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I am saving for a deposit on a house – is an RRSP or TFSA better?



Our response:

A Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) are both options when saving for a down payment on a house. Here’s how they work:

  1. TFSA You can use a TFSA to save for any goal. You make contributions with after-tax dollars (your contributions are not deductible), and withdrawals are tax free.
  2. RRSP RRSPs are generally used to save for retirement. You make contributions with pre-tax dollars (your contributions are deductible). If you are withdrawing money to make a down payment on your first home, you may be able to use the Home Buyers’ Plan (HBP), which allows you to withdraw up to $25,000 – but you must pay this money back within 15 years or the withdrawals will be added to your income.

Speak to a financial representative to discuss your options to save for a down payment. Learn about saving for a down payment and government help for first-time home buyers on

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