First-Home Combined Planner — FHSA + HBP + HBA
Canada's three first-home tax programs stack. This planner shows how much you can put together using all three — up to $101,400 of tax-advantaged first-home capacity ($40k FHSA + $60k HBP + $1,400 HBA credit). Also includes notes on FTHBI (discontinued).
Your plan
Combined first-home capacity at purchase
$71,400
FHSA + HBP withdrawal + HBA federal credit
FHSA at purchase
$40,000
Lifetime cap $40,000 reached
HBP-eligible RRSP
$30,000
$4,000/yr
HBA federal credit
$1,400
$10,000 × 14.0%
FHSA maxed — excess annual savings are routed to RRSP for HBP build-up.
Program-by-program comparison
| Program | Annual limit | Max benefit | What it does |
|---|---|---|---|
| FHSA — First Home Savings Account CRA Form RC725 at any bank/broker. Age 18-71, never owned a home. | $8,000/yr | $40,000 | Tax-deductible in, tax-free out for qualifying first home. Unused room carries forward 1 year. |
| HBP — Home Buyers' Plan First-time buyer (haven't owned principal residence in last 4 years). | — | $60,000 | Withdraw from RRSP tax-free for first home. Repay over 15 years starting year 2 (or year 5 for withdrawals 2022-2025). |
| HBA — Home Buyers' Amount (line 31270) First-time buyer, close in year being claimed. Can be split with spouse. | — | $10,000 | $10,000 non-refundable federal credit. Worth $1,400 (2026) / $1,450 (2025) / $1,500 (2024) depending on lowest federal rate. |
| FTHBI — First-Time Home Buyer Incentive Existing participants continue until their term ends. | — | Discontinued | Was a 5-10% shared-equity loan from CMHC. No longer available. |
How to allocate (simplified)
- Max FHSA first ($8k/yr up to $40k). Tax-deductible contributions + tax-free qualifying withdrawals — the clear winner.
- Any excess → RRSP up to HBP target ($60k). Still tax-deductible, but withdrawals must be repaid over 15 years.
- Claim HBA ($10k) on your tax return for the purchase year. Worth ~$1,400 at the lowest federal rate; can be split with a spouse.
- Further savings → TFSA or non-registered. Once FHSA ($40k) and HBP ($60k) are capped, additional contributions lose the first-home tax advantage.
This is a planning heuristic, not tax advice. FHSA requires at least a 90-day seasoning to generate a deduction for the purchase year; same for HBP. Plan contributions accordingly.
Frequently asked questions
Can I use FHSA and HBP together for the same home?
Yes — Budget 2023 explicitly permits combining FHSA with HBP on the same qualifying home purchase. That's the whole point of this planner: stack the $40k FHSA + $60k HBP + $1,400 HBA credit = up to $101,400 of first-home tax-advantaged capacity.
FHSA or RRSP/HBP first — which should I max?
FHSA first. FHSA withdrawals for a first home are tax-free forever — you never repay. HBP withdrawals are a loan from your RRSP to yourself that must be repaid over 15 years. FHSA dominates on a dollar-for-dollar basis unless you've already maxed it.
Does FHSA contribution room carry forward?
Yes — you can carry forward up to $8,000 of unused FHSA room to the next year, meaning you can contribute up to $16,000 in a single year if you skipped the prior year. You cannot carry forward more than that.
What happens to the FHSA if I don't buy a home?
You have 15 years from opening (or until age 71, whichever comes first). If you never buy, you can transfer the balance tax-free to your RRSP or RRIF — no contribution room required. Direct cash withdrawal is taxable as ordinary income.
How long do I have to repay the HBP?
Standard: 15-year repayment starting the second year after withdrawal. Temporary Budget 2024 extension: for withdrawals made between 1 January 2022 and 31 December 2025, repayment starts year 5 (a 3-year grace period). Each year you must repay at least 1/15th; missed amounts are added to your taxable income that year.
Is FTHBI still available?
No. The First-Time Home Buyer Incentive (shared-equity loan from CMHC) closed to new applications on 21 March 2024. Existing participants continue under their original terms. Don't base a plan on FTHBI for 2026 purchases.
Can both spouses claim the Home Buyers' Amount?
You can split the $10,000 HBA between spouses however you like (e.g. $5,000 each), but the total across the couple can't exceed $10,000. At the lowest federal rate this means ~$1,400 credit max per household — there's no double-claim.