The First Home
Savings Plan
A step-by-step guide to the FHSA, HBP, and TFSA for Canadian first-time buyers. Built-in savings calculator, 12-month pre-purchase checklist, and the tithe question most homebuying guides ignore.
The Canadian First-Home Toolkit
Canada gives first-time buyers three powerful savings vehicles. Most people know about one. Using all three correctly — in the right order — can save tens of thousands of dollars. Here's what each one actually is.
- $8,000/year contribution limit
- $40,000 lifetime limit
- Contributions are tax-deductible (like RRSP)
- Qualifying withdrawals are tax-free (like TFSA)
- Best of both worlds — unmatched in Canadian tax law
- Must be a first-time buyer, Canadian resident, 18+
- Room accumulates from the year you open the account
- Carry-forward: up to $8,000 of unused room, once
- Withdraw up to $60,000 from your RRSP
- No tax on withdrawal — it's a loan from yourself
- Repay over 15 years (starts 2 years after withdrawal)
- Missed repayments are added to your taxable income
- Funds must be in RRSP for at least 90 days
- Can combine with FHSA: $100K per person total
- Couples: $200K combined ($100K each)
- $7,000/year in 2024 (cumulative since 2009)
- After-tax contributions, tax-free growth & withdrawal
- No purpose restriction — use for anything
- Withdrawn room restores the following January
- Doesn't affect OAS/GIS eligibility in retirement
- Best complement when FHSA room is maxed
- Also useful for savings beyond your down payment
Which account should I prioritize?
| Your Situation | Recommended Approach |
|---|---|
| Haven't opened FHSA yet | Open it today — do this before anything else |
| Income under $55,000 | FHSA + TFSA (RRSP tax deduction adds less value at lower incomes) |
| Income $55K–$100K | FHSA first, then split between RRSP and TFSA |
| Income over $100K | FHSA first, then maximize RRSP (the deduction is significant) |
| Purchase in under 2 years | FHSA + TFSA (RRSP HBP requires 90-day holding period) |
| Purchase in 3–7 years | FHSA → RRSP → TFSA in priority order |
| You and spouse both buying | Both open FHSAs: $80K combined FHSA + $120K HBP = $200K total |
CMHC Insurance — Know the Thresholds
Less than 20% down payment requires CMHC mortgage insurance — a premium added to your mortgage balance, not paid upfront.
| Down Payment | CMHC Premium | On a $600K Purchase |
|---|---|---|
| 5–9.99% | 4.00% of mortgage | ~$22,800 added to mortgage |
| 10–14.99% | 3.10% of mortgage | ~$16,650 added to mortgage |
| 15–19.99% | 2.80% of mortgage | ~$13,440 added to mortgage |
| 20%+ | None | $0 |
Your Savings Plan
Fill in your numbers. The calculator will show your monthly contribution target, projected balance at purchase, and estimated tax refund from FHSA contributions.
Year-by-Year FHSA Projection
| Year | Annual Contribution | Cumulative Saved | Balance (with growth) | Annual Tax Refund |
|---|---|---|---|---|
| Enter your details above to generate your projection. | ||||
Your Savings Commitment
12-Month Pre-Purchase Checklist
Work through this in sequence. Each phase builds on the last. Don't skip the early phases to get to the exciting ones — the groundwork is where deals are won or lost.
- Open FHSA (if not already — do this regardless of when you plan to buy)
- Check your credit score — free via Borrowell or Credit Karma. Minimum 680 for best rates; 720+ for best terms
- Pull your credit report — look for errors (common and correctable)
- Emergency fund fully funded — do not deplete this for your down payment
- Consumer debt plan in place — lenders look at TDS ratio (total debt service)
- Initial pre-approval conversation with a mortgage broker (broker vs. bank — see note below)
- Research neighbourhoods that fit your criteria and budget honestly
- Formal mortgage pre-approval with your broker — get a rate hold (usually 90–120 days)
- Write your homebuying list: must-have vs. nice-to-have. Be ruthlessly honest about what you actually need
- Calculate true cost of homeownership: mortgage + property tax + utilities + maintenance (~1–2% of home value/year)
- Research real estate agents — get referrals, check reviews, interview at least two
- Start attending open houses — even if not ready to offer. Learn the market
- Understand closing costs: land transfer tax (Ontario: 0.5–2.5%), legal fees (~$1,500–2,500), title insurance (~$300), home inspection (~$500)
- Real estate agent engaged — signed buyer representation agreement
- Home inspector identified (get referrals — not a name from the listing agent)
- Real estate lawyer identified — get a referral and confirm availability
- Down payment in safe, liquid accounts — not in investments. Market timing risk is real when you have a purchase date
- FHSA withdrawal process understood — contact your financial institution, review CRA Form RC725
- Moving costs estimated and budgeted
- Insurance quotes obtained — you need proof of home insurance before closing
- Do not waive your financing condition — this protects you if the mortgage falls through
- Do not waive your home inspection — in most situations this is not worth the risk saved
- FHSA withdrawal form submitted to financial institution (allow processing time)
- HBP withdrawal (CRA T1028) completed if using RRSP — confirm 90-day holding rule is met
- Lawyer retainer paid; review Statement of Adjustments carefully
- Cashable GIC or HISA confirmed — all funds accessible on closing date
- Utilities transfer arranged for closing date
- Final walkthrough completed before closing
The Tithe Question
Most homebuying guides don't include this section. This one does. If you're a Christian saving aggressively for a house, this question will come up. Better to think through it now than mid-purchase.
The tension is real: a 20% down payment on a $600,000 home is $120,000. If you're earning $85,000 and saving $1,500/month, that's a 6.7-year runway — longer if prices rise. Meanwhile, 10% giving on $85,000 is $8,500/year. The math can make giving feel like the biggest obstacle to ownership.
It's worth thinking through your position before the pressure of a purchase timeline forces the decision for you.
If your purchase is 4+ years away, this is almost always the right call. Your giving practice is more valuable than a marginally faster path to ownership. The discipline of continuing to give while building toward a big goal is formative — it shapes the kind of owner you'll become.
If the purchase is 1–2 years away and you're in a genuinely tight margin season, a time-bounded, written reduction is honest and intentional. Not ideal — but far better than an indefinite drift away from giving. Write the date. Hold to it. Tell someone.
This isn't a cop-out. If your giving and your homebuying feel genuinely in tension, that tension deserves to be brought to God before it's resolved by circumstance. Some men hear something specific. Most find that clarity comes in the asking.