If you’re a first-time home buyer in Quebec, two federal programs can dramatically reduce how much you pay in taxes while you save for your down payment: the First Home Savings Account (FHSA) — known in Quebec as the CELIAPP — and the Home Buyers’ Plan (HBP), or RAP in French. Both are legitimate, tax-advantaged tools. Both are designed specifically for people buying their first home. And both can be used at the same time.
The question isn’t which one to pick. The question is: do you understand how each works, which one fits your situation right now, and how to stack them for maximum impact? This guide breaks it down — no jargon, no fluff — so you can walk into your next conversation with your mortgage broker or financial advisor armed with the right strategy.
If you’re still in the early research phase, start with our first-time home buyer guide Montreal before diving into the program specifics here.
The FHSA — launched federally in April 2023 — is the most powerful first-home savings tool Canada has ever introduced. It combines the best features of an RRSP and a TFSA into a single account built exclusively for first-time buyers.
Here’s how it works:
In Quebec, your provincial income tax return also recognizes FHSA contributions as deductible under the same rules as the federal treatment. That means you’re getting a deduction at both levels — federal and provincial — on every dollar you contribute.
To be eligible, you must be a Canadian resident, at least 18 years old, and a first-time home buyer (meaning you haven’t owned a qualifying home in the current year or any of the preceding four calendar years). In Quebec, the home must be your principal residence.
Financial planners across Quebec are consistent on this point: if you’re a first-time buyer and you haven’t opened an FHSA yet, open one now — even if you can only put in $500. Why? Because contribution room accumulates from the day you open the account. You can carry forward up to $8,000 in unused room from one year to the next (but no more than one year’s worth at a time). The earlier you open it, the more room you build.
Example: If you open your FHSA in 2026, contribute $8,000 this year, and can’t contribute in 2027, your 2027 unused room of $8,000 carries forward to 2028 — giving you a $16,000 contribution opportunity that year. But if you never opened the account, that room never existed in the first place.
For younger buyers — those in their mid-20s to early 30s — the FHSA is especially powerful. Five years of maximum contributions ($40,000 total) combined with investment growth inside the account can translate to a significantly larger tax-free pool by purchase time.
The Home Buyers’ Plan has been around since 1992. It allows first-time buyers to withdraw from their existing RRSP — tax-free at the time of withdrawal — to fund a home purchase. The rules were updated in 2024, raising the maximum withdrawal significantly.
Key details:
In Quebec, the HBP withdrawal itself is reported on your federal T1 return and your Quebec TP-1 return the same way. The withdrawal isn’t taxed upfront — but the repayment obligation follows you, and if you fall behind, Quebec Revenu (and the CRA) will both add missed amounts to your taxable income.
The HBP is most powerful for buyers who already have substantial RRSP savings — typically buyers in their mid-30s or older who’ve been contributing to RRSPs for years. If you have $50,000+ sitting in an RRSP and you’re ready to buy, the HBP lets you pull that out penalty-free (at the time) and put it toward your down payment. You’ll repay it over time, but you’re essentially borrowing from your future self interest-free — which in Quebec’s current interest rate environment is a very attractive deal.
The HBP is less useful if your RRSP is small or newly opened. You can’t manufacture RRSP room overnight — and trying to speed-contribute to an RRSP just to use the HBP introduces a 90-day waiting period anyway.
| Feature | FHSA (CELIAPP) | Home Buyers’ Plan (HBP / RAP) |
|---|---|---|
| Maximum amount | $40,000 lifetime | $60,000 per person from RRSP |
| Tax deduction on contributions | Yes (federal + Quebec provincial) | No (RRSP contributions were already deducted) |
| Tax on withdrawal | None (completely tax-free) | None at time of withdrawal |
| Repayment required | No | Yes — over 15 years |
| Requires existing savings in the account | No — start fresh | Yes — must have RRSP savings |
| Works if you’re buying in 2–5 years | Excellent | Good (if you have RRSP room) |
| Works if you’re buying this year | Limited (need prior contributions) | Excellent (use existing RRSP) |
| Investment growth | Tax-free inside the account | Tax-deferred inside RRSP |
| Can be combined with the other program | Yes | Yes |
Here’s what the comparison table doesn’t make obvious: these programs are designed to be used together. There’s no rule against it — in fact, financial planners in Quebec consistently recommend running both simultaneously if your timeline and savings allow.
The math is compelling. If you max out your FHSA over five years ($40,000) and withdraw $60,000 from your RRSP via the HBP, you’ve assembled up to $100,000 in tax-advantaged down payment savings. For a couple, that’s potentially $200,000 — all without paying a dollar of tax on the withdrawals at purchase time.
In the Montreal and West Island market, where detached homes regularly trade above $700,000–$900,000, the ability to bring a larger down payment isn’t just financially smart — it changes what you can afford and what mortgage rates you qualify for. Even crossing the 20% down payment threshold eliminates the CMHC mortgage insurance premium, which in Quebec can save you tens of thousands over the life of the loan. If you’re interested in what properties are available in that market, browse our West Island real estate listings to get a feel for current pricing.
Open your FHSA today. Contribute the maximum $8,000 per year. Also contribute to your RRSP if you have room, with the intention of using the HBP when you’re ready to buy. By the time you purchase, you could have $24,000–$40,000 in your FHSA (tax-free on withdrawal) plus whatever you’ve built in your RRSP. This is the ideal dual-track strategy.
Open an FHSA immediately if you haven’t — even contributing $8,000 this year and next gives you $16,000 in tax-deductible, tax-free savings. Then use the HBP to pull from your RRSP at purchase. The two programs together could represent a substantial portion of your down payment.
Use the HBP. If you also have time to open an FHSA and make a contribution before closing (and you qualify), do it — even a partial contribution in the account is worth something. Talk to your financial advisor about timing relative to your closing date.
If you had to pick just one: younger buyers with time to save should prioritize the FHSA because of the no-repayment advantage and the dual tax benefit. Buyers with significant RRSP savings should lean heavily on the HBP. But the best outcome — and the one most Quebec financial planners recommend — is using both.
Open the FHSA now. Contribute every year you can. And when purchase time comes, combine it with an HBP withdrawal. Between the two, you can access up to $100,000 in tax-advantaged funds per person — giving you a serious down payment advantage in Quebec’s competitive real estate market.
At Elite Real Estate Group, we work with first-time buyers across Montreal, Pointe-Claire, the West Island, and surrounding areas. We understand the local market, the numbers, and how to put buyers in the strongest possible position — from financing strategy to closing day.
If you’re thinking about buying your first home in Quebec — this year or in the next few years — reach out to us. We’ll connect you with the right resources and help you navigate every step of the process.
Contact Elite Real Estate Group today — and let’s build your path to homeownership the right way.