Buying Your First Home? Don’t Forget to Set These Up!

Buying Your First Home? Don’t Forget to Set These Up!

You’ve found the house, signed the deal, and your Pinterest boards are bursting with design ideas. But before you pick furniture, let’s make sure you’re not leaving thousands of dollars on the table.

If you’re a high-income professional in your 30s or 40s, the First Home Savings Account (FHSA), Registered Retirement Savings Plan (RRSP), and Tax-Free Savings Account (TFSA)  can help you save smart, pay less tax, and make buying your home easier.

1. First Home Savings Account (FHSA) – The New Star Player

Think of the FHSA as a hybrid between an RRSP and a TFSA:

  • Contribute up to $8,000/year when you open an account (lifetime max $40,000)

  • Contributions are tax-deductible (like an RRSP)

  • Withdrawals for your first home are tax-free (like a TFSA)

  • Investment growth inside the account is tax-free

💡 Pro tip: If you don’t use it to buy a home, you can roll it into your RRSP—no tax hit.

📚 More info: CRA FHSA Guide

2. RRSP – The Home Buyers’ Plan (HBP)

The RRSP can play a big role in first-time home purchases:

  • Withdraw up to $60,000 per person under the Home Buyers Plan (HBP) to buy your first home

  • No tax on the withdrawal (if repaid within 15 years)

  • Contributions give you a tax deduction in the year you make them

💡 Pro tip: If your income is high, contribute to your RRSP first to lower your tax bill, then use the HBP to access funds for your down payment.

📚 More info: CRA Home Buyers’ Plan

3. TFSA – Your Flexible Backup

Your TFSA isn’t just for investing—it’s also a powerful tool for home savings:

  • No tax deduction for contributions, but withdrawals are always tax-free

  • Withdraw for your down payment without worrying about paying it back

  • Any withdrawal room is added back the next year, so you can re-save

💡 Pro tip: Use your TFSA for the portion of your down payment you’ll need first—keep it in a high-interest savings or short-term GIC if your timeline is under 2 years.

📚 More info: CRA TFSA Overview

Putting It All Together

Here’s how it could look for a couple buying their first home:

  • Max FHSA each: $8,000/year × 5 = $40,000 (plus tax savings)

  • Tap RRSPs under the HBP for up to $120,000 combined

  • Use TFSAs for flexible, tax-free withdrawals

That’s $200,000 of down payment power—and serious tax savings!

The Bottom Line

If you’re a high-income professional buying your first home, the FHSA, RRSP, and TFSA aren’t just nice-to-haves—they’re your tax-smart down payment combo. Set them up early, and let them work together.

Book a 30-minute, no-pressure chat with an advice-only financial planner HERE to start your home savings conversation. Let’s make sure your home-buying plan is as smart as your career moves.

Written by:

Jim Pan, CFP

Hi everyone, I’m Jim Pan. I run a small boutique advice-only firm, Panorama Financial Planning, in Vancouver. I work with busy, high-income professionals and families in their 30s and 40s, providing ongoing financial planning services. I am a Certified Financial Planner (CFP) and am currently pursuing additional designations and qualifications to better serve my clients and community. My journey in the financial industry began in 2010. As an immigrant child, I saw my parents given the wrong advice by various advisors. Then, early in my career as a sales-focused investment and insurance advisor, I blindly trusted a mentor, leading to unforeseen events that nearly ended my career. This experience, combined with my childhood perspective, allowed me to deeply contemplate the practice I truly wanted to build—one built on trust and unbiased expertise. That path led me to FPAC (Financial Planning Association of Canada) and to opening my own advice-only shop, a decision that resonates with me from head to toe. Outside of work, I’m a proud "girl-dad" who loves to golf, camp, snowboard, and travel. I’m also passionate about giving back, whether that's volunteering with FPAC or sharing financial literacy with youth in the community.

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