The HBP: a loan you make to yourself
The Home Buyers’ Plan lets you withdraw from your RRSP with no tax at withdrawal, to buy a first home. The amount must be repaid to the RRSP over fifteen years, starting in a given year. Any portion not repaid is added to your taxable income for that year.
The FHSA: the RRSP deduction with the TFSA exit
The First Home Savings Account combines two advantages: contributions are deductible from income, and a qualifying withdrawal is not taxed. It has an annual limit, a lifetime limit, and a maximum lifespan, after which funds must be used or transferred.
Combining the two
In many situations, the HBP and FHSA can both be used for the same purchase. Eligibility conditions are not identical, notably on the definition of “first-time buyer” and on how long funds must be held. It is the first point an authorized person verifies.
Tax credits: afterwards, not during
A federal and a Quebec credit exist for buying a first home. They are claimed on the tax return for the year following the purchase. They reduce tax payable; they do not help you assemble the down payment.
Municipal programs
Several Quebec cities offer their own support: an interest-free loan, a partial refund of transfer duties, or down-payment assistance. Conditions generally include income and purchase-price ceilings, and change from year to year. Check with your city.
What no program does
None of these tools increases your borrowing capacity or replaces qualification with a lender. They act on the down payment and on tax, not on the amount an institution will agree to lend you.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.