1. FHSA — First Home Savings Account
The FHSA is the best of both worlds: tax-deductible going in (like an RRSP), tax-free coming out (like a TFSA), and tax-free growth in between. There's no other account in Canada with this combination.
- Contribution limit: $8,000 per year, $40,000 lifetime
- Tax deduction: Lower your taxable income by your contribution amount
- Withdrawal: Tax-free for a qualifying first home purchase
- Time limit: 15 years to use it (or roll into RRSP)
2. HBP — Home Buyers' Plan
The HBP lets you withdraw up to $60,000 from your RRSP, tax-free, for a down payment on your first home. You repay yourself over 15 years, no interest. This stacks on top of the FHSA — they don't conflict.
- Withdrawal limit: $60,000 (each spouse can withdraw $60K = $120K combined)
- Repayment: 15 years, starting in year 2 after withdrawal, equal annual payments
- Penalty for missing repayment: Missed amount becomes taxable income that year
3. Alberta's $0 Land Transfer Tax
Calgary buyers don't always realize this is a major advantage. Most provinces charge a land transfer tax that can add tens of thousands to closing costs.
| Province | $700K Home Land Transfer Tax |
|---|---|
| Toronto, ON (city + provincial) | ~$22,000 |
| Vancouver, BC | ~$13,000 |
| Quebec (City) | ~$9,500 |
| Calgary, AB | $0 |
You'll pay a small ($55–80) land titles registration fee, but no provincial transfer tax. That's a quiet $13–22K head-start every Calgary buyer already has, before any FHSA or HBP play.
The Stacked Math
Here's a typical Calgary first-time buyer scenario, stacked properly:
- FHSA over 4 years: $32K contributed → ~$5–8K tax refunds + ~$2–4K growth
- HBP withdrawal at purchase: $40K from RRSP (tax-free)
- Skipping land transfer tax (vs Toronto/Vancouver buyers): ~$15K saved
- Total Calgary buyer advantage: $25–35K vs equivalent buyers in Ontario or BC
Want me to map this to your specific numbers?
I'll send you a personalized 1-page breakdown with the exact FHSA + HBP plan that fits your timeline, income, and current savings. Free, takes me 15 minutes.
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Common Questions
Can I use FHSA + HBP together? Yes. They are separate programs with separate accounts. Contributing to both, and withdrawing from both at purchase, is the standard play.
What counts as "first-time buyer"? For FHSA: you (or your spouse) haven't owned a home you lived in this year or any of the previous 4 calendar years. Similar definition for HBP. Even a previous owner can re-qualify after the 4-year gap.
What about the $5,000 first-time home buyer's tax credit? Still active, federal, $5K credit at tax time = ~$1,500 in your pocket. Smaller than the others but easy free money.
Can a couple double up? Yes. Each spouse opens their own FHSA ($80K combined) and uses their own HBP ($120K combined). A couple's stack can exceed $50K of advantage vs Toronto buyers.
Next Step
If you're 6+ months out from buying, the FHSA alone (open it now, get the room) usually pays for the next 3 years of strategy work. If you're 0–6 months out, we should talk about whether to use HBP this year or wait. Either way, free 15-min call below.