The FHSA and RRSP Home Buyers’ Plan in 2026: How to Stack Both and Maximize Your Down Payment
First-time buyers in Canada have two powerful tools, and they can be used together. Combining the First Home Savings Account with the RRSP Home Buyers’ Plan can meaningfully increase your down payment, and your buying power, when they are planned in advance.
The FHSA in brief
The First Home Savings Account lets eligible first-time buyers contribute up to a set annual limit, with room to carry forward. Contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home are tax-free like a TFSA. It is one of the most efficient ways to save for a purchase.
The RRSP Home Buyers’ Plan
The Home Buyers’ Plan lets you withdraw from your RRSP toward a first home and repay it over time. Used on its own it is helpful. Used alongside the FHSA, it can add a substantial second layer to your down payment.
Stacking them the right way
Because both programs have their own limits and rules, the order and timing of contributions and withdrawals matters. Planning twelve months ahead lets you maximize the deduction in a high-income year and have the funds seasoned and ready when you make an offer.
Down payment, then approval
A larger down payment is only part of the picture. Pairing your savings strategy with a pre-approval means you know your true budget, your rate is protected while you shop, and your offer is taken seriously in a competitive market.