Short answer
Yes. CRA permits an eligible buyer to make an FHSA qualifying withdrawal and an HBP withdrawal for the same qualifying home when all conditions for each program are met. The best mix depends on available savings, tax position, repayment capacity and closing timing.
The concern behind the question
The client hears that both programs can be used and treats the combined limits as an automatic down payment. In practice, contributions, room, account access, withdrawal forms, settlement time and the lender’s funds trail must line up before closing.
What the current rule says
- CRA expressly allows HBP and qualifying FHSA withdrawals for the same qualifying home when each program’s conditions are satisfied.
- An FHSA qualifying withdrawal is generally tax-free and does not have the HBP’s 15-year repayment obligation.
- An HBP withdrawal comes from the participant’s RRSP and creates a repayment schedule under the HBP rules.
- Each spouse or partner must qualify and complete their own withdrawals; one person’s unused room or limit does not transfer automatically to the other.
- The mortgage lender may request account statements, withdrawal confirmation and a full trail into the lawyer’s trust account.
A practical Ontario example
Illustration only: Priya has $24,000 in her FHSA and $45,000 available through her RRSP. Her partner has no FHSA and $20,000 in an eligible RRSP. Rather than simply withdrawing everything, they map the deposit, down payment, closing costs, post-closing reserve and later HBP repayments.
Where buyers get caught
- Using the program limits instead of each person’s actual verified room and account balance.
- Counting an FHSA deduction or future refund as cash already available.
- Sending funds to the lawyer without keeping the account trail.
- Leaving withdrawals until the last few business days before closing.
Where the lender decision is separate
This program does not approve the mortgage. An A lender still applies its own income, credit, debt-ratio, down-payment and property rules. When the down payment is below 20%, the lender normally submits the file to a mortgage insurer, and the insurer must also accept it. An alternative or B lender may take a broader view of income or credit, but usually requires more equity and may charge a higher rate and fees. MIC and private financing is normally a short-term, equity-based route with a clearly costed exit—not a first-time-buyer benefit.
Rajiv would compare the available route, total cash needed, monthly payment, conditions and exit plan. Government eligibility and lender approval answer different questions.
Do not let good money create a documentation problem
Keep the full trail for the deposit, down payment and closing money. If there is a large deposit, transfer or gift in the account during the lender’s review period, keep the statements and documents showing where it came from. Do not move the same money through several accounts unless there is a reason and a complete trail. A tax program may allow a withdrawal, but the lender and lawyer still need acceptable proof of funds.
Facts, assumptions and professional roles
The linked government source describes the public program. It does not state an individual lender’s underwriting policy. A lawyer should confirm the purchase contract, title and land-transfer-tax treatment. An accountant or qualified tax professional should confirm personal tax consequences. Rajiv’s role is to connect the verified mortgage file, closing cash and property to lenders whose current policies may fit.
Source checked 2026-09-07: Read the official government source.
What Rajiv would review before you rely on this
- Which definition of “first-time buyer” applies to the exact program?
- Is the home new, resale, substantially renovated or owner-built?
- Will it be your principal residence, and when will you occupy it?
- Is the benefit credited at closing, claimed later, or dependent on another form?
- Does your mortgage file still qualify without counting an expected refund?
Related AskRajiv pathways
Continue through the First-Time Buyer Rules Hub, the Mortgage Knowledge Centre, or the Real Estate Centre. If an offer is already accepted, use the closing-problem pathway before removing a condition or missing a deadline.
Get the first-home strategy checked
A rule can save money and still leave a financing gap if the timing, documents or property do not fit. Book a First-Home Mortgage Strategy Session with Rajiv Verma, Mortgage Broker. Bring the purchase timeline, income documents, available cash, registered-plan statements and any builder paperwork. Rajiv can identify what is confirmed, what is assumed and what must be checked before you commit.