If you’re a first-time buyer in Mississauga, Toronto, and the GTA, you know it’s a challenging situation to save for a home. But two powerful government programs — the First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) — are proving they’re not just good ideas on paper. They’re working.

As the top Mississauga Mortgage Broker, I’ve seen firsthand how buyers are using both tools to unlock the door to homeownership sooner than they thought possible.

First Home Savings Account (FHSA)

What it is: A registered account designed to help Canadians save for their first home. Combines the best features of an RRSP and a TFSA.

Key Features:

  • Contribute up to $8,000 per year, to a lifetime maximum of $40,000
  • Contributions are tax-deductible (like an RRSP)
  • Withdrawals to buy a qualifying home are tax-free (like a TFSA)
  • The account must be opened to begin accumulating contribution room
  • Unused contribution room can be carried forward once an account is opened
  • Must be used within 15 years or by age 71 (whichever comes first)

Pros:

  • Huge tax advantages: tax deduction now, tax-free withdrawal later
  • Can be combined with the HBP
  • Parents and grandparents can gift funds for contributions
  • Investment growth within the FHSA is also tax-free

Cons:

  • Only available to first-time buyers (or those who haven’t owned a home in 4 years)
  • You must open the account before you start accumulating the contribution room
  • If not used for a home, it must be transferred to an RRSP or withdrawn (and taxed)

Home Buyers’ Plan (HBP)

What it is: A program that allows you to withdraw money from your RRSP tax-free to buy your first home.

Key Features:

  • Withdraw up to $60,000 per person (or $120,000 for a couple)
  • Funds must be in your RRSP for at least 90 days before withdrawal
  • Funds must be repaid over 15 years
  • Temporary relief: For withdrawals made between 2022 and 2025, repayment starts in year 5, instead of year 2

Pros:

  • Large tax-free withdrawal boost to your down payment
  • If you have the contribution room, you can contribute your downpayment funds for a nice tax refund, and then withdraw those funds 90 days later
  • Can use existing RRSP funds
  • Helps increase purchasing power

Cons:

  • Funds must be in your RRSP for at least 90 days before withdrawal to qualify
  • Must repay over 15 years or face tax consequences on missed repayments
  • Requires long-term planning and discipline to repay

Using Both Together

The best part? You can combine the FHSA and HBP.

Together, a couple could access up to $200,000 in tax-advantaged funds through the FHSA and Home Buyers’ Plan— enough to make a real difference in today’s housing market.

And remember, parents and grandparents can still play a huge role by helping fund the FHSA, giving their kids or grandkids a tax-deductible contribution and a massive head start.

Why Work with a Mortgage Broker in Mississauga?

Navigating the FHSA, HBP, and everything in between takes more than just knowing the rules — it takes strategy. As a highly-rated Mississauga mortgage broker, Joe Purewal plays a key role in helping first-time homebuyers feel confident and prepared throughout the homebuying process. Here’s how:

  1. Explaining Everything Clearly
    Buying your first home can be overwhelming. Joe takes the time to walk buyers through every step — from how much they can afford to what to expect on closing day — using plain language and no jargon.
  2. Securing the Best Mortgage Options
    Joe shops multiple lenders (banks, credit unions, and alternative lenders) to find the best rates and products for each buyer’s unique financial situation — something banks simply can’t do.
  3. Helping with Pre-Approvals and Budgeting
    He ensures buyers are properly pre-approved and understand how their mortgage fits into their larger financial picture, including down payment, monthly payments, closing costs, and future plans.
  4. Accessing First-Time Buyer Programs
    Joe educates clients on the FHSA and the HBP, and all government incentives like the Land Transfer Tax Rebate and First Home Tax Credit.
  5. Avoiding Costly Mistakes
    First-time buyers often don’t know what they don’t know. Joe’s experience helps them avoid common mistakes, like committing to a home before financing is secured or overlooking fine print.

From your first question to your first set of keys, Joe’s got the answers.

Ready to discuss your downpayment strategy? Reach out to Joe Purewal — your trusted Mississauga mortgage broker — and let’s build a smart plan for your first home.