Home Ownership Planning

Discover how each registered plan can help you reach your goals

Combine these registered plans to help purchase your first home.

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FHSA

First Home Savings Account

A new registered plan where contributions are tax-deductible and investment earnings and withdrawals are tax-free if used to purchase your first home.

Ideal for:

Saving for home ownership.

Ideal for:

Saving for home ownership.

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HBP

Home Buyers’ Plan

Allows a first-time home buyer to withdraw from their RRSP to purchase or build a home without having to pay tax on the withdrawal.

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RRSP

Registered Retirement Savings Plan

An RRSP is a Canadian tax-advantaged savings plan, where you can contribute funds for future needs.

Ideal for:

Saving for retirement.

Ideal for:

Short and long-term goals.

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TFSA

Tax Free Savings Account

A TFSA is a registered plan allowing individuals to set money aside tax-free throughout their lifetime.

Current Contribution Amounts

FHSA

$8,000

Individuals can contribute $8,000 annually, up to a maximum of $40,000.

HBP

$60,000

Individuals can borrow up to $60,000 from their RRSP.

RRSP

$32,490

Maximum annual limit or up to 18% of the previous year’s earned income.

$7,000

Maximum annual limit for 2025.

TFSA
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FHSA + HBP

Combine the FHSA and HBP and save up to $100k to purchase the same qualifying home.

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HBP + RRSP

Combine the HBP and RRSP to use your savings for a down payment.

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Taxation on Contribution Amounts, Savings Growth, and Withdrawals

FHSA
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Contributions are tax deductible

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Savings growth is tax-free.

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Withdrawals are NOT taxable if used to buy a home.

HBP
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You must start repaying your RRSP withdrawal within five years after the initial withdrawal and have up to 15 years to repay the full amount.

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Amounts not repaid are taxable.

RRSP
A check mark in a circle on a white background.

Contributions are tax deductible

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Savings growth is tax-deferred.

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Withdrawals are taxable.

TFSA
A black and white x in a circle on a white background.

Contributions are NOT tax deductible

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Savings growth is tax-free.

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Withdrawals are NOT taxable.

Carry Forward Unused Contribution Room

Yes

Up to a maximum of $8,000, to use in the following year.

FHSA

N/A

HBP

Yes

Yes, until December 31 of the year you turn 71.

RRSP

Yes

Maximum annual limit for 2025.

TFSA

Talk to us about which investment option, or combination of options, will help you reach your home ownership goals.

Source: Canada Revenue Agency 

Investment Planning Counsel Inc. provides this publication for informational purposes only, and it is not and should not be construed as professional advice to any individual. The information contained in this publication is based on material believed to be reliable at the time of publication, but IPC cannot guarantee the information is accurate or complete.

Individuals should contact their IPC Advisor for professional advice regarding their personal circumstances and/or financial position.

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