FHSA and the Home Buyers Plan: How Calgary First-Time Buyers Can Stack Up to $100,000 Tax-Free

Most first-time buyers in Calgary know the FHSA exists. Far fewer realize they can combine it with the RRSP Home Buyers Plan and put up to $100,000 in tax-sheltered savings toward a single home purchase — or $200,000 as a couple. These two programs work together, and understanding how to use both will change how you approach saving for your down payment.

Here is how the FHSA mortgage down payment strategy works in 2026, what the rules are, and how to set it up before you start shopping for a home in Calgary.

What Is the First Home Savings Account (FHSA)?

The First Home Savings Account is a registered savings plan introduced by the federal government in 2023. It is designed specifically for first-time home buyers who want to save toward a home purchase in a tax-efficient way.

Here is what makes it unusually powerful: contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy your first home are completely tax-free (like a TFSA). You get the deduction going in and pay no tax coming out. No other registered account works this way.

The contribution limits are:

• Annual limit: $8,000 per year
• Lifetime limit: $40,000 in contributions
• Carryforward: Up to $8,000 of unused room carries forward one year — so if you only contributed $3,000 in year one, you can contribute up to $13,000 in year two

Investment growth inside the account is also sheltered, so your balance at the time of withdrawal may be higher than $40,000 depending on how you have invested the funds.

One more important detail: FHSA withdrawals for a qualifying home purchase do not need to be repaid. The money is yours, tax-free, with no strings attached.

What Is the RRSP Home Buyers Plan (HBP)?

The Home Buyers Plan has been around since 1992. It lets first-time buyers withdraw money from their RRSP tax-free for a home purchase — with the understanding that the amount gets repaid into the RRSP over time.

As of 2024, the withdrawal limit under the HBP was increased to $60,000 per person, up from the previous $35,000. That is a significant increase that many buyers are not aware of yet.

The key rules for the HBP:

• You can withdraw up to $60,000 from your RRSP tax-free for a qualifying first home
• The funds must have been in the RRSP for at least 90 days before you withdraw them
• Unlike the FHSA, HBP withdrawals must be repaid into your RRSP over 15 years
• Repayments begin in the second year after the year you made the withdrawal — there is a grace period built in
• If you do not make your annual repayment, that year's required amount is added to your taxable income

The HBP is a loan from your future self. It is still a strong tool — especially for buyers who have been contributing to an RRSP for several years — but the repayment obligation is real and worth planning for.

How the FHSA and HBP Work Together for a Calgary Down Payment

Here is where the two programs become genuinely powerful. They are separate programs, which means you can use both on the same home purchase.

For context, the benchmark home price in Calgary is approximately $565,600 as of early 2026. A 20% down payment — which avoids mortgage default insurance — is about $113,000. A couple using both programs could cover that in full from tax-sheltered savings alone.

Even a single buyer who has maximized the FHSA and has RRSP savings to draw on can reach 20% on a starter condo or put down a strong 15-20% on a benchmark-priced home. The math works in your favour if you plan ahead.

What "First-Time Buyer" Means for Both Programs

Both the FHSA and the HBP use a similar definition of "first-time buyer," but it is not quite what people expect. You qualify as a first-time buyer if you have not owned a home that you lived in at any point in the current year or the preceding four calendar years.

That means if you owned a home but sold it five or more years ago, you may qualify again. Couples where one partner has never owned a home but the other has — and has been renting for at least four years — may have one eligible partner who can use both programs, while the other cannot.

The programs assess eligibility individually. If you and your partner are buying together, each person must meet the first-time buyer definition independently to use their own FHSA or HBP.

Step-by-Step: Setting Up the FHSA and HBP

If you are planning to buy a home in the next one to five years, here is the practical sequence:

Step 1: Open an FHSA as soon as possible. You do not need to contribute immediately — the annual room ($8,000) only starts accumulating once the account is open. Opening it today gives you more contribution room over time. Any bank, credit union, or investment platform that offers registered accounts can open one.

Step 2: Contribute to your FHSA and RRSP each year. Both contributions reduce your taxable income for the year, which means a larger tax refund. Many buyers put that refund back into the FHSA or RRSP the following year, compounding the benefit.

Step 3: Watch the 90-day rule for your RRSP. If you plan to use the HBP, any RRSP contributions must sit in the account for at least 90 days before you can withdraw them under the plan. Do not make a last-minute RRSP contribution and expect to use it for a purchase closing in 60 days.

Step 4: When you have a firm purchase agreement, submit your FHSA withdrawal request. You will need a completed T1036 form (Home Buyers Plan Request to Withdraw Funds from an RRSP) for the HBP, and a separate withdrawal form for the FHSA. Your financial institution provides these.

Step 5: Work with a mortgage broker before you finalize your down payment plan. How much you bring to the table — and which programs you draw on — affects your qualifying amount, your mortgage default insurance costs, and your overall payment structure. A broker can help you optimize the combination.

