Home Buyers' Plan for Disability Canada 2026 — RRSP Withdrawal for Accessible Homes

No fee everyday banking

Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

See how it works

The federal Home Buyers' Plan (HBP) allows Canadians to withdraw up to $35,000 from their RRSP tax-free to purchase or build a qualifying home. Normally this requires being a first-time buyer, but there is an important disability exception: if you or a related person with a disability needs a more accessible or functional home, you may use the HBP even if you already own a home — bypassing the first-time buyer requirement entirely.

  HBP Disability Exception 2026: Withdraw up to $35,000 RRSP tax-free | No first-time buyer requirement if the home is more accessible for a person with a disability | The person with disability must have DTC approval | Repayment period: 15 years (or tax inclusion) | Couples can each withdraw $35,000 = $70,000 combined

HBP Repayment Calculator

Amount withdrawn from RRSP ($, max $35,000) Years since withdrawal (repayment starts Year 2)

The Disability Exception — Who Qualifies?

The disability exception applies when the home being purchased will be for the benefit of a person with a disability who:

Has a valid Disability Tax Credit (DTC) certificate
Is the person making the HBP withdrawal, OR is related to the person making the withdrawal (spouse, parent, child, grandparent, sibling, etc.)

The new home must be more accessible or better suited to the needs of the person with a disability than their current home. CRA assesses this requirement — document why the new home is more accessible (e.g., single-level, wider doorways, roll-in shower, proximity to medical care).

Eligibility Requirements

Have a written agreement to buy or build a qualifying home before October 1 of the year following the withdrawal
The home must be in Canada
You must intend to occupy the home as your principal place of residence within one year of buying or building
RRSP funds must have been in the RRSP for at least 90 days before withdrawal
DTC approval must be in effect at time of application

How to Make an HBP Withdrawal

Obtain a signed purchase agreement or construction contract
Complete Form T1036 (Home Buyers' Plan Request to Withdraw Funds from an RRSP)
Submit to your RRSP issuer — they will release funds without withholding tax
Report the withdrawal on Schedule 7 of your T1 tax return
Begin repayments the second calendar year after the withdrawal year

Repayment Rules

HBP withdrawals must be repaid to your RRSP over 15 years. The minimum annual repayment is 1/15th of the amount withdrawn. Repayments must be made by March 1 to count for the prior year. If you miss a repayment, that year's required repayment amount is included in your taxable income — there is no penalty beyond the tax cost.

Combining HBP with Accessibility Renovation Grants

After purchasing, consider stacking the HBP with available grants for accessibility renovations:

Canada Greener Homes Grant and provincial programs for accessible modifications
CMHC's Residential Rehabilitation Assistance Program (RRAP) for disabled persons
Home Accessibility Tax Credit (HATC) — 15% federal credit on up to $20,000 in eligible renovations

HBP for Disability vs. First Home Savings Account (FHSA)

Feature	HBP (Disability)	FHSA
Max amount	$35,000 per person	$40,000 lifetime
First-time buyer required	No (disability exception)	Yes
Repayment required	Yes — 15 years	No
Tax deduction on contribution	RRSP contribution already deducted	Yes — FHSA contributions deductible

🏦 Accessible Banking with Zero Fees

KOHO's simple, no-fee banking is accessible for Canadians living with disabilities. No branch visits required — manage everything from your phone with no monthly fees.

Get KOHO Free — Code BREMO2026

Informational only. HBP rules may change — verify with CRA or a financial advisor. Last updated March 2026.