June 29, 20263 min read
For many Canadian homebuyers, this question comes up before they are ready to make an offer. Eligible buyers can use both a qualifying FHSA withdrawal and a Home Buyers' Plan RRSP withdrawal for the same qualifying home, which can materially increase available down-payment funds.
What lenders actually look at
Here is what matters most:
- The FHSA and HBP have separate eligibility, timing and documentation rules.
- FHSA qualifying withdrawals are generally tax free and do not require repayment, while HBP withdrawals must normally be repaid to the RRSP over time.
- Using both can increase the down payment, but it may also reduce the liquid savings you have available after closing.
- Plan withdrawals around the closing date and confirm that each program's conditions are satisfied independently.
A mortgage plan should show not only how much you can withdraw, but how much you should leave invested or in emergency savings.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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