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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
| 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adjustment, up to the maximum annual limit | $6,500 for 2023, plus your unused contribution room and any amounts you’ve withdrawn from previous years |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 $60,000 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 | No | Yes, money withdrawn from your RRSP through the Home Buyers’ Plan must be repaid to your RRSP in equal payments over the next 15 years | No |
