FHSA vs Home Buyers Plan Comparison Canada
Compare the FHSA with the Home Buyers' Plan for a first-home down payment: cash at closing, tax refunds and the fifteen-year RRSP repayment.

What it does
This FHSA vs HBP comparison runs the same annual savings budget down both routes to a first-home down payment: a First Home Savings Account, which is deducted going in, tax free coming out and never repaid, against the Home Buyers' Plan, which lends you your own RRSP money and takes it back over fifteen years.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| FHSA annual contribution limit | 8,000 | canada.ca | Effective 2025-01-01FHSA annual contribution limit. Up to 8000 carry-forward, so max 16000 in a year. |
| FHSA lifetime contribution limit | 40,000 | canada.ca | Effective 2025-01-01FHSA lifetime contribution limit. |
| Home Buyers' Plan maximum withdrawal | 60,000 | canada.ca | Effective 2025-01-01RRSP Home Buyers' Plan max withdrawal (raised from 35000 for withdrawals after Apr 16 2024). Repayable over 15 years. |
| Home Buyers' Plan repayment period (15 years; minimum annual repayment = balance / 15) | 15 | canada.ca | Effective 2026-01-01Updated dead Canada.ca CRA URL to verified 200 OK official publication |
| RRSP contribution rate of earned income | 0.18 | canada.ca | — |
| RRSP annual dollar limit | 33,810 | canada.ca | Effective 2026-01-01CRA RRSP annual dollar limit for 2026. Closed at 2026-12-31; superseded by the 2027-01-01 row (35390). audit 2026-09-23 |
| Federal personal income tax brackets and rates for 2026. | Rate schedule | canada.ca | Effective 2026-01-01Verified unchanged at CRA; citation replaced, it previously named a fund manager rather than a government page and carried no URL. |
| Maximum federal basic personal amount for 2026. | 16,452 | canada.ca | Effective 2026-01-01Verified 16452 at the CRA indexation page; the citation was the bare text CRA 2026 with no URL a reader could follow. |
| Provincial and territorial personal income tax brackets and rates for 2026. | Rate schedule | canada.ca, revenuquebec.ca | Effective 2026-01-01BC lowest rate corrected 5.06 to 5.6 pct; PE fourth band to 142520 with a new 20 pct band over 200000. MB kept at 47000/100000: its indexation is paused, and CRA payroll tables confirm it. |
| Provincial and territorial basic personal amounts for 2026, claimed at each jurisdiction lowest rate. | Rate schedule | canada.ca, revenuquebec.ca | Effective 2026-01-01NL raised from 11188 to 13094, retroactive to 1 January 2026 (CRA T4127 July 2026, 123rd edition; payroll applies a prorated 15000 from July). Other 12 amounts unchanged. audit 2026-09-23 |
| Quebec abatement of basic federal tax | 0.165 | canada.ca | Effective 2026-01-01Quebec refundable federal tax abatement (reduces federal tax for Quebec residents) |
| Minimum federal basic personal amount for 2026, reached at net income of 258,482 and above. Between 181,440 and 258,482 the amount falls in a straight line from the maximum. The Yukon amount follows the same formula. | 14,829 | canada.ca | Effective 2026-01-01 |
| Manitoba basic personal amount phase-out for 2026: full amount at net income up to 200,000, falling in a straight line to zero at 400,000. | Rate schedule | canada.ca | Effective 2026-01-01 |
| Ontario tax reduction for 2026 (no dependants): tax and surtax are reduced by the lesser of that amount and twice the basic reduction amount minus it. | Rate schedule | canada.ca | Effective 2026-01-01 |
| British Columbia tax reduction for 2026 (BC announcement of 17 February 2026): up to 690 at taxable income to 25,570, then falling at 3.56 percent of the excess until it reaches zero at 44,952. | Rate schedule | canada.ca | Effective 2026-01-01Corrected from the January 2026 payroll table (575, ending 41,722) to the July 2026 edition's annual (Option 2) formula: maximum 690, 3.56 percent, zero above 44,952. |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
FHSA route = FHSA balance + side account; HBP route = min(RRSP balance, HBP maximum) + side account; HBP repayment = withdrawal / 15 each year
How it works
Each year it puts what fits into the registered account, sends the overflow and, optionally, the tax refund to a side account earning the same return, then at purchase compares the FHSA balance with the amount the Home Buyers' Plan lets you withdraw, and sets both against the down payment you need.
