Home Buyer's Plan (HBP) RRSP Canada Guide

Withdraw up to $60,000 from your RRSP tax-free for your first home. Here's everything you need to know about the Home Buyer's Plan in 2025.

What Is the Home Buyer's Plan?

The Home Buyer's Plan (HBP) allows first-time home buyers in Canada to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home. The withdrawal is not taxed at the time you take it out — instead, you repay the amount back into your RRSP over a 15-year period starting two years after the year of withdrawal. The HBP limit was increased from $35,000 to $60,000 in the 2024 federal budget.

HBP Key Numbers

Detail	Amount
Maximum withdrawal per person	$60,000
Maximum per couple (both qualifying)	$120,000
RRSP funds must be held for	90 days before withdrawal
Repayment period	15 years
Repayment starts	2 years after withdrawal year
Minimum annual repayment	1/15th of withdrawn amount

Eligibility Requirements

To participate in the HBP, you must meet all of the following:

• You are a first-time home buyer (not owned a principal residence in current year or prior four years)
• You have a written agreement to buy or build a qualifying home
• You intend to occupy the home as your principal place of residence within one year of purchase
• You are a Canadian resident at the time of withdrawal
• The RRSP funds have been in the account for at least 90 days
• You have not previously participated in the HBP — or, if you have, your HBP balance from a previous participation has been fully repaid

The 90-Day Rule — Critical Planning Point

One of the most commonly overlooked rules: RRSP funds must have been in the account for at least 90 days before you withdraw them under the HBP. If you contribute funds and withdraw them within 90 days, the contribution will not be deductible. This means you need to plan your RRSP contributions well in advance of your purchase. If you are closing on a home in May, your funds should have been in the RRSP by early February at the latest.

How to Make Your HBP Withdrawal

The process is straightforward:

• Complete Form T1036 (Home Buyer's Plan — Request to Withdraw Funds from an RRSP)
• Submit the form to your RRSP issuer (bank, investment firm)
• You can make multiple withdrawals in the same calendar year as long as the total does not exceed $60,000
• The RRSP issuer will not withhold tax on qualifying HBP withdrawals
• You will receive a T4RSP slip showing the withdrawal, but it is reported on a special line and not included in income if repayment rules are followed

Understanding the Repayment Schedule

Repayment does not begin immediately. If you withdraw in 2025, repayments are not required until 2027. Over the following 15 years (2027–2041), you must repay 1/15th of the original withdrawal amount each year. For a $60,000 withdrawal, that's $4,000 per year. Repayments are designated RRSP contributions — they restore your RRSP balance but do not generate new tax deductions.

If you miss a repayment in any given year, that missed amount is added to your income and taxed accordingly. You can repay more than the minimum in any year to reduce future obligations.

Combining HBP With the FHSA

Since 2023, you can use both the HBP and the First Home Savings Account (FHSA) for the same home purchase. This is the most powerful combination available to Canadian first-time buyers. A couple can access:

• Up to $80,000 in FHSA withdrawals (tax-free, no repayment required)
• Up to $120,000 in HBP withdrawals (tax-free now, repaid over 15 years)
• Combined total: up to $200,000 from registered accounts

Prioritize maximizing your FHSA before drawing on the HBP, since FHSA withdrawals never need to be repaid.

What Happens If You Don't Buy a Home?

If you do not buy a qualifying home before October 1 of the year after you made your first withdrawal, you must repay all withdrawn amounts to your RRSP by December 31 of that same year. If you don't repay, the full amount is included in your income for that tax year — you'll pay tax on the entire withdrawal. There are no exceptions for changed circumstances.

HBP for People with Disabilities

People who are eligible for the Disability Tax Credit can use the HBP to buy a more accessible home even if they are not a first-time buyer, as long as they have not participated in the HBP within the prior four years. The same rules apply — $60,000 maximum, 90-day holding rule, repayment over 15 years.