FHSA + RRSP HBP Down Payment Calculator

The $100,000 Tax-Free Down Payment

For first-time home buyers in Canada, building a down payment can feel like a steep climb. But thanks to recent updates in 2026, you can now shelter up to $100,000 using two powerful registered accounts:

• FHSA (First Home Savings Account): Up to $40,000 lifetime limit ($8,000 per year). Learn more about FHSA rules here.
• RRSP HBP (Home Buyers' Plan): Up to $60,000 withdrawal limit from your RRSP (increased from $35,000).

How the RRSP Home Buyers' Plan Works

The Home Buyers' Plan allows you to withdraw up to $60,000 from your RRSPs to buy or build a qualifying home. The withdrawal is tax-free, provided you follow the rules:

• You must be a first-time home buyer (meaning you or your spouse haven't owned a home you lived in during the past 4 years).
• Funds must have been in the RRSP for at least 90 days before withdrawal.

What Happens After You Buy? (Repayment)

Unlike the FHSA, where withdrawals are completely tax-free forever, the RRSP HBP is effectively a zero-interest loan to yourself. You have to pay it back.

You have 15 years to repay the amount withdrawn back into your RRSP. For withdrawals made between 2026 and 2028, you get a special 3-year grace period before your first repayment is due.

If you fail to make your minimum annual repayment, that amount will be added to your taxable income for that year.

Which Account Should You Fund First?

Generally, you should always max out your FHSA first ($8,000 per year). It gives you the exact same tax deduction as the RRSP, but the withdrawal is completely tax-free and doesn't need to be repaid.

Once your FHSA is maxed for the year, overflow your remaining down payment savings into your RRSP to take advantage of the $60,000 HBP limit. For a detailed comparison, see our TFSA vs RRSP guide.