FHSA vs RRSP Home Buyers’ Plan 2026: Full Guide
Canada FHSA vs RRSP Home Buyers’ Plan in 2026: Which Is Better, and Can You Use Both?
Canada | October 22, 2026
A couple in Canada wants to purchase its first home.
One partner has been contributing to a First Home Savings Account.
The other has accumulated savings in a Registered Retirement Savings Plan.
They have heard that the FHSA provides a tax deduction and tax-free withdrawals.
They also know that the Home Buyers’ Plan allows eligible people to withdraw money from an RRSP without immediate tax.
But which program should they use?
And can they combine the two?
In 2026, eligible first-time home buyers can potentially access $40,000 of FHSA contributions and $60,000 through the RRSP Home Buyers’ Plan per person, assuming they have accumulated the necessary funds and meet the applicable withdrawal rules.
For a qualifying couple, that can mean a combined $200,000 before considering investment growth.
However, the two programs do not provide identical benefits.
The FHSA generally combines deductible contributions with qualifying tax-free withdrawals and no repayment requirement.
The Home Buyers’ Plan, or HBP, provides temporary tax-free access to RRSP savings that must generally be repaid over fifteen years.
There is also an important 2026 rule update: the CRA states that eligible participants who first withdraw under the HBP in 2026, 2027 or 2028 benefit from the extended repayment deferral.
This guide explains the verified contribution limits, eligibility conditions, examples and mistakes buyers should understand before moving their savings.
1. What is a First Home Savings Account?
The First Home Savings Account, or FHSA, is a Canadian registered savings arrangement intended to help eligible individuals save toward their first qualifying home.
An eligible person can contribute to an FHSA within their available participation room.
Qualifying contributions generally create an income-tax deduction.
Investments can grow inside the account on a tax-sheltered basis.
When the withdrawal satisfies the program's qualifying-home conditions, the withdrawn funds are not included in taxable income.
Unlike an HBP withdrawal, a qualifying FHSA withdrawal does not need to be repaid.
The account combines features commonly associated with RRSP deductions and TFSA-style qualifying tax-free withdrawals.
But its eligibility, time limits and contribution-room rules are different from those of both RRSPs and TFSAs.
2. What is the RRSP Home Buyers’ Plan?
The Home Buyers’ Plan permits eligible individuals to withdraw funds from their own RRSPs to buy or build a qualifying home.
The withdrawal is not included in income when the HBP requirements are satisfied.
The program currently permits up to $60,000 per eligible participant.
Unlike a qualifying FHSA withdrawal, an HBP withdrawal is not permanently tax-free without further obligations.
The participant generally must repay the eligible amount to an RRSP, PRPP or eligible specified pension plan according to the prescribed schedule.
Missing a required annual repayment can cause the shortfall to be included in taxable income.
The HBP is therefore a way to access retirement savings for a qualifying home purchase, not a government grant.
3. FHSA versus HBP comparison table
| Feature | FHSA | RRSP Home Buyers’ Plan |
|---|---|---|
| Program type | Registered first-home savings account | Qualifying withdrawal program using existing RRSP funds |
| Annual limit | $8,000 initial annual participation room | No separate HBP annual contribution allowance |
| Lifetime / withdrawal limit | Generally $40,000 lifetime contribution limit | Up to $60,000 per HBP participation |
| Tax benefit when saving | Eligible FHSA contributions generally deductible | RRSP contributions subject to normal RRSP deduction rules |
| Qualifying home withdrawal | Tax-free | Not taxed when qualifying |
| Repayment | No repayment required | Generally 15-year repayment schedule |
| 2026 first HBP withdrawal | Not applicable | First required repayment generally in 2031 |
| Home-buyer eligibility | FHSA-specific rules | HBP-specific rules |
| Can both fund one home? | Yes | Yes |
| Main advantage | Tax deduction plus permanent qualifying tax-free use | Access to existing RRSP savings |
| Main drawback | Contribution and time restrictions | Must rebuild withdrawn retirement savings |
The correct choice depends on available funds, eligibility, purchase timing, tax circumstances and retirement-planning needs.
