2026 first-time condo buyers · registered home savings
The important question isn't just how much you can withdraw. It's whether you qualify, whether the money will arrive before your deposit is due, and whether enough remains for closing costs.
Check your funding mix ↓One buyer. Two registered savings tools.
Imagine you are shopping for a $600,000 Toronto resale condo. You have an FHSA, an RRSP and some cash savings. Your mortgage preapproval suggests a minimum down payment may be possible. You are considering a $20,000 offer deposit. How much can actually come from each account—and will it be available in time?
CRA permits eligible buyers to use a qualifying FHSA withdrawal and an RRSP Home Buyers' Plan (HBP) withdrawal for the same home. But you must satisfy each program's independent conditions. Neither contribution room nor the published withdrawal ceiling means those dollars are automatically available to you.
Starting room when you first open an eligible FHSA, with a standard $40,000 lifetime contribution limit. Up to $8,000 of unused room can carry forward subject to CRA rules.
Qualifying withdrawal: tax-free, no repayment. Contributions may offer an income-tax deduction.
Per-person withdrawal ceiling from actual eligible RRSP assets—not a government grant or guaranteed amount in your account.
Eligible withdrawal: generally not taxed at withdrawal but repaid to registered retirement savings over up to 15 years, under the applicable schedule.
An important October 2026 update
CRA extended temporary Home Buyers' Plan repayment relief to first withdrawals from January 1, 2026 through December 31, 2028. The first repayment year is the fifth calendar year after the withdrawal year, with up to 15 years to repay. A buyer whose first eligible HBP withdrawal occurs in 2026 therefore has an initial repayment year of 2031, according to CRA's updated HBP overview.
For a hypothetical $20,000 withdrawal, the simple starting minimum over 15 repayment years is about $1,333 per year (actual CRA statements may reflect earlier repayments and other adjustments). HBP repayments designated as such are not a second RRSP tax deduction. If a required minimum is not repaid, the shortfall is generally included as taxable income.
Check CRA's current HBP overview and 2026 relief ↗Why eligibility is not one yes-or-no question
The CRA checks a qualifying adult and Canadian resident who did not live, during the current or previous four calendar years, in a qualifying home owned by the applicant or their spouse/common-law partner. Home ownership and residence outside Canada can matter, too.
The first-time test generally focuses on whether you lived in a home you owned or co-owned within the relevant period (with a 30-day exception). There must also be a qualifying written purchase agreement, occupancy intention, residency and other withdrawal requirements.
The HBP has its own first-time, residence, written-agreement, timing and form conditions. Ontario and Toronto land transfer tax rebates are different programs with separate eligibility tests. Qualifying for one does not prove entitlement to all.
Before opening, contributing or withdrawing, check the exact CRA tests and your own/spouse's ownership history with a qualified tax adviser. An invalid withdrawal may be taxable.
A useful hypothetical Toronto condo example
This is a hypothetical $600,000 Toronto resale condo with a fixed closing-cost illustration from our separate guide. Enter funds you actually expect to have available, not the CRA program limits. No information is stored or transmitted.
HBP repayment illustration: $1,333 per year over 15 years if this were your eligible first 2026 withdrawal, with first repayment in 2031 under the CRA's stated 2026–2028 temporary relief. Confirm your actual CRA HBP account statement.
This worksheet does not test FHSA opening/withdrawal criteria, HBP eligibility, account liquidity, RRSP contribution-deduction restrictions, lender source-of-funds requirements, mortgage approvals, special taxes or exact legal closing expenses. A deposit paid from already counted savings is not added to the calculation twice.
With $12,000 in truly withdrawable FHSA assets, $20,000 in eligible RRSP HBP money and $15,000 other accessible cash, you might have $47,000 across sources. That exceeds the illustrative $35,000 minimum down payment on a $600,000 eligible insured purchase but is $9,758 short of the separate $56,758 illustrative total closing cash requirement without first-time transfer-tax rebates. Even with full rebate eligibility assumed, it is $1,283 short of the lower $48,283 example. Actual lender and lawyer numbers vary.
From savings plan to signed agreement
FHSA opening, FHSA qualifying withdrawal, RRSP Home Buyers Plan participation and Ontario/Toronto land-tax rebates have distinct eligibility definitions. Ownership of a home you lived in, spouse history and Canadian residency can be material.
