Saving for a first home
Canada gives first-time buyers three tax-advantaged tools. Used together, they can meaningfully shrink the years it takes to reach a down payment.
Start with the FHSA
The FHSA is usually the first stop: $8,000/year (up to $40,000) that's both deductible and tax-free for a first home. The deduction alone can add hundreds or thousands a year to your savings via your tax refund.
Keep reading: FHSA growth calculator · Mortgage payment calculator. For the official rules, see CRA — Home Buyers' Plan.
Add the RRSP Home Buyers' Plan
The Home Buyers' Plan (HBP) lets you withdraw from your RRSP for a first home and repay it over time. You can use the HBP and the FHSA on the same purchase — stacking two pools of tax-advantaged money.
Use the TFSA for flexibility
A TFSA rounds things out for money you want to keep fully liquid, with no repayment and no first-home restrictions. Keep near-term down-payment cash in safe holdings — this isn't money to gamble on volatile investments.
Frequently asked
How much down payment do I need?
In Canada the minimum is 5% on the first $500,000 of the price, with more required above that. A larger down payment lowers or removes mortgage default insurance.
Sources
General information for Canadian readers, not individualized financial, tax or investment advice. Figures reflect the date reviewed; confirm current limits and rules with the CRA or a qualified professional before acting.