Best ways to save for a home: FHSA + TFSA + RRSP
There's more than one way to save for your first home
Using your First Home Savings Account (FHSA), Tax-Free Savings Account (TFSA), and Registered Retirement Savings Plan (RRSP) together can help you maximize your savings for a down payment.Choosing a registered product to save for the purchase of your first home is a great way to get the most from your savings —either by offering a tax deduction now, the ability to withdraw funds tax-free when you’re ready to purchase, or with an FHSA —the best of both worlds! And, you don't have to choose. As long as you meet the eligibility requirements, you can open any or all of these registered products to help you reach your dream of home ownership faster.
Here's a helpful overview of how combining these registered savings accounts can help you save for your first home more quickly.
| FHSA icon | TFSA icon | RRSP icon | |
| Who can open the account | Canadian resident Age 18-71 First-time homebuyer* |
Canadian resident Age 18+ Valid Social Insurance Number (SIN) |
Canadian resident Age 18-71 First-time homebuyer* Valid Social Insurance Number (SIN) Income earned and tax return filed |
| Tax-deducable contributions | Yes | No | Yes |
| Tax-free withdrawels for home purchases | Yes | Yes | Yes |
| Maximum contribution limit | $8,000 annually Catch up on unused contribution room $40,000 lifetime |
$7,000 in 2025 Catch up on unused contribution room |
18% of your income earned for the previous tax year Up to annual limit in 2025 of $32,490 |
| Other requirements | Use within 15 years or the end of the year you turn 71, whichever is earlier | None | Home Buyer Plan (HBP) $60,000 from RRSP for down payment 5-year repayment** |
| Withdrawal waiting period | None | None | 90 days from last contribution |
*You cannot have owned or jointly owned a home in the year or the previous four years.
**Or include required payment as income for that taxation year.
