How does the RRSP Home Buyers' Plan interact with an FHSA?
Quick Answer
Short answer: You can combine both—withdraw up to $35,000 from RRSPs and any amount in your FHSA tax-free.
Detailed Explanation
The new FHSA doesn't affect Home Buyers' Plan limits. Withdraw FHSA funds first (no repayment required), then tap your RRSP up to $35,000. RRSP withdrawals under the HBP must be repaid over 15 years, starting in the second year after purchase, to avoid tax.
This stack can push a couple's combined tax-advantaged down payment well past $100,000.
- FHSA must be opened before your purchase contract date
- RRSP funds must sit 90 days prior to withdrawal
- Missed HBP repayments become taxable income
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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