The FHSA + RRSP HBP stack
Canada's newest tax shelter pairs with the existing Home Buyers' Plan for the biggest first-home tax advantage ever. Contributions to the FHSA are tax-deductible (like RRSP). Qualifying withdrawals are tax-free (like TFSA). And you can stack both:
How the FHSA works
The First Home Savings Account launched in April 2023 and combines the best of the RRSP and TFSA for first-time home buyers. Contributions are tax-deductible (reduces your income tax for the year). Qualifying withdrawals for a first home are completely tax-free — including growth.
Limits: $8,000 per year, $40,000 lifetime. Unused room carries forward up to $8,000 (so if you contribute $5,000 in year 1, you can contribute $11,000 in year 2). You must open an FHSA before age 71 and use it within 15 years or transfer the balance to an RRSP/RRIF.
The HBP stack: The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 from their RRSP tax-free, repayable over 15 years. Combined with a fully-funded FHSA, that's $100,000 of pre-tax capital toward your down payment — plus any investment growth on both accounts. Use the RRSP calculator to plan the HBP portion.
Eligibility: You must be a Canadian resident, 18+ (19+ in some provinces), and a first-time home buyer (haven't lived in a qualifying home owned by you or your spouse in the current or previous 4 calendar years).
Can I have both an FHSA and use the RRSP HBP?
Yes. Since 2023, you can use both simultaneously. The FHSA gives you $40,000 of completely tax-free capital; the HBP lets you borrow up to $60,000 from your RRSP and repay it over 15 years. Combined: $100,000 toward your first home.
What's the difference between FHSA and TFSA?
TFSA contributions aren't tax-deductible; FHSA contributions are. Both allow tax-free growth and tax-free withdrawals, but the FHSA is restricted to first-home purchases (or must be rolled into an RRSP). FHSA wins for home buying because you get the RRSP-style tax deduction on top.
What if I don't end up buying a home?
You can transfer the balance to an RRSP or RRIF — without using RRSP contribution room and tax-free. You have 15 years from opening the account or until age 71 (whichever comes first). Worst case, you get free RRSP room.
Can my spouse and I both open FHSAs?
Yes — each spouse can have their own FHSA (and use their own HBP). That's up to $200,000 combined ($80,000 FHSA + $120,000 HBP) toward a shared first home.