes → Use RRSP HBP for remainder
No → FHSA sufficient

Can afford HBP repayments?

Yes → HBP is fine
No → Stick to FHSA only

Tax Refund Strategy

Action	Result
Contribute $8K to FHSA	~$2,400 refund (30% bracket)
Apply refund to mortgage	Saves interest
Or reinvest refund	Compound growth