4. FHSA contribution limits in 2026
The CRA confirms an $8,000 FHSA participation room in the year a person opens their first FHSA.
The general lifetime contribution limit is $40,000.
Unused FHSA participation room may be carried into a later year, subject to a maximum carryforward of $8,000 and the overall applicable limits.
For example, an individual who opens an FHSA in 2026 but contributes nothing that year may have $16,000 of participation room in 2027, assuming no other transactions affect the calculation.
A person who contributes $8,000 in 2026 generally receives a further $8,000 of room in 2027, subject to applicable limits.
Contribution room starts when the first FHSA is opened, not automatically at age eighteen.
A person who waits to open an account does not earn FHSA participation room for earlier unopened years.
5. FHSA contribution example over five years
Consider an individual who opens an FHSA in 2026 and contributes $8,000 in each of five years.
| Calendar year | Contribution | Cumulative contributions |
|---|---|---|
| 2026 | $8,000 | $8,000 |
| 2027 | $8,000 | $16,000 |
| 2028 | $8,000 | $24,000 |
| 2029 | $8,000 | $32,000 |
| 2030 | $8,000 | $40,000 |
This example assumes the person remains eligible to participate, makes no other FHSA contributions or transfers, and does not experience transactions affecting room.
The $40,000 represents contributed principal.
If the FHSA investments earn returns, the account's market value may be higher.
The FHSA does not impose a simple $40,000 ceiling on the amount of a qualifying withdrawal when valid investment growth has increased the account balance.
Market losses can also reduce the amount available.
6. Can you contribute $16,000 to an FHSA in one year?
Potentially, yes.
But an account holder cannot automatically contribute $16,000 in the same calendar year as opening the first FHSA.
In the initial year, participation room generally begins at $8,000.
If unused room is carried forward from an earlier participation year, it can increase the available room in a subsequent year.
The amount of unused participation room carried forward is generally limited to $8,000.
That means a later year's ordinary $8,000 allocation plus $8,000 of eligible carried-forward room can create $16,000 of contribution capacity, subject to the lifetime and detailed CRA rules.
Check the FHSA participation-room statement in CRA My Account rather than relying only on a manually prepared spreadsheet.
7. FHSA contributions and tax deductions
Eligible new FHSA contributions generally produce a tax deduction.
For illustration, suppose an eligible taxpayer contributes $8,000 and has a combined federal and provincial marginal tax rate of 30%.
The approximate tax reduction attributable to a fully usable $8,000 deduction would be:
$8,000 × 30% = $2,400.
This is a simplified example.
Actual tax savings depend on income, province, tax brackets, available deductions and other circumstances.
An FHSA deduction is not a universal 30% government bonus.
The deductible amount can also be carried forward for use in an eligible future tax year, subject to CRA requirements.
The ability to defer a deduction can be useful when the person expects higher taxable income later.
8. Does the FHSA have an RRSP-style first-60-days contribution deadline?
No.
The FHSA contribution treatment is different from the RRSP's familiar first-60-days rule.
A contribution to an FHSA generally belongs to the calendar year in which it is made.
For example, an FHSA contribution made in January 2027 is not treated as a 2026 FHSA contribution merely because it was made early in the next year.
RRSP deductions follow their own contribution-period and deduction rules.
Do not confuse the two accounts when scheduling year-end contributions.
Accurate dates matter for contribution room and tax reporting.
9. HBP withdrawal limit in 2026: $60,000
The current Home Buyers’ Plan maximum withdrawal is $60,000 per eligible participant.
This is higher than the former $35,000 limit.
Eligible individuals purchasing a qualifying home together can each participate using their own RRSP savings.
For example, if two eligible purchasers each withdraw $60,000, their combined HBP funds could total $120,000.
This assumes both have enough eligible RRSP funds and meet the withdrawal conditions.
It does not mean a couple can withdraw $120,000 from one person's RRSP under a single person's HBP limit.
