FHSA vs HBP in 2026: do you have to choose?
The calculator starts from an FHSA opened this year and an $80,000 income: change the province and income to see what the deduction is worth before you touch your RRSP.
FHSA room available in 2026
$8,000
One-year carry-forward, $8,000 at most. Lifetime limit left: $40,000.
| Tax saved if you put in $8,000 | $2,889 |
| Lifetime limit left | $40,000 |
| Must close by | end of 2041 |
You need not deduct in the year you contribute: the deduction can wait for a higher-income year.
| Year | Room | Paid | Carried |
|---|---|---|---|
| 2026 | $8,000 | $0 | $8,000 |
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
The FHSA and the HBP both help you buy a first home, but they work in completely different ways. A qualifying FHSA withdrawal, up to $40,000 of contributions plus growth, is not taxed and is never repaid: once the money is out, it is yours. The HBP lets you take up to $60,000 out of your RRSPs without tax, but it is a loan to yourself: it must go back into the RRSP over 15 years, and any repayment you miss is added to your taxable income. For a first withdrawal in 2026, repayment starts in 2031. You do not have to pick one: the Canada Revenue Agency lets you make an HBP withdrawal and a qualifying FHSA withdrawal for the same home, as long as you meet the conditions of each. One person can bring up to $100,000 to the purchase, and a couple who both qualify up to $200,000, with two FHSAs and two HBP withdrawals.
The real difference: a loan versus a withdrawal
The HBP, described on the CRA's Home Buyers’ Plan page, lets you take money out of your RRSPs to buy or build a qualifying home without that withdrawal being taxed. But the money is still retirement savings: you have to put it back into an RRSP over 15 years, and whatever is not put back on time becomes taxable income. The FHSA flips that logic. You put new money in, deduct the contribution, and the qualifying withdrawal for the home is neither taxed nor repayable. Once the money is out, the matter is closed.
That difference shows up in your budget. With the HBP, the 15 years after the purchase must absorb an annual RRSP repayment on top of the mortgage. With the FHSA, nothing follows the purchase. On the other hand, the HBP needs no planning if your RRSP is already well funded, while the FHSA only holds what you have put in since you opened it.
The two accounts side by side
| FHSA | HBP | |
|---|---|---|
| Where the money comes from | Contributions made to the FHSA | Money already in your RRSPs |
| Maximum amount | $8,000 a year, $40,000 for life, plus growth | $60,000 per person |
| Deduction | Yes, in the year you contribute or later | Already claimed when you contributed to the RRSP |
| Tax on withdrawal | None on a qualifying withdrawal | None up to $60,000; any excess is reported as income |
| Repayment | None | Over 15 years, from 2031 for a first withdrawal in 2026 |
| If a repayment is missed | Not applicable | Added to that year’s income |
| For the same home | Yes, with the HBP | Yes, with the FHSA |
Using both for the same home
The CRA's note is explicit: you can withdraw amounts from your RRSP under the HBP and make a qualifying withdrawal from your FHSA for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal. A single buyer can therefore bring up to $100,000: $40,000 of FHSA contributions, plus their growth, and $60,000 from the RRSP. For a couple the limits are individual. If both spouses qualify, each can make a qualifying withdrawal from their own FHSA for the same home, and each can use the HBP with their own RRSPs, for a possible total of $200,000. Watch the FHSA first-time buyer test, which also looks at a home owned by your spouse.
What each option costs or saves
Take someone earning $80,000 in Ontario who opens an FHSA this year. Contributing and deducting $8,000 cuts their tax by $2,372 at 2026 rates. The same money taken out later for the home is not taxed, so the saving stays. If they also use the HBP for $60,000, they must put $4,000 a year back into their RRSP from 2031 to 2045. In a year they skip it, that amount is added to their income: at $80,000 in Ontario, that is roughly $1,186 of extra tax. The HBP mini calculator shows the schedule for the year of your first withdrawal.
Your HBP repayment schedule
Minimum repayment per year
$4,000
| Amount counted | $60,000 |
| Limit per person | $60,000 |
| Repayment period | 15 years |
| If a repayment is missed | added to taxable income |
When the HBP is still needed
The FHSA has one weakness: its room only starts when you open it. Someone who opens an account this year and buys a few months later can only put in $8,000 before the purchase, which is small next to a down payment. If they already have a sizeable RRSP, the HBP provides most of the money and the FHSA tops it up. You can also transfer directly from an RRSP to an FHSA: the transfer uses FHSA room, is not deductible and gives back no RRSP room, but the money that later comes out for the home never has to be repaid.
What this comparison does not replace
Each withdrawal has its own conditions, checked at the time you make it, and they are not the same for both accounts. The FHSA rules are on the FHSA page and the repayment rules on the HBP page. If you are still weighing what your RRSP should do for retirement, the RRSP vs TFSA page compares both accounts at your marginal rate.