Can you use the FHSA and HBP together?

Yes, you can combine the FHSA ($40,000) and HBP ($60,000) for a total of $100,000 per person. A couple can accumulate up to $200,000 for their down payment.

What is the FHSA contribution limit in 2026?

The FHSA lifetime limit is $40,000, with a maximum annual contribution of $8,000. Contributions are tax-deductible and withdrawals for a qualifying home purchase are tax-free.

Is the HBP withdrawal counted as income?

No, the HBP withdrawal is not taxable at the time of withdrawal. However, it must be repaid to your RRSP over 15 years (starting the 2nd year after withdrawal). Amounts not repaid are added to your taxable income.

What happens if you don't repay the HBP?

If you don't repay the HBP on schedule, the amount due for the year is added to your taxable income. You then pay tax on that amount, just like a regular RRSP withdrawal.

Can you use the FHSA to buy a plex?

Yes, the FHSA can be used to purchase a plex as long as you occupy one of the units as your primary residence. This is a popular strategy for first-time buyer-investors in Montreal.

FHSA and HBP 2026: Maximize Your Down Payment in Canada

🎯 Calculate your buying power with FHSA + HBP

See how much you can afford by combining both programs

Calculate my capacity →

The FHSA and HBP are the two most powerful programs for first-time buyers in Canada. In 2026, they allow you to combine up to $100,000 per person for your down payment. Here’s how to maximize these programs.

🏦 FHSA 2026: The Tax-Free First Home Savings Account

$40,000

Lifetime limit

$8,000

Annual contribution max

Double tax advantage

The FHSA offers a unique double tax advantage: contributions are tax-deductible (like an RRSP) and withdrawals for purchase are tax-free (like a TFSA). It’s the best of both worlds.

💰 HBP 2026: $60,000 Per Person

$60,000

Per person

$120,000

Per couple

15 years

Repayment period

The HBP (Home Buyers’ Plan) allows you to withdraw up to $60,000 from your RRSPs tax-free for a first home purchase. Repayment is spread over 15 years.

💪 Combining FHSA + HBP: The Optimal Strategy

✅ FHSA

$40,000 max

No repayment required

Double tax advantage

💰 HBP

$60,000 max

15-year repayment

Uses existing RRSP

💡 Strategy: prioritize the FHSA (no repayment), then top up with the HBP. For a $428,000 condo with 20% down ($85,600), the FHSA covers 47% and the HBP completes the rest.

📋 Eligibility: First-Time Buyer Conditions

1. 👤 First-time buyer — Must not have owned a home in the last 4 years (FHSA) or current year + 4 preceding years (HBP)

2. 🏠 Primary residence — You must occupy the property as your primary residence

3. 🇨🇦 Canadian resident — Must have a valid SIN and be a Canadian resident

4. 📅 Age — FHSA: 18 to 71 | HBP: no age limit

🧮 Case Study: Montreal Couple Buying a Condo

Marc and Julie want to buy a $428,000 condo in MHM. Here’s their strategy:

$80,000

FHSA (2 x $40K)

$5,600

HBP (top-up)

$85,600

20% of $428,000

✅ Result: Marc and Julie reach 20% down payment, avoid CMHC insurance (~$17,000 saved) and qualify for a better mortgage rate.

Calculate your borrowing capacity with FHSA + HBP

See how much you can afford by combining assistance programs.

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