RRSP Home Buyers' Plan and FHSA for Burnaby Buyers in 2026

Almost every first-time buyer I sit down with in Burnaby asks the same question in a different way: where does the down payment actually come from? Two federal programs answer a good chunk of it, and most people I meet are only using one, or neither, because nobody walked them through how the two fit together.

The two programs, in one sentence each

The RRSP Home Buyers' Plan (HBP) lets you pull money out of your own RRSP, tax-free, toward a first home, as long as you pay it back over time. The First Home Savings Account (FHSA) is built for exactly this: a tax deduction going in, like an RRSP, and a withdrawal that comes out completely tax-free, like a TFSA, with nothing to repay.

They are not competitors. In most cases you should use both.

RRSP Home Buyers' Plan: the current numbers

As of April 16, 2024, the CRA raised the HBP withdrawal limit to $60,000 per person, up from the old $35,000 cap. If you and your partner both qualify as first-time buyers, you can each pull $60,000, for a combined $120,000 toward the same home.

A few conditions matter more than people expect:

• You need to be a first-time buyer. The CRA's actual test is narrower than the name suggests: you (or your spouse) must not have owned and lived in a home as your principal residence in the current calendar year or the four calendar years before that. Owned a place a decade ago but not since? You likely still qualify.
• The RRSP contribution needs seasoning. Money you put into an RRSP must sit there at least 90 days before you withdraw it under the HBP, or that portion won't count. Get the contribution in early.
• You have a closing deadline. You must buy or build the qualifying home before October 1 of the year following the year you withdraw.
• Repayment is spread over 15 years. For a withdrawal made in 2026, repayments begin in 2028, one-fifteenth of what you took out each year. Miss a year's minimum and the CRA adds that amount straight to your taxable income, so it isn't optional in practice.

(Source: CRA, Home Buyers' Plan and How to participate in the HBP.)

FHSA: the current numbers

The FHSA lets you contribute up to $8,000 per year, with a $40,000 lifetime maximum. Unused room carries forward, up to $8,000 worth, so a late start isn't a lost cause, but your contribution room only begins the year you open the account. Opening one now, even with a small deposit, starts the clock.

The account can stay open for up to 15 years, until the end of the year you turn 71, or until the end of the year after your first qualifying withdrawal, whichever comes first. Contributions are tax-deductible like an RRSP, and a qualifying withdrawal toward your first home, plus any growth inside the account, comes out with no tax owing and nothing to repay.

(Source: CRA, First Home Savings Account.)

Can you actually use both on the same home?

Yes, and this trips people up because the original 2022 draft legislation said you'd have to pick one. That changed before the FHSA launched. The CRA has since confirmed, in writing, that Parliament's intent was to let a buyer use both for the same qualifying home, as long as each program's own conditions are met independently. You don't choose between them. You stack them.

Run the math and the ceiling gets real: $60,000 from the HBP plus $40,000 from the FHSA is $100,000 toward one down payment, before a dollar of regular savings. For a couple who both qualify and have both accounts funded, the combined figure can reach $200,000. On a Burnaby condo, that kind of down payment changes your mortgage insurance situation, your monthly payment, and your cushion on closing.

How I'd sequence it for a Burnaby buyer

If you're a few years out, open an FHSA first, even with a small deposit, because contribution room only starts once the account exists. It's the more efficient dollar: deductible going in, tax-free coming out, nothing to repay.

The RRSP side works differently. The HBP lets you redirect retirement savings toward a home now, but it's a loan to yourself, not free money. Every dollar withdrawn needs a matching repayment for 15 years, and if your income dips right after buying, a common pattern once a new mortgage payment lands, those repayments compete with everything else in your budget. I'd rather see a buyer max the FHSA first, since it costs nothing to pay back, and use the HBP to fill the gap.

One more note for anyone eyeing a condo in a spot like Metrotown: run your combined down payment and the resulting mortgage through a real mortgage calculator before you set your budget. The size of your down payment changes whether you're paying default insurance, and that premium adds up over the life of the loan.

Where this can go wrong

The most common mistake is contributing to an FHSA or RRSP right before you need the money, missing the 90-day rule or misjudging how long a financial institution takes to release funds. The second is treating the HBP withdrawal as a gift instead of a loan, and building a budget that ignores repayments starting two years later. Neither mistake is fatal if you catch it early, and both are avoidable with a plan built six to twelve months before you start shopping.

Key Takeaways

• The HBP lets a first-time buyer withdraw up to $60,000 from their RRSP tax-free ($120,000 per qualifying couple), repayable over 15 years starting the second year after withdrawal.
• The FHSA allows $8,000 in contributions per year up to a $40,000 lifetime limit, with unused room carrying forward, and qualifying withdrawals come out completely tax-free with no repayment.
• The CRA has confirmed both programs can be used toward the same home purchase, for a combined $100,000 per qualifying buyer.
• RRSP contributions need 90 days in the account before an HBP withdrawal counts, and the home must close before October 1 of the year after you withdraw.
• Open an FHSA as early as possible, since contribution room only starts accruing once the account exists.

Frequently Asked Questions

How much can I withdraw under the RRSP Home Buyers' Plan in 2026?

Up to $60,000 per qualifying first-time buyer, a limit the CRA set on April 16, 2024. Couples who both qualify can withdraw $60,000 each, for a combined $120,000 toward one qualifying home purchase, as confirmed on the CRA's Home Buyers' Plan page.

Can I use the FHSA and the HBP together for the same home?

Yes. Despite earlier draft rules suggesting otherwise, the CRA has confirmed both programs can apply to the same qualifying home purchase, provided you meet each program's conditions separately. Combined, that's up to $100,000 per qualifying buyer.

Do I have to pay back my FHSA withdrawal like the HBP?

No. A qualifying FHSA withdrawal, including any investment growth inside the account, is permanently tax-free with no repayment schedule. The HBP, by contrast, is a withdrawal from your own RRSP that you must repay over 15 years.

What counts as a first-time buyer for these programs?

For both the HBP and the FHSA, you generally can't have owned and lived in a home as your principal residence, or lived in one owned by your spouse, in the current year or the four calendar years before it. Check the exact wording on the CRA pages before you rely on it for your situation.

Sources

• CRA: Home Buyers' Plan (HBP): withdrawal limit, eligibility, repayment rules.
• CRA: How to participate in the Home Buyers' Plan: 90-day rule, closing deadline, repayment start date.
• CRA: First Home Savings Account (FHSA): annual and lifetime contribution limits, account duration.

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Stacking the HBP and the FHSA is a math exercise, but choosing the right home in Burnaby is a strategy exercise, and that's where I can help. If you're weighing what a $100,000 or $200,000 combined down payment actually buys you in today's market, reach out directly and we'll run the real numbers together. If you already own and are thinking about what a move would look like, start with a no-obligation valuation. You can also call or text me at 778-991-0051.

Jersey Li, The Apartment Guy® · Medallion Club Member (Top 10% REALTOR®, 2024 & 2025) · Jersey Li Personal Real Estate Corporation, Sutton Group - 1st West Realty.