The relevant maximum applies to each eligible participant.
10. Can you use FHSA and HBP for the same home?
Yes.
The CRA explicitly permits eligible buyers to make a qualifying FHSA withdrawal and participate in the HBP for the same qualifying home, provided each program's conditions are met.
This is one of the most useful aspects of Canada's first-home saving framework.
The buyer does not have to choose one program simply because they are using the other.
However, the FHSA and HBP have separate forms, residency rules, timing requirements and eligibility definitions.
A qualifying FHSA withdrawal does not automatically make the person eligible for HBP participation.
The reverse is also true.
Confirm both sets of requirements before withdrawing.
11. Example: combining $40,000 FHSA and $60,000 HBP
Suppose one buyer has:
$40,000 in an FHSA available for qualifying withdrawal.
$60,000 in eligible RRSP funds available under the HBP.
The buyer may potentially access:
$40,000 + $60,000 = $100,000.
The FHSA portion does not require repayment after a qualifying withdrawal.
The HBP portion generally must be repaid.
If the account holder has earned $5,000 of net FHSA investment returns, the qualifying FHSA withdrawal could potentially be $45,000, giving $105,000 combined with the $60,000 HBP amount.
The additional $5,000 is not another contribution.
It represents investment growth.
The investment balance and qualifying withdrawal requirements must be verified before closing.
12. Example: eligible couple using both programs
Consider two eligible individuals purchasing a home together.
Each has:
$40,000 available in an FHSA.
$60,000 available through their own RRSP under the HBP.
| Funding source | Buyer A | Buyer B | Combined |
|---|---|---|---|
| FHSA qualifying withdrawal | $40,000 | $40,000 | $80,000 |
| HBP withdrawal | $60,000 | $60,000 | $120,000 |
| Total | $100,000 | $100,000 | $200,000 |
This maximum illustration assumes the individuals independently satisfy eligibility rules.
Marriage or joint purchase does not create additional FHSA contribution room for either person.
The amounts also do not include potential investment returns, other savings or closing expenses.
Mortgage qualification is a separate matter.
13. Does the HBP require repayment?
Yes.
A qualifying HBP withdrawal must generally be repaid over a period not exceeding fifteen years.
The required annual repayment is based on the outstanding HBP balance and the remaining repayment period.
The repayment is made through eligible contributions to the designated registered plan.
The taxpayer then identifies the amount as an HBP repayment when filing their tax return.
A repayment does not produce a second RRSP deduction.
If the required repayment is not made, the applicable shortfall is generally included in taxable income.
The program therefore helps with immediate home-purchase cash flow but creates future savings obligations.
14. Important 2026 change: repayments beginning in 2031
The CRA confirms a temporary HBP repayment-deferral extension for people making their first withdrawal during 2026–2028.
The 15-year repayment period begins in the fifth year following the year of first withdrawal rather than the ordinary second-year timing.
| First HBP withdrawal year | First required repayment year |
|---|---|
| 2026 | 2031 |
| 2027 | 2032 |
| 2028 | 2033 |
The extension does not cancel the obligation to repay.
It moves the beginning of the mandatory repayment period for qualifying participants.
Buyers should check their personal HBP repayment schedule in CRA records.
Do not apply this particular deferred start date to unrelated withdrawal years without checking the applicable rules.
15. How much must you repay on a $60,000 HBP withdrawal?
Assume a qualifying participant first withdraws $60,000 under the HBP in 2026.
The mandatory repayment period begins in 2031 under the applicable deferral.
If the participant enters the repayment period with the entire $60,000 outstanding, the initial minimum annual repayment is:
$60,000 ÷ 15 = $4,000.
That is approximately $333 per month if the household chooses to set money aside monthly.
This is a budgeting equivalent, not an obligation to make monthly payments to the CRA.
The actual repayment is reported through the tax process.
If the person voluntarily repays some of the HBP balance earlier, future annual minimums can change.
16. What happens if you miss an HBP repayment?
Suppose the required repayment for a year is $4,000.
