The FHSA + Home Buyers' Plan Stack: How to Access $200,000 Tax-Free

For decades, the Canadian government forced first-time home buyers to rely on the Home Buyers' Plan (HBP)—letting you borrow from your RRSP. Then came the First Home Savings Account (FHSA), which is arguably the strongest tax shelter in Canadian history.

The best-kept secret? You can use both on the exact same home purchase.

By "stacking" these accounts, a couple purchasing their first home in Ontario can access up to $200,000 in specialized, tax-advantaged funds without paying a cent to the CRA upon withdrawal.

The Math: How to Reach $200,000

Let's break down the maximum limits in 2026:

The FHSA Limit: A lifetime maximum of $40,000 per person.
The HBP Limit: The recent federal budget increased the RRSP withdrawal limit to $60,000 per person.

If you are buying alone, that equals $100,000. If you are buying with a partner (who is also a first-time home buyer), you combine your accounts: $40K + $40K + $60K + $60K = $200,000.

Not sure how your specific timeline looks? Use our FHSA Savings Stacker to generate a personalized timeline.

The Sequencing Strategy (Crucial)

If you only have limited funds to save each year, the order in which you contribute matters tremendously. Always max out the FHSA before putting a single dollar into your RRSP for a down payment.

Why? An RRSP HBP withdrawal is a loan. The CRA forces you to repay that $60,000 back into your RRSP over 15 years. An FHSA withdrawal is a gift. The $40,000 is tax-free on withdrawal and never has to be repaid.

Funding the RRSP with FHSA Refunds

Here is an advanced wealth-building play for high-income earners:

Contribute $8,000 to your FHSA.
When tax season arrives, that $8,000 contribution yields a tax refund (e.g., ~$2,400 if you're in a 30% tax bracket).
Take that $2,400 return from the CRA and immediately deposit it into your RRSP.
That RRSP contribution then acts toward your HBP balance, and simultaneously lowers your taxable income again for the following year.

By snowballing your tax refunds, you are essentially using the government's own money to build your down payment faster.

Frequently Asked Questions

If my partner owned a home previously, can I still use my FHSA?

Yes, you can still use your personal FHSA to purchase the home, provided you individually meet the first-time home buyer definition.

Do I have to pay back the FHSA?

No. Unlike the RRSP Home Buyers' Plan, an FHSA qualifying withdrawal is completely tax-free and has no repayment mechanism.

Can I transfer RRSP funds directly into an FHSA?

Yes, you can transfer funds from your RRSP to your FHSA tax-free, but doing so will not give you a second tax deduction, nor will it reinstate your RRSP contribution room.