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By Jason Heath, CFP on February 10, 2025
Estimated reading time: 6 minutes

By Jason Heath, CFP on February 10, 2025
Estimated reading time: 6 minutes

First-time home buyers in Canada can pull from savings in registered accounts to fund their down payment. Here’s how to combine FHSA and RRSP withdrawals.

My partner and I plan to buy a $600,000 home in two to three years with a 20% down payment. Can we each use $40,000 from our FHSAs and $60,000 from our RRSPs through the Home Buyers’ Plan, even though we would only need $120,000 for the down payment? We would use the additional $80,000 for any necessary renos. Over the next few years, we would continue investing in our RRSPs and invest the tax refunds in our TFSAs, even though we plan to eventually pull the full $120,000 from our RRSPs, instead of keeping that money locked in.

—Ryan

A first-time home buyer can mix and match different accounts to fund their home down payment. The recently introduced first home savings account (FHSA) is primarily for an eligible home purchase. Through the Home Buyers’ Plan (HBP), you may also be able to withdraw from a registered retirement savings plan (RRSP) up to certain limits. Tax-free savings accounts (TFSAs) are flexible accounts that can also be used with no requirement to repay what you withdraw.

So, what is the right combination of accounts, and what strategy should you follow to maximize them?

You mention a target 20% down payment, Ryan. There’s some significance to this for others reading along. If your mortgage is no more than 80% of your purchase price, your closing costs to purchase will be less.

If you come up short of a 20% down payment, you will typically need to pay for

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