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The ordinary HBP framework has a shorter grace period. A five-year grace period already applies to first withdrawals made from 2022–2025; extending it to first withdrawals made from 2026–2028 was proposed on April 28, 2026 and should not be treated as effective until enacted and confirmed by CRA.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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Often no. When opening an FHSA, living in a qualifying home owned or jointly owned by your spouse or common-law partner during the current year or previous four calendar years can prevent first-time-buyer status.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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The withdrawal must meet CRA’s qualifying-withdrawal conditions, including first-time-buyer status at the required time, a written agreement for a qualifying home, Canadian residency, acquisition timing and an intention to occupy the home as a principal residence.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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You can contribute, but the 89-day rule may restrict the deduction for RRSP contributions made shortly before an HBP withdrawal. A rushed deposit-and-withdrawal strategy can lose the expected tax benefit.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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No. The current HBP limit is $60,000 per eligible participant, but the money comes from the participant’s RRSP and generally must be repaid over a 15-year period.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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Yes. You may make a qualifying FHSA withdrawal and an eligible Home Buyers’ Plan withdrawal for the same home if you satisfy each program’s conditions at the time of each withdrawal.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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An excess FHSA amount can generally attract a 1% tax per month on the highest excess amount for that month until the excess is eliminated.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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The general FHSA limit is $8,000 of new participation room per year and $40,000 over a lifetime. Unused room can carry forward, but the carryforward is generally capped at $8,000.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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No. FHSA participation room starts only when you open your first FHSA. Waiting does not quietly accumulate room in the background the way many buyers expect.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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No. The home buyers’ amount is a non-refundable income-tax credit claimed on a tax return after an eligible purchase; it is not cash available for the deposit or closing day.
Reviewed by Rajiv Verma, Mortgage Broker · Sep 7, 2026
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