Updated March 2025 · 8 min read

RRSP Home Buyers Plan 2025: Everything You Need to Know

2025 Update: The HBP withdrawal limit was increased to $60,000 per person (up from $35,000) in Budget 2024. A couple purchasing together can now withdraw up to $120,000 combined from their RRSPs.

The RRSP Home Buyers Plan (HBP) lets first-time home buyers withdraw up to $60,000 from their RRSP tax-free to fund a home purchase. Unlike a regular RRSP withdrawal, there's no withholding tax — but you must repay the amount over 15 years, or the outstanding balance gets added to your taxable income annually.

HBP Key Rules 2025

Feature	Details
Maximum withdrawal	$60,000 per person
Couple maximum	$120,000 combined
Repayment period	15 years (starting 2nd year after withdrawal)
Annual repayment	Total withdrawal ÷ 15
Penalty for missed repayment	Missed amount added to taxable income
90-day rule	Funds must be in RRSP 90 days before withdrawal
First-time buyer requirement	Yes (no home owned in current or prior 4 years)
Multiple withdrawals	Yes, across multiple RRSPs, total max $60,000

HBP Repayment Calculator

Calculate Your Annual HBP Repayment

Amount withdrawn from RRSP under HBP ($):

HBP Eligibility Requirements

Must be a first-time home buyer (no qualifying home owned in current year or prior 4 calendar years)
Must have a written agreement to buy or build a qualifying home
Must intend to occupy as your principal residence within one year of purchase
Must be a Canadian resident when you make the withdrawal
Funds must have been in the RRSP for at least 90 days before withdrawal

90-Day Rule: RRSP contributions made within 90 days of the withdrawal cannot be used under the HBP. If you make a last-minute RRSP contribution hoping to immediately withdraw it under the HBP, it won't qualify. Plan at least 90 days ahead.

How to Withdraw Under the HBP

Confirm you meet all eligibility requirements
Complete CRA Form T1036 (Home Buyers' Plan Request to Withdraw Funds from an RRSP)
Submit Form T1036 to your RRSP issuer (your bank or broker)
Your RRSP issuer processes the withdrawal with no withholding tax
You can make multiple withdrawals in a calendar year, to a combined max of $60,000

HBP Repayment: How It Works

Repayment starts the second calendar year after the year of your first HBP withdrawal. If you withdrew in 2025, repayment starts in 2027.

Each year's repayment is made as an RRSP contribution designated as an HBP repayment on Schedule 7 of your tax return. The repayment does not generate an RRSP deduction — it simply reduces your outstanding HBP balance.

Example: $60,000 withdrawn in 2025. Annual repayment = $4,000. If you miss a year's repayment, $4,000 is added to your taxable income for that year.

Can You Use the HBP and FHSA Together?

Yes — and this is the most powerful strategy for first-time buyers. Use both your FHSA (up to $40,000 tax-free withdrawal, no repayment) and the HBP (up to $60,000 from RRSP, repaid over 15 years) to maximize your registered savings toward a down payment.

A couple doing this can access up to $200,000: $40,000 each from FHSA + $60,000 each from RRSP HBP.

See our FHSA vs RRSP HBP comparison for full details.

HBP for People with Disabilities

There is an exception to the first-time buyer requirement: Canadians with disabilities (or those buying for a related person with a disability) may use the HBP even if they have previously owned a home, as long as the home is more accessible or better suited to their disability needs.

Strategy Tip: Contribute to your RRSP now to get the tax deduction, wait 90 days, then withdraw under the HBP. The tax refund from your RRSP contribution essentially funds part of your down payment at no cost.

Free Up More Money to Invest — Zero-Fee Banking

Stop paying $200-$360/year in bank fees. KOHO's no-fee account frees up money you can redirect into your RRSP. Use code 45ET55JSYA for a sign-up bonus.

Get KOHO Free — Use Code 45ET55JSYA