What's the difference between the FHSA and the RRSP HBP?

Both give you a tax deduction when you contribute and tax-free access to the funds for a qualifying first-home purchase. The key difference: FHSA withdrawals are completely tax-free with no repayment; RRSP HBP withdrawals must be repaid to your RRSP over 15 years or the unpaid amount is added to your taxable income each year.

Can I use both the FHSA and the RRSP HBP for the same purchase?

Yes. Since 2023, you can combine them: up to $40,000 from your FHSA (lifetime limit) plus up to $60,000 from your RRSP via HBP = $100,000 total per person. Both spouses can use their own accounts for a combined $200,000.

What happens if I don't repay the HBP on time?

The minimum repayment is the HBP balance divided by remaining years (or at least 1/15 per year). If you miss a year's repayment, that amount is added to your taxable income for that year — effectively treating the missed repayment as an RRSP withdrawal.

What is the FHSA annual and lifetime limit?

Annual contribution limit: $8,000. Lifetime contribution limit: $40,000. Unused annual room carries forward (maximum $8,000 carry-forward at a time). The FHSA must be closed within 15 years of opening, or by age 71, whichever comes first.

What is the current RRSP HBP withdrawal limit?

The HBP limit was increased in Budget 2024 from $35,000 to $60,000 per person for qualifying purchases made on or after April 16, 2024. The 15-year repayment period begins the second year after the year of withdrawal.

Should I open an FHSA even if I don't plan to buy for several years?

Yes — opening the FHSA starts the clock on your carry-forward room. You cannot retroactively earn room for years before opening. Even contributing a small amount in year 1 lets you bank $8,000/year of room for future contributions.

How does the opportunity cost comparison work?

If you use the RRSP HBP instead of investing those funds, you forgo growth on the withdrawn amount. The calculator estimates the opportunity cost by projecting RRSP funds at a 5% annual return over your time horizon — showing what those dollars would have grown to if left invested.

FHSA vs RRSP Home Buyers' Plan (HBP) Calculator

Finance· 37 tools

Free FHSA vs RRSP HBP calculator for Canadian first-time home buyers. FHSA allows up to $40K tax-free (no repayment); the RRSP Home Buyers' Plan lets you withdraw up to $60K but requires 15-year repayment. See total tax deduction value by province, net opportunity cost of locking RRSP funds, and the combined FHSA + HBP strategy reaching $100K. Uses 2025 CRA-confirmed contribution limits and provincial marginal rates.

Annual income (CAD)

Province

Years until purchase

Target down payment (CAD)

Current FHSA balance (CAD)

RRSP balance to tap (CAD)

FHSA: $8K/yr · $40K lifetime · no repayment

HBP: up to $60K · repay over 15 yrs (starting yr 2)

Combined max: $40K (FHSA) + $60K (HBP) = $100K per person

Combined marginal rate (ON)

29.6%

used to value tax deductions

FHSA

no repayment

$40,000

withdrawn

Tax saved: $11,860

40% of $100,000 goal

HBP

repay $2,000/yr

$30,000

withdrawn

Tax saved: $8,895

Repay: $30,000

30% of $100,000 goal

Combined

FHSA + HBP

$70,000

withdrawn

Tax saved: $11,860

Repay: $30,000

70% of $100,000 goal

HBP opportunity cost (5% assumed growth, 5 yrs)

RRSP withdrawn for HBP$30,000

Growth foregone$8,288

HBP repayment burden$30,000 over 15 yrs

Recommended approach

Max FHSA first (no repayment, no opportunity cost). If the $40,000 FHSA lifetime cap isn't enough, add RRSP HBP for up to $60,000 more. Combined ceiling: $100,000 per person, $200,000 for a couple.

Updated for 2026 · CRA-confirmed · Estimates only · verify contribution room in CRA My Account before filing.

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

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