The participant contributes only $2,500 and designates the entire amount as an HBP repayment.
The shortfall is $1,500.
Under the applicable rules, that shortfall is generally included in taxable income for the year.
It is not simply an interest charge on the missing payment.
The remaining HBP balance and future repayment calculations are adjusted according to CRA rules.
Participants should review their annual HBP statement and make the required designation when filing.
Do not assume every ordinary RRSP contribution is automatically counted toward the HBP repayment.
17. FHSA versus HBP tax benefits: the fundamental difference
The FHSA generally offers a tax deduction for eligible new contributions and a qualifying withdrawal that is tax-free and need not be repaid.
The HBP uses funds already held in an RRSP.
Those RRSP contributions may have created tax deductions when originally made, subject to the ordinary RRSP rules.
The HBP withdrawal is generally not included in income when it qualifies.
But the participant must later rebuild the withdrawn amount through the HBP repayment schedule.
There is no second tax deduction merely for designating repayment contributions.
Both programs can be tax-efficient.
However, the FHSA usually provides the clearer permanent home-purchase withdrawal advantage for an eligible person who can contribute new savings.
18. Can you transfer an RRSP to an FHSA?
Yes, subject to the applicable rules.
The CRA provides Form RC720 for a direct RRSP-to-FHSA transfer.
A properly completed direct transfer can move eligible funds without an immediate ordinary taxable RRSP withdrawal.
But the transferred amount uses available FHSA participation room.
It is not additional capacity on top of the FHSA limit.
A direct RRSP-to-FHSA transfer is also not deductible as a new FHSA contribution.
It does not restore the RRSP deduction room originally used.
This distinction matters when deciding whether to move existing retirement savings or contribute fresh cash.
19. Should you transfer RRSP savings to your FHSA?
An eligible direct transfer may make sense if the buyer has FHSA room but limited new cash.
It may also allow the transferred funds to become available for a future qualifying FHSA withdrawal without the HBP's repayment obligation.
However, the trade-off is reducing the assets retained in retirement savings.
A person who can afford new FHSA contributions may value the additional deduction created by those contributions.
An RRSP-to-FHSA transfer does not provide that second deduction.
Before transferring, consider FHSA room, retirement goals, tax timing, expected purchase date and investment risk.
Confirm the process with the receiving institution rather than making a taxable withdrawal and attempting to redeposit it.
20. First-time buyer eligibility is not identical for both programs
The FHSA and HBP have their own first-time buyer tests.
For opening an FHSA, the CRA examines whether the person lived in a qualifying home owned by themselves or their spouse or common-law partner during the relevant current-year and preceding-four-calendar-year period.
The FHSA qualifying withdrawal test is different and focuses on specified ownership and occupancy conditions for the holder.
The HBP has its own first-time buyer rules, as well as exceptions in certain situations.
These differences can matter when someone has married, separated, previously owned a home or lives in a spouse-owned residence.
Do not assume that being a first-time buyer in ordinary conversation establishes eligibility for both programs.
Use the CRA's program-specific tests.
21. Can former homeowners qualify again?
Potentially, yes.
Both programs can regard someone as a first-time buyer under particular look-back conditions even if they owned a home much earlier.
But the requirements differ.
The person must examine residence, ownership and the specified calendar years.
For example, selling a home several years ago does not automatically establish immediate eligibility.
Special provisions can apply after marital or common-law partnership breakdown.
HBP re-participation also depends on previous HBP obligations being satisfied.
A former homeowner should review their actual ownership and occupancy history before opening or withdrawing.
22. FHSA eligibility and age requirements
To open an FHSA, an individual generally must satisfy the relevant Canadian-residency and first-time buyer criteria.
The person must also meet the age rules applicable to opening the account.
The federal FHSA framework generally requires the holder to be at least eighteen years old and not more than seventy-one by the end of the calendar year, with possible age-of-majority restrictions imposed by the financial institution according to provincial or territorial law.
