RRSP Home Buyers' Plan 2025: Complete $35,000 Withdrawal Guide
The RRSP Home Buyers' Plan (HBP) lets first-time buyers withdraw up to $35,000 from their RRSP — tax-free at withdrawal — to fund a home purchase. Couples can combine for $70,000. Here is everything you need to know about eligibility, the withdrawal process, and repayment rules.
HBP Key Facts 2025
Maximum withdrawal per person: $35,000
Maximum per couple: $70,000 (each person withdraws from their own RRSP)
Tax on withdrawal: None — it is tax-free at time of withdrawal
Repayment period: 15 years, starting 2 years after the year of withdrawal
Annual repayment: 1/15 of the amount withdrawn
If not repaid: That year's 1/15 is added to your taxable income
90-day rule: Funds must have been in RRSP for at least 90 days before withdrawal
HBP Eligibility Requirements
Must be a first-time home buyer — not owned a principal residence in the 4 preceding calendar years
Must be a Canadian resident when the withdrawal is made
Must have a written agreement to buy or build a qualifying home before October 1 of the year after withdrawal
The home must be your principal place of residence within one year of buying/building
RRSP funds must have been in the account for at least 90 days
The 90-Day Rule: Important Timing Note
You cannot contribute to your RRSP and immediately withdraw it under the HBP. Funds must have been deposited at least 90 days before withdrawal. If you're planning to top up your RRSP before an HBP withdrawal, do it at least 3 months in advance. Funds contributed within 90 days can still be withdrawn, but you cannot deduct those contributions — you lose the tax benefit.
How to Make an HBP Withdrawal
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 financial institution
Your institution will release the funds without withholding tax
You can make multiple withdrawals across multiple RRSPs in the same calendar year — as long as the total doesn't exceed $35,000
Report the HBP withdrawal on your income tax return for the year
HBP Repayment Rules
The repayment schedule begins 2 years after the year you made the withdrawal:
Year of Withdrawal
First Repayment Due
Annual Amount (on $35K)
2023
2025
$2,333
2024
2026
$2,333
2025
2027
$2,333
Repayments are made to your RRSP. On your tax return, you designate contributions as HBP repayments (not regular RRSP contributions — they don't generate a new tax deduction). If you contribute to your RRSP without designating as a repayment, CRA treats it as a regular contribution, and your HBP balance remains, adding income that year.
Common mistake: Contributing to your RRSP after an HBP withdrawal and forgetting to designate it as a repayment. If you don't designate, CRA will automatically include 1/15 of your outstanding HBP balance as income. Use Schedule 7 of your tax return to designate repayments properly.
HBP Repayment Example
You withdraw $35,000 in 2025. Repayments start in 2027:
Year
Annual Repayment
Outstanding HBP Balance
2027
$2,333
$32,667
2028
$2,333
$30,334
2030
$2,333
$25,668
2039
$2,333
$2,333
2040
$2,333
$0 — fully repaid
HBP vs FHSA: Key Difference
The RRSP HBP requires repayment; the FHSA does not. However, the HBP allows access to funds you've already accumulated in your RRSP — potentially far more than the $40,000 FHSA lifetime limit if you've been contributing to your RRSP for years. Using both programs simultaneously for the same purchase is permitted and often optimal.
Strategies to Maximize the HBP
Contribute to RRSP 90+ days before withdrawal — get the tax deduction and then access for HBP
Have your partner do the same — double the HBP access to $70,000
Stack with FHSA — use both for the same purchase; no restriction on combining
Pay off HBP aggressively early — clearing the balance quickly restores your RRSP compounding power
Use your tax refund from RRSP contributions to fund HBP repayments — creates a self-reinforcing loop
Disability or Death: Special HBP Rules
If you become disabled, you may be allowed to use the HBP to purchase a more accessible home even if you've previously owned one. Similarly, special rules apply in the case of the account holder's death. Consult CRA or a tax professional for specifics.
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