Using the FHSA and RRSP Home Buyers’ Plan to Buy in East Hill

Quick answer: As of 2026, a First Home Savings Account (FHSA) lets you save up to $8,000 a year, to $40,000 in total, and withdraw it tax-free for a first home. The RRSP Home Buyers’ Plan (HBP) lets you borrow up to $60,000 from your RRSPs. Canada.ca says you can use both for the same qualifying home.

Saving a down payment is the hardest part of buying a first home for most people. Two federal programs can help a lot if you start early and understand the timing. Here’s how they work for someone planning to buy in East Hill.

This is general information, not financial or tax advice. Rules change, so confirm the current details with your accountant, financial institution or the Canada Revenue Agency.

The First Home Savings Account (FHSA)

The FHSA combines two good things: contributions are generally tax-deductible like an RRSP, and a qualifying withdrawal for your first home is tax-free like a TFSA.

The key limits (as of 2026)

Annual limit: $8,000 of participation room in the year you open it.
Lifetime limit: $40,000.
Carry-forward: unused room can be carried forward, up to $8,000.
Time limit: the account generally has to be closed by the end of the year of the 15th anniversary of opening it, or the year you turn 71, whichever comes first.

Who can open one

According to the CRA, you must be a Canadian resident, at least 18 (19 in some provinces), and no older than 71 at the end of the year you open it. You must also be a first-time home buyer. For the FHSA, that generally means you haven’t lived in a home you or your spouse or common-law partner owned in the current year or the previous four calendar years.

Why opening early matters

Your room only starts to build once you open the account. Even if you can’t contribute much yet, opening an FHSA now starts the clock on your room.

The RRSP Home Buyers’ Plan (HBP)

The HBP lets you withdraw money from your RRSPs to buy or build a qualifying home, without paying tax on the withdrawal, as long as you pay it back on schedule.

Withdrawal limit: as of 2026, the CRA says the limit is $60,000.
Repayment: you repay over 15 years. Missed repayments are added to your taxable income for that year.
Grace period: for a first HBP withdrawal made between January 1, 2022, and December 31, 2028, the CRA says repayments start in the fifth year after the year of the withdrawal, instead of the second year.

Think of the HBP as a loan to yourself. It’s useful, but money you take out isn’t growing for your retirement until you put it back.

Using both for one East Hill home

The CRA’s FHSA guidance says you can withdraw from your RRSPs under the HBP and make a qualifying FHSA withdrawal for the same home, as long as you meet the conditions for each withdrawal. For a couple who are both first-time buyers, each person can have their own FHSA and their own HBP withdrawal.

A few timing points to watch:

Have a written agreement. For a qualifying FHSA withdrawal, you need a written agreement to buy or build the home, with the purchase or completion date before October 1 of the year after the withdrawal.
Plan to move in. You must occupy, or intend to occupy, the home as your principal residence within one year after buying it.
Allow time. Financial institutions need forms and processing time. Talk to yours as soon as your offer is accepted and your subjects are coming off.

Pairing these with BC’s programs

The federal programs help you build the down payment. BC’s First Time Home Buyers’ Program can reduce or remove the property transfer tax on a qualifying home, which lowers your cash needs at closing. The BC Home Owner Grant can reduce your yearly property tax once you live there. Each program has its own rules and definition of “first-time buyer,” so check them one at a time.

My checklist for buying an older home in East Hill is a good next read. It helps you budget for the repairs an older house might need after closing, so your savings don’t all go into the down payment.

What this looks like in practice

Prices in East Hill vary a lot between an older bungalow, a character home and a house with a suite. I don’t quote market numbers here because they change. Look at current listings on the East Hill homes for sale search, work out a target price with your lender, and then plan your FHSA, HBP and cash savings around it. If you’re new to the area, my Living in East Hill page gives you a feel for the neighbourhood.

FAQ

Can my spouse and I each use an FHSA and the HBP?

Generally, yes, if each of you qualifies as a first-time buyer under each program’s rules. Confirm with your financial institution or accountant.

What if I open an FHSA and don’t end up buying?

The CRA allows FHSA savings to be transferred to an RRSP or RRIF without affecting your RRSP room, subject to conditions. Otherwise, withdrawals are taxable. Check the current CRA rules.

Is the $60,000 HBP limit per person?

Yes, the HBP limit applies to each eligible person, so a couple who both qualify may each withdraw up to the limit.

If you’re saving toward a first home in East Hill and want to talk about timing or what’s on the market, call or text me at (250) 550-6979, or browse East Hill homes for sale.