Canada has two powerful tax-advantaged ways to save for a first home: the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP). You can use both.
FHSA
Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home are tax-free (like a TFSA). You can contribute up to $8,000 per year, to a $40,000 lifetime maximum.
Home Buyers' Plan
Withdraw up to $60,000 from your RRSP toward a first home, tax-free - but you must repay it to your RRSP over 15 years. Withdrawals made from 2026 onward get a 2-year grace period before repayment starts (withdrawals made 2022-2025 got an extended 5-year grace period).
Using both
Many first-time buyers max the FHSA (no repayment required) and top up with the HBP. Together they can fund a substantial down payment with significant tax savings.
Have questions about your situation? An advisor can walk you through it.