The RRSP Home Buyers' Plan (HBP)

Last reviewed October 30, 2026

The Home Buyers' Plan lets first-time buyers withdraw money from their RRSPs to buy or build a home, without paying tax on the withdrawal, as long as they repay it over time. It's been around for decades, and the limit was raised to $60,000 in 2024.

HBP key facts

Withdrawal limit

$60,000 per person (for withdrawals after April 16, 2024)

Tax on withdrawal

None, if repaid on schedule

Repayment period

15 years

Repayments start

Normally the second year after the withdrawal; for a first withdrawal from 2026 to 2028, the fifth year (see below)

Missed repayment

Added to your taxable income for that year

Use with FHSA?

Yes, for the same home

Source: Canada Revenue Agency, Home Buyers' Plan (checked October 30, 2026). Confirm current rules at canada.ca.

Who qualifies

Generally, you must:

• Be a first-time home buyer: you didn't occupy a home that you or your spouse or common-law partner owned in the four-year period ending 31 days before the withdrawal (there are exceptions, for example after a breakdown of a marriage or common-law partnership, or to buy a more accessible home for a person with a disability).
• Have a written agreement to buy or build a qualifying home.
• Intend to occupy the home as your principal residence within one year after buying or building it.
• Be a resident of Canada.

The 90-day rule

This catches people out every year. RRSP contributions must stay in your RRSP for at least 90 days before you withdraw them under the HBP. Otherwise, the contribution may not be deductible. If you're planning to top up your RRSP to use the HBP, do it well before your expected closing date.

How repayment works

You repay the amount you withdrew in roughly equal instalments over 15 years. For example, a $30,000 withdrawal means $2,000 a year. Each year, the CRA tells you your minimum repayment on your Notice of Assessment. You repay by contributing to your RRSP and designating the contribution as an HBP repayment on your tax return.

• Repay more than the minimum, and your future required payments go down.
• Repay less, and the shortfall is added to your taxable income for that year.

Pros and cons

Pros

• Access to a large amount of savings for your down payment.
• Interest-free: it's your own money, repaid to yourself.
• You already got the tax deduction when you contributed.

Cons

• The money withdrawn stops growing for retirement until it's repaid.
• Repayments are an extra fixed cost on top of your new mortgage.
• Missed repayments become taxable income.

HBP or FHSA first?

For most people, the FHSA comes first, because FHSA withdrawals don't need to be repaid. The HBP is a valuable second source, especially for buyers who've built up RRSP savings through work. Many buyers use both. See stacking the programs.

Making the withdrawal

1. Confirm you meet the first-time buyer test and have (or will soon have) a signed agreement.
2. Check that the funds have been in your RRSP for at least 90 days.
3. Ask your RRSP issuer for the HBP withdrawal form (the CRA's Form T1036). No tax is withheld on qualifying withdrawals.
4. Coordinate timing with your lawyer so the funds arrive before closing.
5. Generally, buy or build the home before October 1 of the year after the withdrawal.

A London example

Hypothetically, a couple buying a $450,000 townhouse in London needs a minimum down payment of $22,500 (5%). They could fund it entirely from their FHSAs. If they wanted to put down more, to reduce their mortgage insurance premium or monthly payment, they could add HBP withdrawals from their RRSPs, then plan for the annual repayments in their budget. The right mix depends on their retirement savings, income and comfort with the repayments, which is worth discussing with a financial advisor.