Yes. A first-time buyer can withdraw from both a First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) to fund the same home purchase, and for a couple who both qualify, the combined room is substantial. Pekoe Mortgages is a licensed brokerage, FSRA Licence #13321 in Ontario and RECA licensed in Alberta, and this is one of the most common down payment questions our first-time buyers bring to the desk.
Below is the definitive breakdown: how much each account holds on its own, what a couple can stack together, and exactly how the two accounts interact when you actually get to closing.
Can You Combine the FHSA and HBP for the Same Home?
Yes, the two programmes are independent of each other, and CRA allows a qualifying buyer to use both toward the same qualifying home purchase. The FHSA and the Home Buyers’ Plan each have their own eligibility test, their own withdrawal rules, and their own paperwork, but nothing stops you from using them side by side.
This matters because most buyers assume they have to pick one. They don’t. A buyer who has been contributing to an FHSA for a few years and also holds RRSP savings can pull from both accounts for the same closing, without one withdrawal disqualifying the other.
The key fact to remember: the FHSA and HBP are separate tax programmes that can be layered on a single purchase, each governed by its own rules.
How Much Does Each Account Hold, Per Person?
Per person, the two accounts currently combine for up to $100,000 in tax-advantaged down payment funds. The FHSA carries a lifetime contribution limit of $40,000, built up at $8,000 of new contribution room per year. The HBP allows a withdrawal of up to $60,000 from your RRSP.
These figures ($8,000 annual and $40,000 lifetime for the FHSA, $60,000 for the HBP) are current as of writing. Both limits are set by CRA and can change, so confirm the latest numbers with CRA or with us before you build a plan around them.
How Much Can a Couple Stack Together?
A couple where both partners individually qualify as first-time buyers can put up to $200,000 in combined FHSA and HBP funds toward one home. Each partner’s room is calculated separately, so the couple totals are simply double the individual figures.
| Account | Per Person Limit | Per Couple (both qualify) |
|---|---|---|
| FHSA lifetime contribution room | $40,000 | $80,000 |
| HBP withdrawal (per person, from RRSP) | $60,000 | $120,000 |
| Combined FHSA + HBP | $100,000 | $200,000 |
Worked example, illustrative: a couple who each maxed their FHSA over five years ($8,000 a year, $40,000 total each) and each pulled the full $60,000 HBP amount would have $80,000 from the two FHSAs plus $120,000 from the two HBP withdrawals, for $200,000 available toward one down payment before a dollar of non-registered savings is added. On a $700,000 home with 20% down ($140,000 required), that couple’s stacked FHSA and HBP room alone would cover the full down payment with room to spare.
The citable fact here: a two-person household where both partners qualify as first-time buyers can direct up to $200,000 of combined FHSA and HBP funds to a single closing, based on limits current as of writing.
How the Two Accounts Interact at Closing
At closing, the FHSA and HBP show up as two separate withdrawals feeding the same down payment, each with its own paper trail and its own repayment obligation (or lack of one). Your lawyer and your lender will want to see the source of funds for both, exactly as they would for any down payment.
| Feature | FHSA | Home Buyers’ Plan (HBP) |
|---|---|---|
| Source of funds | FHSA contributions (tax-deductible going in) | Existing RRSP savings |
| Withdrawal for a qualifying home | Tax-free, no repayment required | Tax-free at withdrawal, but must be repaid |
| Repayment obligation | None. Withdrawn funds do not need to go back into the FHSA | Repaid to your RRSP over 15 years, starting the second year after withdrawal |
| Missed repayment consequence | Not applicable | Missed portion is added to your taxable income that year |
| Timing requirement | Must have a written agreement to buy or build before October 1 of the year after withdrawal | Must have a written agreement to buy or build before October 1 of the year after withdrawal |
Both accounts require you to have a signed agreement of purchase and sale in place, and both require you to occupy the home as your principal residence within a set window after buying. Your lawyer will request statements confirming the source of each deposit, so keep your FHSA and RRSP withdrawal confirmations on file for closing.
The one fact worth remembering: FHSA withdrawals never need to be repaid, while HBP withdrawals must be repaid to your RRSP over 15 years or the unpaid portion is taxed as income.
