The quick verdict: FHSA first, HBP as backup
For most first-time buyers, the optimal order is clear: max out the FHSA first, because its withdrawal never has to be repaid, then top up with the HBP if the targeted down payment requires it. The FHSA allows $8,000 of contributions per year up to $40,000 over a lifetime, deductible from taxable income, with a final withdrawal that is tax-free. The HBP allows you to withdraw up to $60,000 from your RRSP (for withdrawals made since April 16, 2024), repayable over 15 years starting the second year after the withdrawal. Both can be combined for the same purchase: up to $100,000 per person, $200,000 for a couple, not counting the returns accumulated in the accounts. The fundamental difference: the HBP is a loan to yourself that puts money you already saved back to work; the FHSA is a net tax gain, a deduction going in and zero tax coming out.
The nuance that changes everything: a dollar withdrawn from the HBP must go back into your RRSP over 15 years, while you are already paying a mortgage. A dollar withdrawn from the FHSA is yours to keep. With an equal tax deduction going in, the FHSA therefore almost always wins. The HBP becomes attractive again when the FHSA is full, or when you already have a well-funded RRSP and a short buying horizon.
The FHSA: the tax gift
The FHSA lets you contribute $8,000 per year, up to $40,000 over a lifetime. Contributions are tax-deductible like an RRSP, growth is tax-sheltered, and the withdrawal for an eligible first home is entirely tax-free, with no repayment. It is the only account in Canada that combines the advantages of the RRSP and the TFSA on the same dollar.
We devoted a complete guide to it: the FHSA explained for Quebec buyers, with the opening rules, the carry-forward of contribution room and the strategies depending on your buying horizon. The essential point to remember here: contribution room only starts accumulating once the account is open. Open it early, even with a small amount, to start the clock.
The HBP: the loan to yourself
The HBP (Home Buyers' Plan) lets you withdraw up to $60,000 from your RRSPs without immediate tax to buy a first home, a ceiling raised from $35,000 to $60,000 by the 2024 federal budget. The trade-off: everything must be repaid to the RRSP over 15 years, one fifteenth per year, after a grace period of about two years.
Every missed annual repayment is added to your taxable income for the year. The HBP shines in one specific case: you have already accumulated a substantial RRSP (often through employer contributions) and the purchase is near. The money is already there, already deducted; the HBP frees it up for the down payment without an immediate tax bill.
HBP vs FHSA: the comparison in one table
| Criterion | FHSA | HBP |
|---|---|---|
| Ceiling | $40,000 lifetime ($8,000/year) | $60,000 per withdrawal |
| Repayment | None, ever | Over 15 years, 1/15 per year |
| Tax deduction | Yes, at contribution | Yes (through the RRSP, already taken) |
| If not repaid | Not applicable | The 1/15 becomes taxable |
| Ideal for | Building the down payment over a few years | Unlocking an RRSP that is already funded |
Federal rules in force in 2026, harmonized in Quebec. Every tax situation is unique: validate with your institution or your accountant.
Combining both: up to $200,000 as a couple
The FHSA and the HBP can be combined for the same purchase since 2023. One person can mobilize up to $100,000 (a full $40,000 FHSA and $60,000 of HBP), a couple up to $200,000. The winning sequence: max out the FHSA every year, contribute to the RRSP in parallel if there is room, then draw on the RRSP through the HBP at the time of purchase.
On a $500,000 property, a couple that combines both programs can aim for a 20% down payment and avoid the mortgage insurance premium entirely, which costs several thousand dollars. And once the down payment is settled, there is still the welcome tax: good news, Quebec now refunds it up to $5,875 to first-time buyers.
The traps that cost money
The three most frequent mistakes: opening the FHSA too late (the $8,000 per year of room only accumulates after the account is opened), forgetting that the FHSA has a maximum life of 15 years after opening, and underestimating the weight of HBP repayments in the budget of the years that follow the purchase.
- The FHSA clock starts at opening. Even $100 is enough to open the account and start accumulating room. Every year of waiting is $8,000 of room lost forever (only one $8,000 carry-forward is allowed).
- The FHSA expires. The account must be closed no later than 15 years after opening (or at age 71). Without a purchase, the funds transfer to the RRSP without penalty, but planning matters.
- The HBP is repaid while you carry a mortgage. One fifteenth of $60,000 is $4,000 a year to put back into the RRSP on top of the mortgage payments. Budget for it before buying, not after.
The HBP is called RAP in French and the FHSA, CELIAPP. Our guide RAP ou CELIAPP covers the same comparison for a French-speaking reader, and our first-time buyer programs guide lists every incentive available in Quebec in 2026.
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Frequently asked questions about the HBP and the FHSA
Can you combine the HBP and the FHSA for the same house?
Yes, since 2023 both programs can be combined for the same purchase, provided you follow the rules of each. A first-time buyer can therefore mobilize up to $100,000 ($40,000 of FHSA and $60,000 of HBP), and a couple up to $200,000. It is the most powerful strategy for building a down payment in Quebec, but it requires years of planned contributions.
Do you have to repay the FHSA after the purchase?
No, never. That is the big difference with the HBP: the money withdrawn from the FHSA for an eligible first home is yours, permanently, with no repayment at all. The contributions gave a tax deduction going in and the withdrawal is tax-free coming out. The HBP, on the other hand, must be put back into your RRSP over 15 years.
How much can you withdraw with the HBP in 2026?
Up to $60,000 per person, since the 2024 federal budget raised the ceiling that used to be $35,000. A couple can therefore draw up to $120,000 from their RRSPs. The withdrawal is made without immediate tax, but it must be repaid to the RRSP at one fifteenth per year over 15 years, with a two-year grace period before the first payment.
What happens if you do not repay your HBP?
Every year the minimum repayment (one fifteenth of the amount withdrawn) is not put back into the RRSP, that amount is added to your taxable income for the year. You therefore lose the tax advantage little by little. It is the main trap of the HBP: build the repayment into your budget from the day you buy, on top of the mortgage and the taxes.
General information as of September 13, 2026, under the rules of the Canada Revenue Agency (HBP ceiling raised to $60,000 in the 2024 federal budget; FHSA in force since 2023) and harmonized by Revenu Québec. This is not tax advice: validate your strategy with your accountant or your financial institution. See also our guide to the promise to purchase.