Your Down‑Payment Toolkit in 2026: FHSA + Home Buyers’ Plan (HBP) — New Limits, Bigger Impact

Two powerful accounts, now stronger together

• The First Home Savings Account (FHSA) lets first‑time buyers contribute $8,000 per year, $40,000 lifetime, with tax‑deductible contributions and tax‑free qualified withdrawals toward a first home. Uptake has been strong: ~484,000 contributors in 2023, with median contributions of $8,000; by April 2024, 750,000+ accounts opened.

• Budget 2024 raised the HBP withdrawal limit to $60,000 (from $35,000), extended the repayment grace to 5 years for withdrawals between 2022–2025, and coordinated with FHSA for faster down‑payment accumulation.

Why FHSA is a “must consider”

The FHSA’s combination of RRSP‑style deductions and TFSA‑style tax‑free withdrawals makes it uniquely efficient—often described as the best savings deal for first‑time buyers. Surveys show more than half of first‑time buyers plan to use an FHSA.

Practical stacking strategy

1. Max your FHSA first: Contribute $8,000 annually to capture tax deductions and tax‑free growth.

2. Use HBP to top up: Withdraw up to $60,000 from RRSPs when you’re ready, then use the 5‑year grace before repayments start.

3. Coordinate with mortgage pre‑approval: Your broker will incorporate FHSA/HBP funds, debt ratios, and the new 30‑year amortization rules to optimize affordability.

Tip: Parents can assist by funding an FHSA in the child’s name or sharing strategies—awareness and usage are rising across generations.

Want a personalized savings‑to‑purchase roadmap? I can map your FHSA/HBP contributions, expected closing date, and pre‑approval targets into a 12–24 month plan.