FHSA vs HBP

Last updated: August 6, 2024 | Reviewed by Paul Thorne

How is the FHSA different from the HBP?

You can use both a First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) to purchase a first home, provided you meet each plan’s eligibility requirements. But the main difference between an FHSA and an HBP is that the HBP requires you to repay your withdrawn funds, whereas the FHSA doesn’t require any repayment.

The HBP lets you withdraw up to $60,000 from your RRSP – couples can potentially access a total of $120,000 – to buy or build your first home in Canada. When you withdraw these funds, it’s like you’re borrowing from your RRSP. So you’re expected to pay the money back within a specific period of time. Otherwise, you’ll have to pay taxes.

With an FHSA, you can contribute up to $8,000 per year, with a lifetime contribution limit of $40,000. Your contributions are tax-deductible, and your qualifying withdrawals are tax-free  when you buy a qualifying home. You’re not borrowing any money, so there’s nothing to pay back.

Learn more about FHSA contributions

FHSA HBP
Eligibility

First-time homebuyers with a FHSA living in Canada.

See FHSA eligibility rules

First-time homebuyers with RRSPs living in Canada.

See HBP eligibility rules
Contribution limit $8,000 per year None, because you’re withdrawing from your RRSP, not contributing to a separate plan.
Maximum withdrawal You can withdraw as much as you like from your FHSA. Up to $60,000 per person.
Tax-free withdrawals

Only if you’re buying a qualifying home.

See FHSA withdrawal rules

Only if you make repayments within a specified timeframe.

See HBP withdrawal rules

Can I use the FHSA and HBP together?

Yes, you can use both to buy the same home.

Can my spouse and I both open an FHSA to buy the same home?

Yes, you and your spouse can each open your own individual FHSA. You can then use those two FHSA accounts to buy the same qualifying home so long as you’re both first-time homebuyers.

Connect with an advisor to find out what works best for your unique situation. An advisor can also address any questions or concerns you may have.

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