You have been saving for a down payment on a Toronto home, and someone mentions the First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP). You look up both programs and learn you can use them on the same purchase. That sounds almost too good to be true, but it is allowed.

The tricky part is understanding the limits on each program and how they work together, especially if you are buying with a partner. The numbers can change how much home you can actually afford, not just how much you have in the bank.

Below I break down what each program offers on its own, how they stack for a single buyer and a couple, and what to sort out before you withdraw anything close to your closing date.

What the FHSA and HBP each do on their own

The FHSA lets you contribute up to $8,000 per year, up to a lifetime maximum of $40,000. Contributions are tax deductible, similar to a Registered Retirement Savings Plan (RRSP), and withdrawals for a qualifying first home purchase are tax free, including any investment growth inside the account.

The Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP for a first home purchase, tax free at the time of withdrawal. The catch is that you have to repay that amount back into your RRSP over 15 years, or it gets added to your taxable income each year you miss a repayment.

Both programs exist to help you gather enough cash for a down payment, but they work differently enough that using them together takes a bit of planning. One is a dedicated savings account with tax-free withdrawal. The other is a temporary loan from your retirement savings that you must pay back.

FHSA and Home Buyers’ Plan Toronto 2026: the limits in plain numbers

According to canada.ca, you are allowed to use both the FHSA and the HBP toward the same home purchase, as long as you meet the eligibility rules for each program individually. There is no requirement to choose one or the other.

For a single buyer, that means a maximum combined withdrawal of $100,000: up to $40,000 from the FHSA and up to $60,000 from the HBP. That is a meaningful chunk of a down payment in Toronto, where home prices remain high across most property types.

If you are buying with a partner and you are both first-time buyers, the numbers stack again. A couple can combine two FHSAs and two HBP withdrawals, which means a combined total that can exceed $200,000 toward a single down payment.

To put that in perspective: a couple who each maxed out their FHSA at $40,000 and each withdrew the full $60,000 HBP amount would have $200,000 available before touching other savings. On a Toronto condo or townhouse, that alone could cover a large share of the purchase price. Few buyers hit every maximum, but the two programs are additive rather than exclusive.

Why the down payment size changes your mortgage options

A bigger down payment does more than reduce your mortgage balance. It can also affect which mortgage rules apply to you.

Homes priced above the insured mortgage cap require a larger minimum down payment and do not qualify for mortgage default insurance the same way lower-priced homes do. Stacking your FHSA and HBP funds can help you either stay under that threshold or reduce how much you need to borrow above it.

A larger down payment can also open the door to 30-year amortization in certain cases, which lowers your monthly payment even though you pay more interest over the life of the mortgage. That trade-off is worth discussing with your mortgage professional before you commit to a purchase price.

Timing your withdrawals before closing

Both programs have rules about when you can withdraw funds relative to your closing date, and getting the timing wrong can delay your access to the money right when you need it most.

For the HBP, the withdrawal generally needs to happen before your closing date, and you typically need a signed agreement of purchase and sale in place. For the FHSA, you also need to be a first-time buyer at the time of withdrawal, so opening the account years in advance does not lock you out of eligibility later.

I would recommend talking to your mortgage professional and, ideally, an accountant about sequencing your withdrawals a few months before your target closing date rather than waiting until you are under contract. That gives you room to fix any paperwork issues without holding up your purchase.

Practical steps for stacking your down payment

Here is how I would approach it if I were saving for a first home in Toronto right now:

• Open an FHSA as early as possible, since the $8,000 annual room only starts accumulating once the account exists
• Contribute the maximum $8,000 per year if you can, to reach the $40,000 lifetime limit faster
• Check your RRSP balance against the $60,000 HBP limit and plan withdrawals close to your purchase date
• If buying with a partner, confirm you are both eligible first-time buyers under the program rules
• Talk to a mortgage professional before withdrawing anything, so the timing lines up with your closing date
• Keep track of your HBP repayment schedule once you have bought, since missed payments become taxable income

FHSA and Home Buyers’ Plan: what to confirm before you rely on the numbers

Program rules can change, and eligibility has specifics that matter. You need to be a first-time buyer as defined by the program, the home must qualify, and the funds must go toward the purchase within the required timeframe.

Confirm the current rules on canada.ca or with a mortgage advisor before you build your budget around these amounts. The strategy itself, using both programs on the same home, is exactly what they were designed for. The details are what trip people up when they wait until the last minute.

Final Thoughts

The FHSA and HBP together give first-time buyers in Toronto real leverage on a down payment, especially as a couple. Used properly, they can push your available down payment well past what either program offers on its own.

Open the FHSA early, plan your HBP withdrawal timing carefully, and talk to your mortgage professional before you count on a specific dollar amount. The rules are specific about eligibility and repayment, but the strategy of stacking both programs on the same purchase is one of the most useful tools a first-time buyer has in 2026.