FHSA vs Home Buyers’ Plan: Can You Use Both?

First-time home buyers may be able to use a First Home Savings Account (FHSA) and the RRSP Home Buyers’ Plan (HBP) toward the same qualifying home. The accounts work differently: a qualifying FHSA withdrawal is not repaid, while HBP withdrawals must generally be repaid to an RRSP over time.

This guide summarizes general federal rules for Canadian residents. It is educational information, not tax, mortgage or investment advice. Eligibility depends on your circumstances, account history and the home purchase. Check current Canada Revenue Agency (CRA) rules before acting.

How the FHSA and HBP differ

• FHSA: Eligible contributions are generally deductible. If you meet the qualifying-withdrawal conditions, you can take money out tax-free to buy or build a qualifying home. A qualifying withdrawal does not have to be repaid.
• HBP: You withdraw eligible savings from your RRSP to buy or build a qualifying home. You generally repay the amount to an RRSP over a 15-year period. The amount not repaid as required may have to be included in income.

For 2026, the HBP withdrawal limit is up to $60,000 per eligible participant. The limit does not determine your eligibility or mean that taking the maximum is appropriate for your situation.

Can you use both for the same home?

Yes. CRA allows an eligible person to make a qualifying withdrawal from an FHSA and an HBP withdrawal from an RRSP for the same qualifying home, provided the conditions for each withdrawal are met. Each account has its own forms, eligibility tests and timing rules. A qualifying FHSA withdrawal is generally made using Form RC725; an HBP request uses Form T1036.

Using both may increase the amount available for a purchase, but it also means planning around different rules. The FHSA withdrawal is not repayable. HBP amounts are repayable, and those repayments compete with other uses for future savings.

HBP repayments: check the 2026 timing rule

The standard HBP repayment period is up to 15 years. A temporary repayment relief rule applies to eligible first HBP withdrawals made from January 1, 2026 through December 31, 2028: the first repayment year is deferred to the fifth year after the year of the first withdrawal. For example, CRA says a first withdrawal made in 2026 has a first repayment year of 2031.

Check the repayment schedule CRA provides for your own HBP participation. If you do not repay the required amount for a year, the shortfall is generally included in your taxable income for that year. Do not assume that the temporary deferral applies to a withdrawal outside the stated dates.

Compare eligibility and timing before planning a down payment

The definition of a first-time home buyer for an FHSA and the HBP is not identical in every situation. A spouse or common-law partner’s home ownership can matter, and the relevant time periods and conditions differ. FHSA qualifying withdrawals also require conditions tied to a written home purchase or construction agreement, residency, intended occupancy and the withdrawal date.

Before relying on either plan, check:

• Whether you meet the current eligibility test for the account or withdrawal;
• Your available FHSA participation room and RRSP balance;
• How much HBP repayment you would need to budget for later;
• The purchase agreement and withdrawal timelines;
• Whether you have made a prior HBP withdrawal and what repayment schedule applies; and
• Which forms your FHSA and RRSP issuers require.

A practical way to compare the options

List the amount available from each plan, the required dates, and any future repayments. Consider how an HBP repayment schedule would fit with mortgage payments, emergency savings and other financial goals. Confirm tax deductions and repayment details with CRA or a qualified tax professional; an advisor can help you understand product and planning questions within their licensing and scope.

Read CRA’s guidance on the Home Buyers’ Plan, HBP repayments, and FHSA withdrawals. Smile Insurance also has an FHSA planning overview, an RRSP overview, and our guide to what happens if you do not buy a home with your FHSA.

For general savings-planning questions, you can request a conversation with Smile Insurance. Before sending private financial or tax information through a general form, ask which secure channel to use.