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My partner and I plan to buy a $600,000 home in two to three years with a 20% down payment. Can we each use $40,000 from our FHSAs and $60,000 from our RRSPs through the Home Buyers’ Plan, even though we would only need $120,000 for the down payment? We would use the additional $80,000 for any necessary renos. Over the next few years, we would continue investing in our RRSPs and invest the tax refunds in our TFSAs, even though we plan to eventually pull the full $120,000 from our RRSPs, instead of keeping that money locked in.
—Ryan
Combining FHSA and RRSP withdrawals to buy a home
A first-time home buyer can mix and match different accounts to fund their home down payment. The recently introduced first home savings account (FHSA) is primarily for an eligible home purchase. Through the Home Buyers’ Plan (HBP), you may also be able to withdraw from a registered retirement savings plan (RRSP) up to certain limits. Tax-free savings accounts (TFSAs) are flexible accounts that can also be used with no requirement to repay what you withdraw…
What is the TFSA contribution limit in 2025?
– moneysense.ca
The tax-free savings account (TFSA) is one of the best ways for Canadians to grow their money. This registered account (meaning that it’s registered with the federal government) offers tax-free growth and tax-free withdrawals—a one-two punch that no other Canadian registered account offers.
Using a TFSA can help you meet your financial goals, whether you’ll need access to your savings soon (think: wedding or buying a car) or far in the future (retirement). A recent EQ Bank survey found that:
Most Canadians (87%) are saving towards short- to mid-term goals, such as vacation or travel (51%), an emergency fund (48%), home renovations or repairs (34%) or a car purchase or repairs (32%).
57% of Canadians use TFSAs to save for short-term and mid-term goals. TFSAs are the most popular product for this purpose after regular chequing accounts (61%). TFSAs are also more popular than registered retirement savings plans (RRSPs) (40%) and high-interest savings accounts (32%).
The vast majority of Canadians (82%) using TFSAs to save said they earn interest on their savings in the account…
