The short answer
An FHSA and the Home Buyers’ Plan are different tools. An eligible FHSA withdrawal does not require repayment. The Home Buyers’ Plan uses eligible RRSP withdrawals with repayment obligations. Both may be used for the same home if each program’s conditions are met.
CRA: FHSA participation roomFirst-year FHSA room
Room starts in the year you open your first FHSA.
FHSA lifetime limit
Track contributions and transfers across your accounts.
Home Buyers’ Plan withdrawal limit
Eligibility and RRSP withdrawal conditions still apply.
The basics
Two programs, two very different deals
A First Home Savings Account (FHSA) is a registered account for saving toward a first home. A qualifying withdrawal from it does not have to be repaid. The Home Buyers’ Plan lets you borrow from your own RRSP, a retirement savings account, and you must put the money back.
FHSA room grows each year you have the account. CRA says unused room carries forward, but only up to $8,000. So in the year after you open your first FHSA, your room can reach $16,000 if you contributed nothing the year before.
CRA says Home Buyers’ Plan repayment runs over 15 years. Under temporary relief, if your first Home Buyers’ Plan withdrawal falls between January 1, 2026 and December 31, 2028, repayment starts in the fifth year after the withdrawal year instead of the second.
Why it matters
Timing and paperwork decide whether the money qualifies
Both programs use a four-year first-time buyer test. For the Home Buyers’ Plan, CRA says you qualify if you did not live in a home you or your spouse owned as your principal residence in the current year before withdrawing (except the 30 days just before) or in the previous four calendar years.
Both also need a written agreement to buy or build a qualifying home before you withdraw. The home must be acquired or built before October 1 of the year after the withdrawal. CRA says a mortgage pre-approval alone does not count for the Home Buyers’ Plan.
How it works
Using both for one purchase
Confirm your FHSA room with CRA
Check how much participation room you have before adding more. Room starts only in the year you open your first FHSA.
Watch the RRSP timing rule
CRA says RRSP contributions made within 89 days before an Home Buyers’ Plan withdrawal may not be deductible. Avoid depositing and withdrawing the same money in a rush.
Sign the purchase agreement first
Withdraw only once you have a written agreement to buy or build. CRA also says you must not have acquired the home more than 30 days before an FHSA withdrawal.
File the right forms
Give Form RC725 to your FHSA issuer for a qualifying withdrawal. Give Form T1036 to your RRSP issuer for each Home Buyers’ Plan withdrawal.
Give providers lead time
Ask each institution how long it needs to release the funds. Your lawyer or notary needs the money in trust before completion.
Plan to close the FHSA
CRA says your FHSA participation period ends at the end of the year after your first qualifying withdrawal. Decide in advance what happens to any money left.
Avoid these
Common FHSA and Home Buyers’ Plan slip-ups
Opening an FHSA too late
Room only starts the year you open your first FHSA. Opening one early starts the clock, even before you are ready to save much.
Over-contributing
CRA charges a tax of 1% per month on excess FHSA amounts. Track contributions across all your FHSAs, since more accounts do not mean more room.
Treating a pre-approval as an agreement
For the Home Buyers’ Plan, CRA says a pre-approved mortgage is not a written agreement to buy or build. Wait for a signed contract.
Forgetting the Home Buyers’ Plan must be repaid
Repayments come out of future income for 15 years. Put them in your budget next to the mortgage payment. Our home-buying budget guide shows where they fit.
Example
How FHSA room carries forward
A hypothetical saver with assumed contributions, using CRA’s rules: $8,000 of new room each year and a carry-forward cap of $8,000.
| Year 1 room (first FHSA opened) | $8,000 |
|---|---|
| Year 1 contribution (assumed) | $5,000 |
| Unused room carried forward: $8,000 − $5,000 | $3,000 |
| Year 2 room: $8,000 + $3,000 | $11,000 |
| Year 2 contribution (assumed) | $0 |
| Year 3 room: $8,000 + carry-forward capped at $8,000 | $16,000 |
Lifetime contributions still cannot pass $40,000. Confirm your actual room with CRA before you contribute.
Questions to ask
Who to ask, and what
Your FHSA and RRSP providers
- How long do you need to process Form RC725 or Form T1036?
- Can the funds be sent straight to my lawyer or notary?
- Are there fees to withdraw or transfer?
Your lawyer or notary
- When do you need the funds in trust?
- Does my completion date fall before October 1 of the year after my withdrawal?
- What proof of the purchase agreement will my providers need?
Your tax preparer
- How do I report the FHSA withdrawal and Home Buyers’ Plan on my return?
- In which year is my first Home Buyers’ Plan repayment due?
- Have I over-contributed to any FHSA?
FAQ
Common questions
Can I use an FHSA and the Home Buyers’ Plan for the same home?
Yes. CRA says you can make a qualifying FHSA withdrawal and an Home Buyers’ Plan withdrawal for the same qualifying home, as long as you meet the conditions of each. Plan the timing and forms for both.
How much can I put in an FHSA each year?
CRA says $8,000 in the year you open your first FHSA. Unused room carries forward up to $8,000, so the most room in a single year is $16,000. The lifetime limit is $40,000.
How much can I take out under the Home Buyers’ Plan?
CRA says the current Home Buyers’ Plan withdrawal limit is $60,000. Repayment runs over 15 years. Other BC and federal help is listed on our first-time buyer programs page.
Does opening several FHSAs give me more room?
No. Your participation room covers all your FHSAs combined. Amounts over your room are taxed at 1% per month until removed.
When does my first Home Buyers’ Plan repayment start?
For first withdrawals from 2026 through 2028, CRA says the 15-year repayment period starts in the fifth year after the withdrawal year. Its example: a first withdrawal in 2026 means your first repayment year is 2031.
