FHSA and Home Buyers' Plan: Limits, Rules and a Calgary Example

The First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) are two federal ways to put savings toward a first home. The FHSA allows $8,000 of room in the first year and a $40,000 ceiling in total and CRA says only the account holder can claim the contribution as a deduction. The HBP lets you take up to $60,000 out of an RRSP. CRA says you can use both for the same qualifying home. This is general information, so confirm your own numbers with an accountant and a mortgage broker.

The two programs side by side

	FHSA	Home Buyers’ Plan
What it is	A registered account opened for buying a first home	A withdrawal from your RRSP
Annual room	$8,000 in the year you open your first FHSA	Not an annual limit
Carry forward	Unused room carries forward and CRA caps the carryforward at $8,000	Not applicable
Total limit	$40,000 ceiling across all years, reduced by prior contributions and transfers	Currently $60,000 withdrawal limit
Tax on contributions	Deductible for the account holder	Not applicable
Repayment	CRA’s pages used here describe none for a qualifying withdrawal	Repaid over 15 years

Two cautions. First, the FHSA has a maximum participation period of 15 years under CRA’s rules, so check CRA’s page on how the end of the period works. Second, the FHSA lifetime limit, the annual room and the carryforward interact. Use CRA’s own room calculation or your CRA My Account figure rather than adding numbers in your head.

How the Home Buyers’ Plan repayment works

For withdrawals made between January 1, 2026 and December 31, 2028, CRA says the start of the 15 year repayment period is deferred to the fifth year after the year of the first withdrawal. CRA’s example is a first withdrawal in 2026, which makes 2031 the first repayment year. Confirm the schedule that applies to you on CRA’s page.

The first-time home buyers’ tax credit

CRA’s line 31270 page says you can claim up to $10,000 for the purchase of a qualifying home. That page covers the 2025 tax year and the page for 2026 was not confirmed for this post. The credit is non-refundable, so it reduces tax owed and does not produce a refund beyond that. The conditions are:

• The home is registered in your name, your spouse’s or your common-law partner’s and is located in Canada.
• Neither you nor your spouse or common-law partner owned another home in the year of acquisition or the four preceding years, with an exception for a person with a disability.
• You intend to occupy the home as your principal residence within one year of acquiring it.

If both partners are eligible, the credit can be divided, but the total for one home cannot exceed the maximum.

An illustration at Calgary prices

This is an illustration, not a forecast and not advice. CREB’s September 2026 benchmark prices for the City of Calgary are $566,700 for all residential, $739,400 detached, $685,200 semi-detached, $412,400 row and $291,400 apartment. Benchmark means the typical home by CREB’s definition, so it is not a price for any listed home.

Finance Canada’s published rule for insured mortgages is a 5 per cent minimum down payment on the first $500,000 of the price and 10 per cent on the portion between $500,000 and $1.5 million. Applying it:

Property type	Benchmark price	Minimum down payment under that rule
Apartment	$291,400	$14,570
Row	$412,400	$20,620
All residential	$566,700	$31,670
Semi-detached	$685,200	$43,520
Detached	$739,400	$48,940

If a buyer reached the full FHSA ceiling of $40,000 and used the full HBP limit of $60,000, the two sources total $100,000. That is the arithmetic of the published limits. It does not say what any one person can save or qualify for. Lenders also look at your income, debts and the stress test and the amount you borrow sets the payment. A mortgage broker prices that and the mortgage calculator gives a first estimate.

What the numbers do not tell you

The program limits are ceilings. They show the most the rules allow, not what you will have saved or what a lender will accept. A benchmark price is the typical home in a CREB category and the home you buy may sit above or below it. The down payment table shows the minimum under the published insured mortgage rule and a larger down payment changes the amount borrowed. If a purchase price reaches $1.5 million, the insured mortgage rule no longer applies, since Finance Canada sets the maximum property value for insured mortgages below that figure.

Timing matters too. FHSA room builds over the years you hold an account. The HBP is a withdrawal from an RRSP and carries its own repayment schedule. Both have conditions on the date of withdrawal, so ask your bank or an accountant to check your situation before you sign a purchase agreement.

Other costs to set aside

Alberta charges no land transfer tax. The Land Titles Act fee is $50 plus $5 for each $5,000 or part of it of the property value and the same formula applies to the mortgage principal. The land title fees calculator does the arithmetic. Add legal fees, an inspection and moving costs to your list.

Questions to ask before you withdraw

1. How much FHSA room do I have this year, according to CRA?
2. Do I meet CRA’s conditions for a qualifying withdrawal on the date I withdraw?
3. If I use the HBP as well, what is the repayment schedule?
4. Does my lender accept these funds as my down payment?
5. Have I left room for closing costs?

The first-time home buyers guide puts these steps in order. Derek Bryer, a licensed associate with eXp Realty and an Accredited Buyer’s Representative, can walk through a purchase with you, while an accountant advises on the tax side. Start at the buyers page or contact Derek on 587-325-2992.