FHSA Mortgage Down Payment: Common Mistakes to Avoid

Opening the account too late. The FHSA only builds room while it is open. If you open one in the year you buy, you may only be eligible for $8,000 rather than the full $40,000. Earlier is better.

Over-contributing. The carryforward provision allows you to contribute up to $16,000 in a single year (your current year's $8,000 plus up to $8,000 carried from the prior year). But you cannot carry forward more than one year's unused room at a time. Over-contributing triggers a tax penalty of 1% per month on the excess amount.

Treating the HBP repayment as optional. If you do not make your scheduled HBP repayment in a given year, that amount is added to your taxable income. Over 15 years, that adds up. Build the annual repayment into your budget from the start.

Withdrawing from the FHSA for non-qualifying purposes. If you take money out of the FHSA for anything other than a qualifying home purchase, the withdrawal is fully taxable. There are no partial exceptions. If your plans change and you will not be buying a home, you can transfer the FHSA balance to an RRSP without tax consequences — but you lose the FHSA room permanently.

For a full breakdown of down payment sources, minimum requirements, and how gifted funds work, our guide to down payment requirements in Canada covers the details.

How These Programs Fit Into a Calgary Mortgage

Once you have assembled your down payment, how it is structured matters to your mortgage application.

A down payment of 20% or more means no mortgage default insurance (CMHC, Sagen, or Canada Guaranty). On a $565,600 home, skipping insurance saves approximately $13,000 added to your mortgage — and reduces your total borrowing cost over the amortization period.

If your combined FHSA and HBP funds get you to 20%, that is the most cost-effective outcome. If they get you to 15%, you still qualify for an insured mortgage — the insurance premium is 2.8% of the loan amount, which is manageable.

The bigger picture: programs like the FHSA and HBP affect how much you need to save from employment income alone. If you can cover 15-20% of the purchase price from registered savings, you may need significantly less cash in a regular chequing or savings account — which can accelerate your timeline.

To understand how your income affects qualifying amounts in today's market, our post on how much income you need to qualify in Calgary in 2026 walks through the numbers by property type and down payment size.

How Gold Lion Mortgages Can Help

The FHSA and Home Buyers Plan are powerful tools — but they work best when coordinated with your mortgage structure from the start. The down payment amount, where it comes from, and how it is timed all feed into your application.

At Gold Lion Mortgages, we work with first-time buyers across Calgary regularly. We can help you understand how your registered savings fit into your qualifying picture, which lender will work best for your situation, and how to structure your application to get the strongest possible outcome.

If you want to map out your plan before you start shopping — or if you already have an accepted offer and need to move quickly — give us a call. There is no cost and no obligation for the initial conversation.

You can also browse our full guide to first-time home buyer programs in Canada for a broader look at what else is available alongside the FHSA and HBP.

Call Surinderpal at (403) 404-0048 or apply online at goldlionmortgages.com/apply.

Frequently Asked Questions

What is the maximum I can save in an FHSA for a home purchase?

You can contribute up to $8,000 per year, with a lifetime contribution limit of $40,000. Up to $8,000 of unused room can carry forward one year, so it is possible to contribute up to $16,000 in a single year if you missed contributions previously. Investment growth inside the account is sheltered, so your actual withdrawal amount may exceed the $40,000 you contributed.

Can I use the FHSA and the Home Buyers Plan together on the same purchase?

Yes. The two programs are independent and can both be used toward the same qualifying home purchase. A single buyer can withdraw up to $40,000 from an FHSA and up to $60,000 from an RRSP under the HBP — a combined total of up to $100,000 toward a down payment. Each person in a couple can use both programs independently, bringing the combined maximum to $200,000.

Do FHSA withdrawals need to be repaid?

No. Qualifying FHSA withdrawals for a first home purchase never need to be repaid. This is the key advantage the FHSA has over the HBP. If funds are withdrawn for a non-qualifying purpose, the amount is added to your taxable income for that year. If your plans change and you are not buying a home, you can transfer the balance to an RRSP without tax consequences.

How much can two first-time buyers save using both programs together?

Each person can use both programs independently. With one person withdrawing $40,000 from an FHSA and $60,000 from an RRSP under the HBP, that is $100,000 per person. Two qualifying first-time buyers can combine up to $200,000 in registered savings toward a single purchase — enough to cover a 20% down payment on many Calgary homes at current benchmark prices.

What is the 90-day rule for the Home Buyers Plan?

RRSP funds must have been in the account for at least 90 days before you can withdraw them under the HBP. Contributions made less than 90 days before your withdrawal date will not count. If you are planning to use the HBP, make sure your RRSP contributions are in place well ahead of your expected closing date. The CRA administers this rule and will not make exceptions for timing oversights. For a full overview of current government homebuyer programs, the CRA's FHSA page is the authoritative source.

Published: April 9, 2026. Mortgage guidelines, lender programs, and qualifying requirements change. Contact Gold Lion Mortgages to confirm current requirements for your file.