RRSP Home Buyers' Plan 2025: Withdraw Up to $35,000 Tax-Free

Home Buyers' Plan — Key Facts 2025

Feature	Details
Maximum withdrawal (per person)	$35,000
Maximum withdrawal (couple)	$70,000 ($35,000 each)
Repayment period	15 years
When repayment starts	2 years after the year of withdrawal
Minimum annual repayment	1/15 of the amount withdrawn
First-time buyer requirement	Must not have owned a home you lived in during the current year or the prior 4 years
RRSP funds must be on deposit for	At least 90 days before withdrawal
Deadline to buy/build	Before October 1 of the year following withdrawal

HBP Repayment Calculator

Estimate your annual HBP repayment based on how much you withdraw.

Amount withdrawn from RRSP under HBP ($)

Annual repayment required:$0

Monthly equivalent (optional):$0

Total to repay over 15 years:$0

*Repayment starts 2 years after the year you made the withdrawal. If you don't repay the minimum each year, the missed amount is added to your taxable income for that year.

Who Qualifies for the HBP?

To use the Home Buyers' Plan you must:

Be a Canadian resident
Be a first-time home buyer — meaning you and your spouse/partner have not owned and lived in a home during the current calendar year or any of the preceding 4 years
Have a written agreement to buy or build a qualifying home
Intend to occupy the home as your principal place of residence within one year of buying or building
Have RRSP funds that have been on deposit for at least 90 days

Exception for people with disabilities: If you or a related person with a disability is buying the home, the first-time buyer requirement may be waived. The home must be more suitable for the person with the disability. Consult the CRA for details.

How the HBP Works Step by Step

Step 1: Contribute to your RRSP (at least 90 days before withdrawing)

Funds must be in your RRSP for at least 90 days before you withdraw them under the HBP. If you contribute and withdraw within 90 days, the contribution is not deductible. This is the "90-day rule."

Step 2: Complete Form T1036

When you're ready to withdraw, complete Form T1036 (Home Buyers' Plan — Request to Withdraw Funds from an RRSP) and submit it to your financial institution before or at the time of withdrawal. Your institution will not withhold tax on the withdrawal.

Step 3: Use the funds for your home purchase

Use the withdrawal for your down payment or home purchase costs. You must buy or build your qualifying home before October 1 of the year following your withdrawal year.

Step 4: Repay over 15 years

Starting 2 years after your withdrawal year, contribute 1/15 of the withdrawn amount back to your RRSP each year. If you miss a payment, the missed amount is added to your taxable income for that year.

Example: You withdraw $35,000 in 2025. Repayment starts in 2027. Annual minimum: $35,000 ÷ 15 = $2,333.33/year. If you don't make this contribution in 2027, $2,333.33 is added to your 2027 taxable income.

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HBP + First Home Savings Account (FHSA)

Since 2023, first-time buyers can combine the HBP with the First Home Savings Account (FHSA) to maximize their down payment savings. Here's how they compare and work together:

Feature	HBP (RRSP)	FHSA
Contribution limit	RRSP limit ($31,560 in 2025)	$8,000/year, $40,000 lifetime
Tax deduction on contribution	Yes (RRSP deduction)	Yes
Tax on withdrawal for home	No (must repay over 15 years)	No (no repayment required)
Repayment required	Yes — over 15 years	No
Can be combined	Yes — use both for the same purchase	Yes

A first-time buyer who maximizes both could have: $35,000 (HBP) + $40,000 (FHSA) = $75,000 for a down payment (or $150,000 for a couple).

Frequently Asked Questions

Can I use the HBP a second time?

Yes, but only after you've fully repaid your previous HBP withdrawal and meet the first-time buyer definition again (haven't owned and lived in a home in the current year or the prior 4 years). This typically applies to people who sold their home, rented for several years, and are buying again.

What if I don't buy a home after withdrawing?

If you withdrew funds under the HBP but don't buy or build a qualifying home by the October 1 deadline, you must repay the full amount to your RRSP by December 31 of that year. If you don't, the entire withdrawn amount is added to your taxable income for that year. This is a significant tax hit — only withdraw when you're certain about the purchase.

Does the HBP affect my RRSP room?

Withdrawing under the HBP does not permanently reduce your RRSP contribution room. You're essentially borrowing from yourself. As you repay the HBP over 15 years, your RRSP room is not restored — you're contributing to the same RRSP balance. The repayment is tracked separately by the CRA and does not count as a new RRSP deduction.

Can a spouse or common-law partner each withdraw $35,000?

Yes. Each person can withdraw up to $35,000 from their own RRSP, for a combined maximum of $70,000 per couple. Both partners must meet the first-time buyer definition independently, and each must complete their own Form T1036. The repayment obligation applies separately to each person based on their own withdrawal amount.