The maximum FHSA participation period begins when the first FHSA is opened.
Opening earlier starts the account's fifteen-year clock earlier.
An individual should balance gaining participation room against the expected home-purchase timeline.
23. FHSA qualifying withdrawal conditions
The CRA requires several conditions to be met for a qualifying tax-free FHSA withdrawal.
These include:
Meeting the applicable first-time home buyer test for withdrawal.
Having a written agreement to buy or build a qualifying home.
The home's acquisition or construction completion being before October 1 of the year following the withdrawal.
Not having acquired the qualifying home more than thirty days before the withdrawal.
Meeting the applicable Canadian residency conditions.
Intending to occupy the home as a principal place of residence within one year.
Submitting Form RC725 to the FHSA issuer.
Because timing is important, buyers should coordinate withdrawal requests with their lender, lawyer or notary and financial institution.
A withdrawal that fails the qualifying conditions can become taxable.
24. HBP withdrawal conditions and forms
HBP participants must also satisfy eligibility conditions.
These include the relevant home-purchase or construction agreement, first-time buyer requirements or applicable exceptions, and rules about timing and occupancy.
The CRA uses Form T1036 for an HBP withdrawal.
The participant completes the required section and submits the form to the RRSP issuer.
Multiple eligible HBP withdrawals may be allowed, but timing restrictions apply.
The CRA generally permits them in the calendar year of the first withdrawal and January of the following year.
The program's maximum is calculated across the person's relevant HBP withdrawals.
A regular taxable RRSP withdrawal should not be confused with a properly documented HBP withdrawal.
25. What if your home purchase is delayed?
Closing dates can change.
A purchaser may encounter mortgage delays, title issues, builder completion changes or other practical problems.
FHSA qualifying withdrawals and HBP withdrawals each have conditions tied to the acquisition or construction timeline.
If the home is not ultimately acquired, the result can differ between the programs.
The HBP has rules under which participation may be cancelled in certain cases.
A qualifying FHSA withdrawal generally cannot simply be cancelled and recreated by redepositing the money.
A redeposit after an FHSA qualifying withdrawal can create new contribution-room or tax problems.
Before withdrawing near an uncertain closing date, review the conditions and consult the financial institution or qualified tax adviser.
26. What happens if you never buy a home?
The FHSA has a maximum participation period.
Generally, it ends by December 31 of the year in which the earliest relevant event occurs, including the fifteenth anniversary of opening the first FHSA or reaching the specified age threshold.
If the holder never makes a qualifying home withdrawal, eligible FHSA assets may generally be directly transferred to an RRSP or RRIF on a tax-deferred basis, subject to the applicable rules.
A direct qualifying transfer of remaining FHSA funds does not necessarily require new RRSP deduction room.
An ordinary taxable FHSA withdrawal is different.
The owner should arrange the correct transfer before the account's participation period ends.
27. Investment choice matters when the purchase date is near
An FHSA can hold eligible investments rather than only a cash deposit.
But money intended for a home purchase in the near future should not be invested without considering market risk.
A stock-heavy portfolio can lose value shortly before the closing date.
Likewise, RRSP assets intended for an HBP withdrawal may need to be made liquid in advance.
The right investments depend on the purchase horizon and risk tolerance.
Short-term buyers commonly prioritise capital preservation and liquidity over maximising potential investment returns.
The FHSA's tax advantages do not protect an investment from market losses.
28. Which account should receive new savings first?
For an eligible first-time buyer with unused FHSA participation room, the FHSA is often an attractive destination for new savings intended for a qualifying home purchase.
It offers the possibility of deductible contributions followed by tax-free qualifying withdrawals without repayment.
However, the answer can differ if the individual expects not to buy within the eligible time frame, has employer RRSP matching benefits, faces unusual tax circumstances or has urgent high-interest debt.
An employer match should not be ignored simply because the FHSA has favourable tax treatment.
Consider the total compensation benefit, cash-flow needs and purchase plan.
The best order of contributions is personal rather than universal.
