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Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.
FHSA better for most first-time buyers — no repayment, combine both for $100K+ per person
Total Tax-Free Down Payment Available:
| Feature | FHSA | RRSP HBP |
|---|---|---|
| Maximum per person | $40,000 | $60,000 |
| Tax deduction on contribution | Yes | Yes |
| Withdrawal tax-free? | Yes — permanently | Yes — but must repay |
| Repayment required? | No | Yes — 1/15th/year over 15 years |
| Penalty for non-repayment | N/A | Added to taxable income |
| RRSP room consumed? | No | No (withdraws from RRSP, repays to RRSP) |
| 90-day holding rule? | No | Yes — must be in RRSP 90+ days |
| Can be combined with the other? | Yes | Yes |
| Can transfer to RRSP if unused? | Yes — without using RRSP room | N/A |
| Must close account if no home? | By age 71 or year 15 after opening | No — RRSP continues |
The FHSA is almost universally superior to the HBP for new homebuyers because:
The HBP ($60,000 limit) has a higher cap than the FHSA ($40,000 lifetime). For buyers who have already accumulated significant RRSP savings and want maximum down payment, the HBP provides access to $60,000 vs. the FHSA's $40,000. The best strategy is to use both simultaneously.
| Strategy | Amount at Purchase | Tax Refund Earned | Repayment Required | Net Advantage |
|---|---|---|---|---|
| FHSA only (5 years × $8K) | $40,000 | ~$16,000 (at 40%) | $0 | $40,000 tax-free + $16K refund |
| HBP only (existing RRSP) | $60,000 | Already earned | $4,000/yr × 15 yrs | $60,000 but must repay |
| FHSA + HBP combined | $100,000 | $16,000+ refunds | HBP portion only | Maximum down payment |
If you open an FHSA but never purchase a qualifying home, you have until the end of the 15th year after opening (or December 31 of the year you turn 71) to either make a qualifying withdrawal or transfer the balance to your RRSP or RRIF — without using RRSP contribution room. This is a highly attractive fallback: you got the tax deduction on the way in, the growth inside the FHSA was tax-free, and the transfer to RRSP doesn't cost you RRSP room. See our FHSA-to-RRSP transfer guide.
Earn up to 4.5% while your FHSA savings grow. No fees — every dollar counts toward your down payment. Code BREMO2026.
Ready to invest? Open a no-fee account first. Get $20 from KOHO with code BREMO2026 →