Most first-time buyers in Ontario have heard of the FHSA and the HBP but aren't sure how they compare - or that you can use them together.
Short version: use both. They're complementary, not competing.
The FHSA in 60 seconds
- Save up to $8,000/year, $40,000 lifetime
- Contributions are tax-deductible (just like an RRSP)
- Growth is tax-free (just like a TFSA)
- Withdrawals for a qualifying first home are tax-free
- Unused contribution room carries forward (up to $8,000)
It's the only account in Canada that gives you the tax deduction and tax-free withdrawal. That's the magic.
The HBP in 60 seconds
- Borrow up to $60,000 from your RRSP, tax-free
- Must repay over 15 years starting in year 2
- Existing RRSP contributions still get the deduction in their original year
Which should you use first?
If you have to choose one, the FHSA wins. You get the deduction and never have to pay it back.
If you have the savings capacity, do both. Max your FHSA at $8K/year, and contribute to your RRSP for the HBP. Combined, you can stack $100,000+ of tax-advantaged down payment.
A simple plan
- Open an FHSA today (literally takes 5 minutes online)
- Contribute as close to $8,000/year as you can
- Once your FHSA is meaningful, start adding RRSP for the HBP
- When you're ready to buy, withdraw from both
Talk it through
Want help mapping this out around your real income, savings, and timeline? Book a free first-time buyer consultation.