First-time home buyers in New Brunswick don’t have to choose between the FHSA and the RRSP Home Buyers’ Plan. You can use both for the same home[5]. The FHSA lets you save up to $40,000 over your lifetime and take it out tax-free with nothing to pay back[1][3]. The Home Buyers’ Plan lets you borrow up to $60,000 from your own RRSPs, which you repay over 15 years[6].
When I sit down with first-time buyers in Moncton, Dieppe and Riverview, the savings question comes up almost every time: “Should I be using an FHSA or my RRSP?” It’s a good question, and the honest answer is that for many people it’s both. I’m a REALTOR®, not a financial advisor, so I always send people to their bank or advisor for the plan itself. But here’s the plain-language version of how each program works, straight from the Canada Revenue Agency, so you can walk into that conversation ready.
What is the First Home Savings Account (FHSA)?
The FHSA is a registered account that lets first-time home buyers save for a qualifying first home tax-free, up to set limits[1]. Here’s how it works:
- How much you can put in: $8,000 of participation room in the year you open your first FHSA, up to a lifetime limit of $40,000[1]. Transfers from your RRSPs count toward the same room[1].
- Tax break going in: contributions are generally tax-deductible[1].
- Tax break coming out: a qualifying withdrawal to buy your first home isn’t added to your income, and you don’t pay it back[3].
- No waiting period: there’s no minimum number of days money has to sit in the FHSA before you can use it for a qualifying withdrawal[3].
Who can open one? You need to be a resident of Canada, at least 18 (in provinces where the legal age to sign a contract is 19, that’s the age that applies), no older than 71 on December 31 of the year you open it, and a first-time home buyer. For opening an FHSA, that means you haven’t lived, as your principal residence, in a home you or your spouse or common-law partner owned in the current year or the previous four calendar years[2].
How long can it stay open? Until December 31 of the year of whichever comes first: the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal[4].
What is the RRSP Home Buyers’ Plan (HBP)?
The Home Buyers’ Plan lets you withdraw money from your own RRSPs to buy or build a qualifying home[5]:
- How much: up to $60,000[6].
- Paying it back: you repay it to your RRSPs over a 15-year period[6].
- Repayment relief right now: if your first HBP withdrawal is between January 1, 2026 and December 31, 2028, your repayments start in the fifth year after the year of that withdrawal. For a first withdrawal in 2026, the first repayment year is 2031[5].
- What you need: to be considered a first-time home buyer, and to have a written agreement to buy or build the home[6].
FHSA vs. Home Buyers’ Plan at a glance
| FHSA | Home Buyers’ Plan | |
|---|---|---|
| What it is | A savings account for your first home | A withdrawal from your own RRSPs |
| Limit | $8,000 room in the first year; $40,000 lifetime | Up to $60,000 |
| Pay it back? | No | Yes, over 15 years |
| Tax when you take it out | None on a qualifying withdrawal | No tax withheld on HBP withdrawals of $60,000 or less |
Sources: Canada Revenue Agency[1][3][6].
Can you use both for the same home?
Yes. The Canada Revenue Agency says you can withdraw from your RRSPs under the HBP and make a qualifying withdrawal from your FHSA for the same qualifying home, as long as you meet the conditions for each at the time of each withdrawal[5].
If you’re buying with a partner, each of you holds your own FHSA. The CRA’s own example shows two people each making qualifying withdrawals from their own FHSAs to buy a home together[3]. Each of you has to meet the rules on your own, so it’s worth checking both of your situations with your bank.
Timing tips before you make an offer
- Have the paperwork ready. For a qualifying FHSA withdrawal, you need a written agreement to buy or build a qualifying home, with the purchase or construction completed before October 1 of the year after the withdrawal[3]. The HBP also needs a written agreement[6].
- Ask your bank how long withdrawals take, so the money lines up with your deposit and closing date.
- Remember the costs these programs don’t change. In New Brunswick, you’ll still pay the 1% Real Property Transfer Tax when the deed is registered, and there’s no first-time buyer exemption in the Act[7]. And if your down payment is under 20%, you’ll typically need mortgage loan insurance[8].
If you’re hoping to buy in the next six months, here’s what I suggest: save as much as you can, pay down as much credit card debt as you can, and don’t finance anything new, or plan to, until after you’ve bought your home. Then, before you start shopping, get pre-approved. It’s a process, and taking it one step at a time really does help in the long run.
What this means if you’re buying in Moncton
Your savings plan shapes your budget, and your budget shapes where and what you can buy. Once you know what you’ll have from your FHSA, your RRSPs and your other savings, a lender can give you a pre-approval, and we can look at homes with a real number in mind. My guide for first-time home buyers in Moncton covers down payments, closing costs and the other programs, and my buying page walks through all nine steps. If you need a mortgage broker or another professional, my trusted pros list can help.
Questions people ask me
Can I use my FHSA and the Home Buyers’ Plan for the same home?
Yes. The Canada Revenue Agency says you can withdraw from your RRSPs under the Home Buyers’ Plan and make a qualifying withdrawal from your FHSA for the same qualifying home, as long as you meet the conditions for each at the time of each withdrawal.
How much can I put in an FHSA?
Your FHSA participation room is $8,000 in the year you open your first FHSA, and the lifetime limit is $40,000. Contributions are generally tax-deductible, and transfers from your RRSPs count toward the same yearly room.
Do I have to pay back the Home Buyers’ Plan?
Yes. Home Buyers’ Plan withdrawals are paid back to your RRSPs over a 15-year period. If your first withdrawal is between January 1, 2026 and December 31, 2028, the repayment period starts in the fifth year after the year of that withdrawal. FHSA qualifying withdrawals, on the other hand, don’t have to be paid back.
If my partner and I buy together, can we each use an FHSA?
Each person opens and holds their own FHSA, and the Canada Revenue Agency’s own example shows two people each making qualifying withdrawals from their own FHSAs to buy a home together. Each of you has to meet the conditions on your own.
Sources
Checked in November 2026. Program rules change, so please confirm with the CRA or your financial institution.
- Canada Revenue Agency, “Participating in your FHSAs”. www.canada.ca
- Canada Revenue Agency, “Opening your FHSAs”. www.canada.ca
- Canada Revenue Agency, “Withdrawals and transfers out of your FHSAs”. www.canada.ca
- Canada Revenue Agency, “Closing your FHSAs”. www.canada.ca
- Canada Revenue Agency, “The Home Buyers’ Plan”. www.canada.ca
- Canada Revenue Agency, “How to participate in the Home Buyers’ Plan”. www.canada.ca
- Government of New Brunswick, Real Property Transfer Tax Act, R.S.N.B. c. R-2.1, s. 2(1.03) and s. 6. laws.gnb.ca
- Financial Consumer Agency of Canada, “How much you need for a down payment” (page dated 2025-10-15). www.canada.ca
This post is general information, not financial, tax or legal advice.
Rachel Nevers
Full-time REALTOR® with Real Broker serving Moncton, Dieppe, Riverview and the Greater Moncton Area since 2020. Ten years as a paramedic before that. I answer my phone: 506-651-9969.