29. Can you use both programs and still qualify for a mortgage?
Using FHSA and HBP funds does not guarantee mortgage approval.
Lenders still assess income, debt servicing, credit, down payment and applicable mortgage underwriting criteria.
The funds must also be acceptable for the specific down-payment and closing process.
A buyer should disclose the source of funds accurately and provide statements or other supporting records requested by the lender.
Do not confuse the maximum program withdrawal amounts with a lender's minimum required down payment.
Property price, insured mortgage limits and lender policies are separate issues.
Plan for legal fees, inspections, insurance and other closing costs in addition to the down payment.
30. Common FHSA and HBP mistakes to avoid
Mistake 1: Treating $40,000 as the maximum FHSA withdrawal.
It is generally the lifetime contribution limit; investment earnings can change account value.
Mistake 2: Assuming FHSA room accumulates before opening.
Room generally begins with the first opened account.
Mistake 3: Ignoring the $8,000 carryforward cap.
Not all unused room accumulates indefinitely.
Mistake 4: Treating an RRSP-to-FHSA transfer as a fresh tax deduction.
Direct transfers are generally not deductible.
Mistake 5: Assuming HBP withdrawals are permanently tax-free.
Repayment obligations normally apply.
Mistake 6: Using the ordinary HBP repayment start date for a qualifying 2026 withdrawal.
CRA's current guidance extends the deferral to 2026–2028 first withdrawals.
Mistake 7: Making an ordinary RRSP withdrawal instead of a qualifying HBP withdrawal.
Use the correct procedure and form.
Mistake 8: Assuming joint home purchase guarantees both buyers are eligible.
Each person must independently qualify.
Mistake 9: Ignoring FHSA qualifying withdrawal conditions near closing.
Timing and residency matter.
Mistake 10: Withdrawing retirement savings without a repayment plan.
A mortgage payment and future HBP repayments can strain the household budget.
31. Which is better? Decision table
| Situation | Approach worth considering |
|---|---|
| Eligible buyer saving new money for a first home | FHSA first, subject to personal tax and savings circumstances |
| Buyer has large eligible RRSP savings | HBP may supplement the down payment |
| Buyer has both fully funded accounts | Combine both if all withdrawal conditions are met |
| Couple with two qualifying account holders | Evaluate limits and eligibility for each person separately |
| Buyer expects higher marginal tax rate later | Consider timing permitted FHSA deductions |
| Buyer has FHSA room but little new cash | Evaluate a direct RRSP-to-FHSA transfer carefully |
| Buyer must avoid future repayment obligations | FHSA has a major structural advantage |
| Buyer needs more funds after using FHSA | HBP may provide additional eligible funds |
| Buyer is purchasing very soon | Verify forms, liquidity and withdrawal timing |
| Buyer may not purchase within fifteen years | Assess the FHSA participation period and rollover alternatives |
32. Final first-time buyer checklist
Before using either program:
Confirm Canadian residency and program eligibility.
Review any prior home ownership and principal-residence history.
Check whether a spouse's ownership affects eligibility.
Confirm FHSA opening date and available participation room.
Verify prior FHSA contributions and RRSP transfers.
Check cumulative FHSA contributions against applicable limits.
Review the account's actual investment balance.
Confirm eligible RRSP funds available for HBP withdrawal.
Check any previous outstanding HBP repayment balance.
Verify the HBP limit of $60,000 per participant.
Confirm the correct 2026–2028 repayment deferral if applicable.
Estimate future HBP annual repayment obligations.
Obtain a valid written home-purchase agreement.
Check purchase and occupancy timing conditions.
Submit Form RC725 for the qualifying FHSA withdrawal.
Submit Form T1036 for HBP withdrawals.
Coordinate funds with the mortgage lender and closing professional.
Retain contribution, withdrawal and tax records.
Report FHSA and HBP activity correctly on tax returns.
Keep sufficient cash for closing costs and emergency expenses.
