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Save for your First Home Purchase by Combining your RRSP, TFSA & FHSA


Combine a RRSP, FHSA and TFSA for a first home purchase

With today's home prices being so expensive, first-home buyers need all the help they can get.


Here are three ways a first-time buyer can use investments to come up with a down payment:

1. RRSP Withdrawal - Home Buyer's Plan (HBP)

· The HBP allows for a lump sum withdrawal of up to $35,000 from an individual’s RRSP or spousal RRSP.

· The account holder only has to repay 1/15 of the withdrawn amount each year back to their RRSP/SP RRSP starting in the second year after the withdrawal.

2. Tax-Free Savings Account Withdrawal (TFSA)

· The annual TFSA contribution limit for each individual is set at $7,000 for 2024 (limits vary in previous years).

· Unused contribution room can be carried forward from previous years up to a maximum of $95,000 for 2024.

· Investment earnings in a TFSA grow tax-free for life.

· TFSA withdrawals are tax-free.

3. First Home Savings Account Withdrawal (FHSA)

· Individuals can contribute up to $40,000 for a first home purchase for a period of 15 years.

· Unused contribution room can be carried forward up to a maximum of $8,000 from the prior years for as long as the account is open.

· Contributions made to an FHSA are tax-deductible from income.

· Pay no taxes on any investment earnings or withdrawals used to purchase a qualifying home or when transferred to an RRSP/RIF.

Combine a RRSP, FHSA and TFSA for a first home purchase

Two people = twice the amount! These amounts can be doubled when used with spouses or common-law partners.

Assuming you have the following balances after 5-10 years, here is a simple example of when two people combine their efforts:

HBP Withdrawal $35,000

TFSA Savings $25,000

FHSA Savings $40,000

Total $100,000 x 2 people = $200,000 down payment!!

To learn more about setting up a First Home Savings Account and how you or a family member can use this strategy for a first home purchase, call me at 604.940.8617.

[The figures in the above example above are only an illustration and will be different for each individual]

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