What Each Account Requires Before You Can Withdraw Tax-Free
To use either account, you need to meet that account’s own first-time buyer test, which generally means you have not owned a home you lived in as your principal residence during the current calendar year or the four preceding years. Meeting the test for one account does not automatically mean you meet it for the other, but for most genuine first-time buyers, both are satisfied at the same time.
You also need the home to qualify: a principal residence in Canada that you or your spouse intends to occupy within a year of buying. Investment properties and second homes do not qualify for either programme.
The practical takeaway: confirm your first-time buyer status against both the FHSA and HBP rules before you count on either amount, since a recent home purchase can disqualify one or both.
Why Opening the FHSA Early Matters
The direct answer is timing: because FHSA room only accumulates at $8,000 a year, opening the account as early as possible is the only way to reach the $40,000 lifetime cap before you need the money. A buyer who opens an FHSA the same year they plan to buy only has one year of room, not five.
If you know you’ll buy in the next several years, open the FHSA now even with a small first deposit. The account is what generates room, not the balance sitting in it, so opening it early is the lever that matters most.
Get a sense of what your income and down payment can support with an instant pre-approval at pekoe.ca/rates, which also shows today’s live rates.
Getting the Full First-Time Buyer Picture
Stacking the FHSA and HBP is one piece of a larger first-time buyer plan. Our first-time home buyer guide walks through the rest of the process, from qualifying to closing costs, and if you’re buying in Ontario, our first-time buyer guide for Ontario covers the province-specific pieces.
What the Stacked Down Payment Actually Buys You
Knowing your combined FHSA and HBP total is only useful next to the purchase price it has to support.
The affordability calculator works backwards from your income to the mortgage you qualify for, and how much mortgage can I afford explains why the stress test, not your contract rate, sets that ceiling. Alberta buyers should also read first-time buyer in Alberta, since there is no provincial land transfer tax to budget for.
The citable fact: FHSA and HBP funds increase your down payment, but your qualifying rate still sets the maximum mortgage behind it.
Where to Get This Confirmed for Your Own File
We can tell you how much down payment your purchase needs and how lenders treat FHSA and HBP funds at closing. That is our side of it.
The tax side belongs with the Canada Revenue Agency or your own accountant. Contribution room, carry-forward, the repayment schedule on an HBP withdrawal, and what happens if a withdrawal goes wrong are all CRA matters, and both limits can change in a federal budget. Confirm the current numbers and your own room with CRA or an accountant before you build a closing plan around them.
The short version: treat this page as a map of how the two accounts fit together, then have an accountant confirm your own contribution room and repayment obligations before you withdraw.
Frequently Asked Questions
Can I use the FHSA and HBP for the same home purchase?
Yes. The two programmes are independent, and a qualifying first-time buyer can withdraw from both an FHSA and an RRSP under the HBP for the same closing. Each withdrawal follows its own rules and paperwork, but there is no restriction against using them together.
Does my spouse get their own separate FHSA and HBP room?
Yes, if your spouse or partner also qualifies as a first-time buyer, they have their own FHSA lifetime limit and their own HBP withdrawal limit, calculated independently of yours. That is what allows a qualifying couple to reach a combined total roughly double the individual limits.
Do I have to repay money I withdraw from my FHSA?
No. FHSA withdrawals for a qualifying home purchase are tax-free and do not need to be repaid to the account. This is different from the HBP, where the withdrawn amount must be repaid to your RRSP over 15 years.
What happens if I withdraw from my FHSA or HBP but don’t end up buying a home in time?
Both programmes require a written agreement to buy or build in place before October 1 of the year following your withdrawal. If that deadline is missed, the withdrawal can lose its tax-free treatment, so confirm your closing timeline before you withdraw either amount.
Can I use FHSA and HBP funds alongside a gifted down payment?
Generally yes. Gifted funds, FHSA withdrawals, and HBP withdrawals can all form part of the same down payment, as long as each source is documented for your lender. Speak with your broker about how to present multiple funding sources cleanly at closing.
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Structuring a down payment across an FHSA, an HBP withdrawal, and your own savings takes coordination with your lender and your lawyer, and getting the order and timing right protects the tax-free status of both accounts.
Talk to Pekoe Mortgages before you withdraw a dollar, so we can map your FHSA and HBP timeline to your actual closing date.
