RRSP Home Buyers' Plan 2026 — $60,000 Limit, Repayment & FHSA Comparison

HBP Repayment Calculator 2026

Amount Withdrawn Under HBP ($) Years Since Withdrawal (repayment starts 2 years after withdrawal year)

Annual Required Repayment (1/15th):

What Is the Home Buyers' Plan (HBP)?

The Home Buyers' Plan (HBP) is a federal program that allows first-time home buyers in Canada to withdraw up to $60,000 from their RRSP tax-free to purchase or build a qualifying home. The $60,000 limit per person was increased from $35,000 in Budget 2024 and applies to withdrawals made after April 16, 2024.

Couples where both partners qualify as first-time buyers can each withdraw up to $60,000 from their individual RRSPs, for a combined household total of $120,000. This is significant in major Canadian cities like Toronto and Vancouver where down payments routinely require $100,000+.

HBP Eligibility Requirements 2026

First-time buyer: You (and your spouse/common-law partner if applicable) must not have owned a home that you lived in at any time during the current calendar year or the preceding four calendar years
Written agreement: You must have a written agreement to buy or build a qualifying home before October 1 of the year following the withdrawal
Intend to occupy: The home must be your principal place of residence within one year of buying or building
Canadian resident: You must be a resident of Canada at the time of the withdrawal
90-day rule: The funds must have been in the RRSP for at least 90 days before withdrawal. Contributions made within 90 days of the HBP withdrawal are generally not deductible.

Special exception: Canadians who have previously owned a home but are now disabled or have a disability — or who are buying a home for a related person with a disability — may qualify for the HBP even if they're not strictly "first-time buyers."

The 15-Year Repayment Schedule

HBP withdrawals are not permanently tax-free — they must be repaid to your RRSP over 15 years. Repayment begins in the second calendar year after the year of withdrawal. The minimum annual repayment is 1/15th of the original HBP withdrawal amount.

HBP Withdrawal	Annual Repayment (1/15th)	Total Over 15 Years
$20,000	$1,333	$20,000
$35,000	$2,333	$35,000
$50,000	$3,333	$50,000
$60,000	$4,000	$60,000
$120,000 (couple)	$4,000 each	$120,000

Penalty for non-repayment: If you don't make your required annual HBP repayment, that amount is added to your taxable income for the year. It's not a fine — it's simply income inclusion. However, you lose the RRSP room permanently since repayments don't create new RRSP room; they simply reduce your outstanding HBP balance.

The 90-Day Rule: Plan Ahead

The 90-day rule catches many first-time buyers off guard. Any RRSP contribution made within 90 days of an HBP withdrawal cannot be claimed as an RRSP deduction. The funds can still be withdrawn under HBP, but there's no deduction benefit for those contributions. This means you need to plan RRSP contributions well before you know you'll be buying a home.

Ideal timeline: Contribute to your RRSP at least 90 days before you plan to withdraw. For a spring 2026 home purchase, contributions need to be in by late January 2026 at the latest.

FHSA vs HBP: Which Is Better in 2026?

The First Home Savings Account (FHSA) launched in 2023 and is generally more advantageous than the HBP for most first-time buyers. Here's why:

Feature	HBP (RRSP)	FHSA
Maximum Withdrawal	$60,000/person	$40,000/person
Repayment Required?	Yes — 15 years	No repayment ever
Tax Deduction on Contribution	Yes (RRSP deduction)	Yes (separate deduction)
Withdrawals Tax-Free?	No — tax-deferred only	Yes — completely tax-free
RRSP Room Used?	Yes (your own RRSP room)	No — FHSA has its own room
Can Stack Together?	Yes — combine with FHSA	Yes — combine with HBP

Best strategy in 2026: Max your FHSA ($40,000) AND use the HBP ($60,000) for a combined tax-free withdrawal of $100,000 per person — or $200,000 for a couple. See our detailed FHSA vs HBP comparison.

Who Should Still Use the HBP in 2026?

Despite the FHSA being newer and simpler, the HBP still makes sense for:

Buyers who already have significant RRSP savings and want to access up to $60,000 immediately
Those who opened an FHSA late and haven't accumulated $40,000 yet
Anyone who wants to maximize both programs together for maximum down payment
First-time buyers with a large RRSP from years of contributions who can tolerate 15 years of repayment

Making HBP Repayments Early

You can repay more than the minimum 1/15th each year, which reduces your outstanding balance and future annual repayments. Early repayments also restore your RRSP's investment growth potential sooner. There's no prepayment penalty.

To make an HBP repayment, simply contribute to your RRSP and designate the contribution as an HBP repayment on Schedule 7 of your T1 tax return. If you contribute more than the required repayment, the excess can be claimed as a regular RRSP deduction.

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