Home Buyers' Plan RRSP 2025 — $35,000 Withdrawal Guide

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The Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $35,000 from their RRSP tax-free for a qualifying home purchase. Couples can combine their withdrawals for up to $70,000 total. The withdrawn amount must be repaid over 15 years, or it becomes taxable income.

HBP Repayment Schedule Calculator

HBP Withdrawal Amount ($, max $35,000) Year of Withdrawal

HBP Eligibility Requirements

You must be a first-time home buyer — meaning you have not owned a home that you lived in as your principal residence in the preceding 4 calendar years
You must have a written agreement to buy or build a qualifying home before October 1 of the year after the withdrawal
The home must be in Canada
The funds must have been in your RRSP for at least 90 days before withdrawal
You must intend to occupy the home as your principal residence within one year of purchase or completion

  90-day rule: You cannot contribute to your RRSP and immediately withdraw under the HBP. Contributions must sit in the RRSP for at least 90 days. Plan ahead — make contributions at least 3 months before your expected purchase date.

The $35,000 Limit

As of 2019, the HBP limit was increased from $25,000 to $35,000 per person. For couples, both can access the HBP simultaneously, allowing up to $70,000 combined to be used as a down payment. Both must qualify as first-time buyers in their own right.

HBP Repayment Rules

Repayments begin 2 years after the year of withdrawal and must be completed over 15 years. Each year, you make a contribution to your own RRSP and designate it as an HBP repayment on Schedule 7 of your tax return. Important rules:

You can repay more than the minimum in any year
If you repay less than the minimum, the shortfall is included in your income for that year (taxable)
You cannot use contributions to a spousal RRSP as repayment
If you emigrate from Canada, the entire outstanding balance becomes income in the year you leave

HBP vs. FHSA for First-Time Buyers

Since 2023, the First Home Savings Account (FHSA) offers an alternative or complementary approach. Consider combining both:

Feature	HBP (RRSP)	FHSA
Max withdrawal/contribution	$35,000	$40,000 lifetime ($8K/year)
Repayment required?	Yes, over 15 years	No
Tax deduction on contribution	Yes (RRSP)	Yes
Withdrawal taxable?	No (if repaid)	No
RRSP room required	Yes	No

Disability Exception

If you have a disability and are buying a home that is more accessible, or you are buying a home for a related person with a disability, you may qualify for the HBP even if you've owned a home previously. Consult the CRA for the disability-related exception criteria.

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