FHSA contribution room is not cash on deposit; the HBP $60,000 cap is not the value of your RRSP. Review your CRA participation room and account statements, investment settlement, RRSP restrictions and any locked-in funds.
An accepted offer may require a deposit quickly, while the FHSA RC725 and RRSP HBP T1036 withdrawals can take time. Do not rely on a transfer that has not arrived or an unverified wiring request.
Your actual down payment, both Toronto and Ontario land-transfer taxes, possible refunds, insurance tax, legal fees and adjustments determine the requirement. Do not count the deposit twice; keep a cash buffer.
A qualifying FHSA withdrawal is not repaid. The RRSP Home Buyers Plan is: the CRA currently provides 2026 first withdrawals a 2031 first repayment year, with a 15-year repayment period. Follow your CRA statement and qualified advice.
Pitfalls that cost buyers time and tax savings
If you only open an FHSA in October 2026, you do not automatically receive unused room from 2023, 2024 or 2025. For a newly opened account the initial room is generally $8,000, and growth is not the same as contributions. RRSP-to-FHSA transfers do not create a new FHSA income-tax deduction.
CRA can restrict deductions for some RRSP contributions made during the 89-day period before an HBP withdrawal. Ask a tax adviser and the RRSP issuer before contributing cash merely to withdraw it again to use for the home purchase.
An offer deposit could be due within the contractual period after acceptance. FHSA Form RC725 and RRSP HBP Form T1036 require plan issuer processing. Ask about timelines rather than assuming the funds will be ready the next day. Never wire deposit money to an unverified account.
Official sources and nearby buyer decisions
Information checked October 15, 2026. This is general educational information and hypothetical arithmetic, not financial, lending or tax advice, personal eligibility certification or a substitute for an issuer's plan terms and legal review.
First-time buyer questions
Yes. The Canada Revenue Agency explicitly allows a qualifying FHSA withdrawal and an eligible RRSP Home Buyers Plan (HBP) withdrawal for the same home, if all conditions for each withdrawal are met. They have separate account balances, paperwork and eligibility requirements.
No. In the first calendar year you open your first FHSA, participation room generally starts at $8,000. Up to $8,000 of unused room may carry forward, while the ordinary lifetime contribution cap is $40,000. Verify your actual room with the CRA, including any RRSP-to-FHSA transfers and previous contributions.
The CRA Home Buyers Plan currently allows eligible RRSP withdrawals up to $60,000 per individual. This is a withdrawal ceiling, not money the government gives you or proof you have that amount in a redeemable RRSP.
The CRA Home Buyers Plan overview states temporary repayment relief extends to first withdrawals made during 2026–2028. It defers the start of the 15-year repayment schedule to the fifth year after the withdrawal year. For a first HBP withdrawal in 2026, the first repayment year is 2031. Confirm your CRA repayment statement.
No. A qualifying FHSA withdrawal is generally tax-free and does not have to be repaid. An eligible HBP RRSP withdrawal is also not taxable at withdrawal, but its scheduled repayment rules apply. Unpaid minimum HBP repayment amounts can become taxable income.
No. FHSA account opening looks at the current and prior four calendar years of owner-occupied homes owned by you or your spouse or partner. FHSA qualifying withdrawals have a different test focused on your own ownership, and HBP has its own first-time and timing criteria. Ontario and Toronto first-time land-transfer tax rebates have separate rules, including prior worldwide ownership. Confirm each independently.
Only when the actual funds have been properly withdrawn and are available by the contractual due date. Registered-plan withdrawals require appropriate forms and issuer processing. A deposit can be due much earlier than completion, so arrange a verified source of immediately available cash instead of relying on a last-minute transfer.
Do not assume so. Special CRA rules can restrict deductions on RRSP contributions made during the 89 days before a Home Buyers Plan withdrawal. Review the timing and existing RRSP balance with a tax professional before relying on the deduction.
A more realistic buying conversation
If you're comparing Toronto condos, share your area, actual timing, price range and whether you already have mortgage preapproval. Coordinate your down payment documentation and withdrawal deadlines with the lender, registered account issuer and lawyer.