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FHSA, RRSP or TFSA, which one to choose?

The FHSA, TFSA and Home Buyer’s Plan (HBP) associated with the RRSP are all savings programs you can use to help buy your first home.

Here’s what you need to know:

FHSA TFSA HBP (RRSP)

Objective

Buying your first home

General savings

Buying your first home and saving for retirement

Eligibility

  • Be a Canadian resident between the ages of 18 and 71 (19 in some provinces).*
  • Not lived in a home owned by you, your spouse, or your common-law partner in the last 4 calendar years or the current calendar year before the withdrawal (except for the 30 days immediately before the withdrawal).

  • Be a Canadian resident and at least 18 years old (19 in some provinces).*

  • 71 years old or younger.*
  • Have a permanent or temporary SIN starting with a 9.
  • Not lived in a home owned by you, your spouse, or your common-law partner in the last 4 calendar years or the current calendar year before the withdrawal (except for the 30 days immediately before the withdrawal).

Annual contribution room

Annual limit of $8,000 ($40,000 max).1

$7,000 in 2024, unused contribution room is accumulated and carried forward from age 18.

18% of income earned in the previous year.2

Tax-deductible contributions

Yes

No

Yes

Taxation on withdrawals

Withdrawals made to buy your first home are not taxed.3

No

Withdrawals made to buy your first home are not taxed.4

Maximum withdrawal for the purchase of a property

No withdrawal limit. Withdrawn amounts do not have to be refunded.

No withdrawal limit

$60,0005

 * Before December 31 of the current year. 

  1. For the FHSA, unused contribution room can be carried forward to the following year. The lifetime contribution limit for this account is $40,000.
  2. The contribution room is calculated based on the unused contribution room, the previous year's net income, and the RRSP annual limit.  
  3. You can withdraw money from your FHSA for purposes other than buying a home, but those withdrawals are taxed.
  4. Withdrawals from an RRSP are taxed except withdrawals for the acquisition of a first home (HBP) or to finance your education (LLP).
  5. As of April 17, 2024, the HBP limit to help first-time home buyers is $60,000. Amounts withdrawn under the HBP must be repaid to an RRSP over a maximum period of 15 years with a maximum grace period of 5 years.

For more details, visit our pages on how to get the most out of your RRSP, TFSA, and FHSA. 

Good to know 

You can combine the FHSA and HBP to buy the same eligible property.