If you’re saving for your first home in Calgary, two accounts can cut your taxes: the RRSP (Registered Retirement Savings Plan) and the FHSA (First Home Savings Account). Both give you a tax deduction now. The difference is what happens when you take the money out.
The short answer
For most first-time buyers who qualify, fill the FHSA first. Contributions are deductible like an RRSP, and withdrawals for a qualifying first home are completely tax-free and never have to be paid back. After that, use your RRSP. You can also borrow from it for a home through the Home Buyers’ Plan.
FHSA at a glance
- Annual limit: $8,000, with a lifetime limit of $40,000.
- Carry-forward: up to $8,000 of unused room can carry into the next year.
- Deadline: contributions must be made by December 31 to count for that year. There is no 60-day grace period.
- Withdrawals: tax-free for a qualifying first home purchase.
RRSP at a glance
- Limit: 18% of last year’s earned income, up to the annual maximum, plus any unused room. Your room is shown on your Notice of Assessment.
- Deadline for the 2026 tax year: March 1, 2027.
- Home Buyers’ Plan: first-time buyers can withdraw up to $60,000 tax-free for a home, but it must be repaid to the RRSP over time.
- Withdrawals for other reasons are taxable.
Can I use both for the same home?
Yes. Under current rules you can use your FHSA and the RRSP Home Buyers’ Plan for the same qualifying home. That gives couples a lot of tax-free buying power.
A simple Calgary example
Priya works in Calgary and plans to buy a condo in 2028. She contributes $8,000 to her FHSA before December 31 and claims the deduction on her 2026 return. In February 2027 she puts her tax refund into her RRSP before the March 1 deadline. When she buys, she withdraws her FHSA tax-free and uses the Home Buyers’ Plan for the rest of her down payment.
When the RRSP might come first
- You don’t qualify as a first-time home buyer.
- Your employer matches RRSP contributions. Take the free money.
- You’re in a high tax bracket this year and have plenty of unused RRSP room.
Get personal advice before March 1
The best mix depends on your income, your partner’s plans and when you expect to buy. Garg Accounting can work out your refund under each option before you contribute. Book an appointment or call (368) 995-6000.
This article is general information, not personal tax advice. Contribution limits and rules can change; confirm your room on CRA My Account.
