Tax season is here, and your refund could do more than just fund a vacation or new gadget. What if this year’s refund helped bring you closer to your first home?

If homeownership is on your vision board, there are two powerful savings tools designed specifically for first-time buyers: the Home Buyers’ Plan (HBP) and the First Home Savings Account (FHSA).

Let’s explore how they work—and how your tax refund could kickstart your journey.

🔑 The Home Buyers’ Plan (HBP)

The HBP allows eligible first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP)—tax-free—to put toward a down payment. Buying with a partner? You may be able to combine your withdrawals for a total of up to $70,000 (subject to eligibility and RRSP balances).

Key features:

• Funds must be repaid to your RRSP over 15 years
• You won’t be taxed on the withdrawal as long as repayment conditions are met
• Gives you access to savings you’ve already built

The HBP can be a valuable tool for those who have been steadily contributing to an RRSP and are ready to take the next step.

🏦 The First Home Savings Account (FHSA)

The FHSA is a relatively new account introduced to help Canadians save for their first home. It blends the best features of an RRSP and a TFSA—contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Key FHSA highlights:

• Contribute up to $8,000 annually
• Lifetime contribution limit of $40,000
• Funds can be invested to potentially grow your savings over time
• Contributions reduce your taxable income, which may increase your refund next year

Your tax refund this year could be used to fund your FHSA and help you take advantage of these benefits.

🚀 Combine the HBP + FHSA to Build Your Down Payment Strategy

Here’s a strategy some Canadians explore: use your tax refund to contribute to your RRSP or FHSA—and then leverage those accounts when you’re ready to buy.

The combined use of HBP and FHSA can offer:

• Access to a larger down payment
• Tax-efficient savings growth
• Potentially increased tax refunds in the future (if contributions are deductible)

Before implementing this strategy, it’s a good idea to review your plan with a licensed financial professional, as eligibility requirements and account rules apply.

🛤️ Your Path Toward Homeownership

Whether you’re just getting started or already saving toward a down payment, tools like the HBP and FHSA can support your goals. Your tax refund might feel like extra cash—but it could also be the foundation for one of life’s biggest milestones.

👋 Ready to Learn More?

At Arlene Financial, we help individuals explore savings strategies tailored to their goals—including those working toward buying their first home.

📅 Book a complimentary consultation to talk through your options.

Disclaimers

World Financial Group (WFG) is a financial services marketing company whose affiliates offer a broad array of financial products and services. World Financial Group Insurance Agency of Canada Inc. (WFGIA) offers life insurance and segregated funds. WFG Securities Inc. offers mutual funds.
WFG, WFGIA and WFGS are affiliated companies.
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This material is intended for educational purposes only. It should not be considered tax, legal, or mortgage advice. Please consult your own qualified financial, legal, or mortgage professional for advice specific to your situation.