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First Home Ontario
NEW BUILD & NEW HOME BUYER CENTRE
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Scenario Guide

Can I Use My FHSA and RRSP HBP Together in Ontario?

The Short Answer: Yes, Absolutely

TL;DR: As of 2026, you can legally combine withdrawals from both your First Home Savings Account (FHSA) and your RRSP Home Buyers' Plan (HBP) for the same qualifying home purchase.

When the FHSA was originally proposed, draft legislation suggested buyers would have to choose between the FHSA and the HBP. However, the final legislation passed by the federal government removed this restriction. Today, a single buyer can withdraw up to $40,000 tax-free from their FHSA (assuming 5 years of maximum contributions) AND up to $60,000 tax-free from their RRSP under the enhanced HBP limits introduced in recent budgets.

The $200,000 Down Payment Strategy for Couples

For couples purchasing their first home together in Ontario, the math becomes incredibly powerful. Because both the FHSA and HBP have individual limits, two qualifying first-time buyers can pool their resources:

  • Partner 1: $40,000 (FHSA) + $60,000 (HBP) = $100,000
  • Partner 2: $40,000 (FHSA) + $60,000 (HBP) = $100,000

Combined, a couple can deploy up to $200,000 in tax-advantaged capital toward their down payment. In markets like Toronto or the GTA, where the average pre-construction townhome or detached home easily exceeds $900,000, stacking these accounts is often the only mathematically viable path to reaching a 20% down payment and avoiding CMHC insurance premiums.

Key Deadlines and Repayment Rules

While both accounts help you buy a house, they follow completely different rules after the purchase:

FHSA: The withdrawal is purely tax-free. You do not have to pay it back. It functions like a TFSA on the way out.

RRSP HBP: This is a loan to yourself. You must begin repaying the borrowed $60,000 back into your RRSP starting the fifth year after your withdrawal (the repayment grace period was extended to 5 years for withdrawals made between 2022 and 2025, and continues into 2026). You then have 15 years to repay it in full.

Timing Your Withdrawals

You must complete your withdrawals from both accounts within 30 days of moving into your qualifying home. If you are buying a pre-construction property, you typically make these withdrawals at the time of final closing, not interim occupancy. Always consult with your real estate lawyer to properly time your land transfer tax rebate applications alongside these withdrawals.