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Stage · Buying your first home in Canada

Saving for your down payment

Build the deposit with the right tax-advantaged account. This is where the FHSA and HBP matter most. Province overlays kick in for matched savings and first-home savings incentives.

Reviewed by Ben Stevenson, Managing Editor, Canadian Money Help Updated April 20, 2026 Methodology

What to do this week

  1. Open an FHSA if you qualify. The earliest year you contribute starts your 15-year clock and $40,000 lifetime room.
  2. Set a specific down payment target using the price band you are shopping in and Canada's 5/10/20 rules.
  3. If you already have RRSP room, map out an FHSA-first then HBP-top-up strategy rather than choosing one.

What to avoid

  • Contributing to an FHSA before you have confirmed residency and age eligibility. Withdrawals for a non-qualifying purchase are taxed.
  • Parking the down payment in equities if your target close is inside three years. Short-horizon equity risk undoes the FHSA tax benefit in one bad quarter.
  • Using the HBP without a repayment plan. Missed repayments become taxable income for that year.

Calculators for this stage

Fhsa Growth Projection Hbp Vs Fhsa Down Payment Target

Forms to file at this stage

FHSA account opening

Open at any federally regulated institution. Most major banks, credit unions, and online brokers offer FHSAs. You will need government ID and your SIN.

CRA: First Home Savings Account →

Frequently asked

Should I max the FHSA before opening an RRSP?

For a home purchase inside 15 years, yes. The FHSA gives you the RRSP-style deduction plus the TFSA-style tax-free withdrawal, with no repayment requirement. It is strictly better than either for first-home savings until you hit the $40,000 lifetime cap.

Can I use both FHSA and HBP for the same purchase?

Yes. The two programs stack. A person with both fully funded could bring up to $100,000 of tax-advantaged cash to a purchase; a couple could bring up to $200,000.

What happens if I open an FHSA but do not buy a home?

You can keep the account open for 15 years or until the end of the year you turn 71. Any balance transfers to your RRSP or RRIF without using RRSP room and without tax.

How fast can I access HBP funds after contributing?

RRSP contributions must sit in the account for at least 90 days before being withdrawn through the HBP. Time new RRSP contributions around this rule if you plan to use the HBP within a year.

Next stage

Getting pre-approved →