The Home Buyers’ Plan (HBP) lets you borrow from your own RRSP to buy or build your first home. The withdrawal isn’t taxed as long as you put the money back over time. For many buyers it is the second-biggest source of down payment after savings, and it works alongside the First Home Savings Account.
How much you can withdraw
You can withdraw up to $60,000 in total under the HBP. The limit is per person, so a couple buying together can each withdraw from their own RRSPs, up to $120,000 combined.
- You can make several withdrawals, but only in the calendar year of your first withdrawal and in January of the following year.
- Each withdrawal needs Form T1036, which you fill out and give to your RRSP issuer.
- Anything above the limit is taxable income, and your issuer withholds tax on it.
Watch the timing of new contributions: RRSP contributions made in the 89 days before you withdraw them under the HBP may not be deductible. If you’re topping up your RRSP to use the plan, do it well ahead of time.
Who qualifies
- First-time home buyer. You didn’t live in a home owned by you or your current spouse or common-law partner in the four calendar years before the withdrawal, or earlier in the year of the withdrawal (the 30 days just before the withdrawal don’t count). If your partner currently owns and lives in a home, you can’t participate.
- A written agreement to buy or build a qualifying home when you withdraw. A mortgage pre-approval is not enough.
- Canadian resident when you withdraw, and until you buy the home.
- You intend to live in the home as your principal residence within one year of buying or building it.
- You must buy or build the home before October 1 of the year after your first withdrawal (extensions exist in some cases).
Different rules apply when the home is for a person with a disability; check the CRA’s HBP pages. You can use the HBP again later if your previous HBP balance is zero on January 1 of the year you withdraw and you meet the other conditions again.
The repayment schedule
You have 15 years to put the money back into your RRSP. Each year there is a minimum: your HBP balance divided by the years left, which is 1/15 of the amount if you’re on schedule.
- Normally, repayments start in the second year after the year of your first withdrawal.
- Temporary relief: for a first withdrawal made from January 1, 2022 to December 31, 2025, the 15-year repayment period starts in the fifth year after the withdrawal. The CRA says this relief has been extended to first withdrawals made from January 1, 2026 to December 31, 2028. A first withdrawal in 2026 means repayments start in 2031.
- A repayment is any RRSP contribution made in the year or in the first 60 days of the next year that you designate as an HBP repayment on Schedule 7 of your tax return.
- If you repay less than the minimum, the shortfall is added to your income for that year and taxed. You can always repay faster than required.
Worked example
Sam and Leila buy their first home in 2026. Each has $60,000 in an RRSP that’s been there for years. In March 2026 they sign the agreement of purchase and sale, and each withdraws $60,000 under the HBP: $120,000 in total.
- Under the extended relief, their 15-year repayment period starts in 2031.
- Each must repay at least $60,000 ÷ 15 = $4,000 a year from 2031 to 2045.
- In 2033 Sam only manages $3,000. The $1,000 shortfall is added to his 2033 income and taxed at his marginal rate.
Combined with a down payment from savings, the $120,000 moves them well past the 20% mark on a $550,000 home, avoiding mortgage insurance. Compare scenarios with the CMHC insurance calculator.
HBP or FHSA? Pros and cons
| Home Buyers’ Plan | FHSA | |
|---|---|---|
| Maximum | $60,000 per person | $40,000 of contributions per person, plus growth |
| Pay it back? | Yes, over 15 years, or it’s taxed | No |
| Source | RRSP savings you already have | New contributions, $8,000 a year |
| Tax deduction | On the original RRSP contribution | On each contribution |
| Speed | Available right away if your RRSP has the money | Takes at least five years to reach the limit |
Pros of the HBP: it unlocks a large amount at once, the deferral means no repayments for several years, and you can use it together with the FHSA for the same home.
Cons: repayments compete with your mortgage payments for years; money withdrawn stops growing tax-sheltered for your retirement until you repay it; and missed repayments are taxed. The FHSA is the better first choice when you have time to build it, because withdrawals never need to be repaid. Use the HBP to top up. Our FHSA guide has the details.
Before you withdraw
- Confirm your RRSP investments can be sold in time, without locked-in terms (GICs) blocking you.
- Include the future repayments in your budget, alongside the mortgage payment from the affordability calculator.
- Keep a copy of your purchase agreement and each T1036.
Sources: CRA, What is the Home Buyers’ Plan; CRA, how to participate; CRA, how to make withdrawals; CRA, how to repay.