Where it is used
- Choosing between an FHSA and the Home Buyers' Plan for a first purchase
- Sizing the fifteen-year repayment a Home Buyers' Plan withdrawal creates
- Checking whether either route reaches the down payment you actually need
Worked example
An Ontario buyer on CA$85,000.00 saving CA$8,000.00 a year for 5 years reaches … on the FHSA route against … on the Home Buyers' Plan route, a gap of …. The larger figure is borrowed, not earned: it carries a … withdrawal that has to go back at … a year, against a down payment target of ….
What the FHSA vs HBP comparison does
The real question is whether the money you bring to closing is yours or borrowed from your future self, and what that difference is worth to you. The tool runs the same annual savings budget down both routes over the same horizon at the same return, and shows what each puts in your hand and what it leaves you owing.
Both routes start with a deduction, so comparing them on the refund alone tells you little. The difference shows up afterwards.
How the two routes work
The First Home Savings Account combines features of an RRSP and a TFSA. Contributions are deductible, growth is untaxed, and a qualifying withdrawal for a first home is tax-free and never repaid. The limit is the pace: $8,000 a year and $40,000 in total, so a large budget cannot go in at once.
The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP for a first home without tax on the withdrawal. You took the deduction when you contributed, and starting in the second year after the withdrawal you repay it into your RRSP over fifteen years. Any year you fall short, the shortfall is added to your taxable income and the room is lost.
Money contributed to an RRSP within 90 days of the withdrawal cannot be taken out under the plan, so funding the RRSP the week before closing does not work.
What the calculator models
Each year the calculator puts what fits into the registered account for each route: up to the FHSA annual limit, capped by the lifetime limit, or the year’s RRSP room, a percentage of your income up to an annual dollar limit.
Anything the registered account cannot take goes into a side account earning the same return, as does the tax refund if you choose to reinvest it. That keeps the comparison fair: both routes start from the same budget.
Refunds are calculated by running the federal and provincial brackets with and without the contribution, rather than multiplying by a headline rate. Quebec residents get a slightly smaller refund because the abatement of basic federal tax is applied.
A worked example
With the default inputs ($8,000 a year for five years, 5% return, $85,000 income in Ontario, a $25,000 existing RRSP, refunds reinvested, and a 20% down payment on a $600,000 home), the FHSA route reaches about $57,312 at closing and the Home Buyers’ Plan route about $73,107. Both produce about $11,860 of refunds. Against the $120,000 down payment, the FHSA route is about $62,688 short and the HBP route about $46,893 short. The HBP route’s $60,000 withdrawal must be repaid at $4,000 a year, about $333 a month, for fifteen years.
Why the borrowed route often looks bigger
An existing RRSP balance is available immediately, and five years of new FHSA savings cannot compete with a balance that has been growing since your first job. The Home Buyers’ Plan maximum is also larger than an FHSA can hold after a few years. When the account limits bind, the plan wins on volume.
It does not make the money yours. A $60,000 withdrawal is $4,000 a year going back into the RRSP for fifteen years, in the same years you are carrying a new mortgage, property tax and the other costs of a first home. Repayments also earn no new deduction, because you already took it, which is a real cost that the balance comparison does not show.
When each route wins
The FHSA is better when the horizon is long enough to fill it, when you do not already have a large RRSP, and when the repayments would be a strain. Many people also simply prefer not to carry an obligation into their first years of owning a home.
Short horizons favour the plan: if you are buying in two years, the FHSA cannot build enough room to matter, while an existing RRSP is already there. The plan also wins when reaching 20% down is the goal, because avoiding mortgage default insurance can be worth more than fifteen years of repayments. The calculator shows each route’s shortfall against your target, which usually settles the question.
The answer most people should reach
For a buyer with room and time, use both. Fill the FHSA first, because it is a deduction with no repayment, then add the Home Buyers’ Plan if the down payment still falls short. Set the reinvest-refund switch to match what you will really do; most people spend the refund, and turning it off gives a more realistic projection.
Reading the result
Compare the two available amounts, then the repayment, then each shortfall against your target. A route that reaches the target with no repayment beats one that overshoots it with a fifteen-year obligation, unless the overshoot is what gets you to 20% down.
Every figure is an estimate based on your numbers and the current published limits, not financial advice. Returns are assumed, eligibility for both plans depends on conditions this tool does not test, and repayment rules can change. Confirm with the CRA or an advisor before committing to either route.
About This Tool: FHSA vs HBP
FHSA vs HBP: use this tool to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026 · Data last reviewed 2026-10-19
