Mortgage Blog

Smart RRSP Strategies for First-Time Canadian Homebuyers | February 2026

February 16, 2026 | Posted by: Erin Finlayson

Love Your Future Home: Smart RRSP Moves for First-Time Buyers This February

Tax time and RRSP season might not sound romantic, but if homeownership is on your wish list this year, they can actually be your best financial match. February is a perfect time to make RRSP contributions that not only lower your 2025 taxable income but also bring you closer to your dream home through the Home Buyers’ Plan (HBP) and the First Home Savings Account (FHSA).

Here’s how to make this RRSP season work in your favour if you’re planning to buy your first home in 2026.

1. Double-Dip on Benefits: RRSP Contributions + Home Buyers’ Plan

If you’re a first-time buyer, contributing to your RRSP before the February 29, 2026, deadline does double duty:

• It reduces your taxable income for 2025

• It builds a nest egg you can withdraw (tax-free) toward your down payment through the Home Buyers’ Plan (HBP)

Quick facts:

• You can withdraw up to $60,000 tax-free from your RRSP to buy your first home

• Contributions made in the first 60 days of 2026 can count toward your 2025 tax return

Pro tip: Even if you’re not quite ready to buy, contributing now strengthens your position for later and could mean a nice tax refund to boost your savings.

2. Pair RRSPs with the FHSA for a Bigger Boost

The First Home Savings Account (FHSA) continues to be one of Canada’s strongest tools for new buyers. When used alongside your RRSP, it can supercharge your savings potential.

Why it’s a winning combo:

• FHSA contributions lower your taxable income, just like RRSPs

• FHSA withdrawals for a home purchase are tax-free

• You can contribute up to $8,000 per year, to a maximum of $40,000

Using both programs helps you save faster and keep more of your hard-earned money when you’re ready to buy.

3. Turn Your Tax Refund into Home Savings

That RRSP contribution you made? It might mean a tax refund this spring — and while it’s tempting to splurge, consider putting it toward your home goal.

Smart uses for your refund:

• Add it to your down payment fund

• Pay down debt to improve your mortgage ratios

• Cover legal or closing costs

• Build a cushion for unexpected home expenses

Even a few hundred dollars redirected now can move you closer to homeownership faster than you think.

4. Get Your Paperwork Ready for Pre-Approval Season

Spring is prime time for mortgage pre-approvals, and lenders will want to see that you’re organized. Getting your documents ready in February helps you move quickly when you find the right home.

What to have ready:

• Recent T4s

• Current pay stubs

• Employment letter

• Statements for savings or RRSP accounts

Being prepared now means fewer delays later — and positions you to act confidently when rates or listings shift.

Key Takeaways

• RRSP contributions before Feb. 29, 2026, can reduce your taxes and grow your down payment

• Combining RRSP and FHSA savings gives you a major advantage

• Using your tax refund wisely can strengthen your mortgage application

• Getting organized early makes pre-approval easier this spring

• A few small February moves can set you up for a successful year in real estate

Final Thoughts

While February is known for love and romance, it’s also a great time to show your financial goals some affection. Strategic RRSP and FHSA planning today can bring your dream of homeownership within reach by the end of 2026.

If you’d like to explore how these programs fit your personal plan, I’d be happy to help you create a mortgage strategy that makes sense for your goals this year.

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