FHSA vs. RRSP Home Buyers Plan in Alberta
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·Reviewed by a mortgage professional
Short answer
Both can help first-time buyers fund a down payment, but they work differently. FHSA withdrawals can be tax-free when eligible, while RRSP Home Buyers Plan withdrawals must be repaid over time.
The plain-English version
The FHSA is designed specifically for eligible first-home savings. The RRSP Home Buyers Plan lets eligible buyers withdraw from RRSPs under program rules, with required repayment.
For mortgage approval, lenders still need a clear paper trail showing where the funds came from and that you are eligible to use them.
Alberta-specific considerations
- Alberta has no provincial land transfer tax, but buyers still need closing-cost cash beyond the down payment.
- Gifted funds, FHSA, RRSP, and savings can be combined, but documentation matters.
- New-build purchases may involve GST and deposits on a different timeline than resale purchases.
Example scenario
A first-time buyer may use FHSA savings for part of the down payment and RRSP Home Buyers Plan funds for the rest. The lender will usually want statements and proof of withdrawal timing.
Common mistakes to avoid
- Assuming every first-time buyer automatically qualifies for both programs.
- Withdrawing funds too late for the closing timeline.
- Forgetting RRSP Home Buyers Plan repayment obligations.
- Moving funds around without preserving a clear 90-day history.