Where the down payment comes from
The planner does not ask you to type a down payment you have already decided on. It answers the harder question — can you buy? — from the accounts you actually hold.
The order, and why
- FHSA — tax-free out, no repayment, and it exists for exactly this.
- TFSA — tax-free out, room restored the following January.
- Unregistered savings — no tax on the principal.
- Home Buyers' Plan — untaxed but repayable; see the HBP.
- Taxed RRSP withdrawal — the most expensive dollar in the plan, taxed at your marginal rate in the year you take it.
Each source is priced for what it costs, so $10,000 from an RRSP does not close the same gap as $10,000 from a TFSA.
What the engine warns about
- Not a first-time buyer — the FHSA and the HBP both depend on that status, so both are removed from the sourcing.
- RRSP room lost — a taxed RRSP withdrawal does not restore its room, unlike a TFSA.
- Taxable gains ignored — capital gains on unregistered holdings are not priced when the money is drawn for the purchase, so that source is slightly flattered.
If the sources do not cover the cash to close, the gap is reported as an unfunded shortfall in the answer's own words rather than as a warning.