Smart Advice Buying or Renting a Home

The FHSA, RRSP Home Buyers’ Plan and TFSA can help you save for your first home. Which one is right for you?
Jul. 14, 2023 2-minute read


  FHSA RRSP Home Buyer’s’ Plan TFSA
For first-time home buyers only? Yes Yes No
Who is eligible? Canadian residents with a valid Social Insurance Number (SIN) who are at least age 18 and qualify as first-time home buyers Canadian residents with a valid SIN who are under age 71, have earned income and file a tax return in Canada Canadian residents with a valid SIN who are at least the age of majority in their province or territory
How much can I contribute annually? $8,000, plus up to $8,000 of your unused contribution room, up to the maximum lifetime limit of $40,000 $30,780 for 2023; you can contribute 18% of the previous year’s earned income to your RRSP, less any pension adjustment, up to the maximum annual limit $6,500 for 2023, plus your unused contribution room and any amounts you’ve withdrawn from previous years
Are contributions tax-deductible? Yes Yes No
What’s the maximum withdrawal limit? No limit You can withdraw up to $35,000 for costs associated with a first-time home purchase No limit
Are withdrawals tax-free? Yes, if they meet the conditions for a qualifying withdrawal Yes, if the withdrawals are used towards the purchase of a qualifying first home and you repay the full amount within 15 years Yes
Do withdrawals have to be repaid? No Yes, money withdrawn from your RRSP through the Home Buyers’ Plan must be repaid to your RRSP in equal payments over the next 15 years No

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