Conclusion: FHSA for permanent home-purchase tax advantages, HBP for additional access to RRSP funds
Canada's FHSA and RRSP Home Buyers’ Plan can work together.
For 2026, the FHSA generally provides $8,000 of initial annual participation room and a $40,000 lifetime contribution limit.
The Home Buyers’ Plan permits eligible withdrawals of up to $60,000 per person from RRSP savings.
Qualifying FHSA withdrawals do not need to be repaid.
HBP withdrawals generally must be repaid over fifteen years.
For qualifying first HBP withdrawals made in 2026, repayments begin in 2031 under the CRA's extended temporary relief.
A buyer with sufficient balances may potentially combine $40,000 of FHSA contributions and a $60,000 HBP withdrawal for $100,000 of funds, before FHSA investment growth.
Two independently eligible buyers may potentially double those amounts.
For many eligible first-time buyers, the most useful strategy is to build FHSA savings early, preserve suitable RRSP resources and combine both programs only after confirming the purchase, tax and repayment conditions.
FREQUENTLY ASKED QUESTIONS
1. What are the FHSA and RRSP Home Buyers’ Plan limits in Canada for 2026?
For the FHSA, an eligible person generally receives $8,000 of participation room in the year the first account is opened, with a lifetime contribution limit of $40,000 and restricted carryforward of unused room. The Home Buyers’ Plan permits eligible withdrawals of up to $60,000 per person from RRSP savings. These programs have different limits because the FHSA is a contribution-based savings account, while the HBP is a withdrawal program. Qualifying FHSA investment growth may allow withdrawals exceeding $40,000.
2. Can I use both FHSA and RRSP Home Buyers’ Plan funds to buy the same house?
Yes. The CRA expressly permits qualifying FHSA withdrawals and HBP withdrawals for the same qualifying home when all conditions are met. One eligible buyer with $40,000 in FHSA funds and $60,000 of eligible RRSP savings may potentially access $100,000. Two independently eligible buyers may potentially access $200,000 combined. The FHSA portion does not require repayment after a qualifying withdrawal. HBP withdrawals generally must be repaid over fifteen years. Each buyer must meet the applicable eligibility, residency, home-purchase and withdrawal rules.
3. When do I start repaying the RRSP Home Buyers’ Plan if I withdraw $60,000 in 2026?
According to the CRA's current guidance, the extended temporary HBP repayment relief applies to first withdrawals made from 2026 through 2028. A qualifying participant making their first HBP withdrawal in 2026 generally begins the fifteen-year repayment period in 2031. If the full $60,000 remains outstanding at that point, the initial minimum annual repayment would be $4,000. Missing a required repayment can cause the unpaid minimum to be included in taxable income. Review the personal CRA HBP statement and the applicable rules before filing.
VERIFIED OFFICIAL CANADIAN SOURCES
1. Canada Revenue Agency — Participating in Your FHSAs
2. CRA — Opening Your FHSAs and First-Time Buyer Eligibility
3. CRA — FHSA Tax Deductions
4. CRA — FHSA Withdrawals and Transfers Out
5. CRA — Direct RRSP-to-FHSA Transfers
6. CRA — Home Buyers’ Plan Overview and Extended 2026–2028 Repayment Relief
7. CRA — How to Participate in the HBP
8. CRA — HBP Withdrawal Procedures
9. CRA — Repaying Home Buyers’ Plan Withdrawals
10. CRA — Closing an FHSA
11. Department of Finance Canada — 2026 HBP Repayment Relief Legislative Explanation
https://fin.canada.ca/drleg-apl/2026/nwmm-amvm-2-0426-n-eng.html
Canadian tax and financial disclaimer: Rules reviewed October 21, 2026, using CRA and federal government resources. This article explains general FHSA and HBP rules, not personalised tax advice. Eligibility, unused participation room, tax deductions, qualifying withdrawals, HBP repayments and investment outcomes vary. The temporary 2026–2028 repayment extension should be checked against the participant's actual first-withdrawal year and applicable legislation. Seek advice from a qualified Canadian tax professional where required.
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