RRSP Home Buyers' Plan — Canada 2025

RRSP Home Buyers' Plan 2025 — Use Your RRSP to Buy a Home

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Withdraw up to $35,000 from your RRSP ($70,000 per couple) tax-free to buy your first home. Understand the rules, repayment schedule, and how to maximize the HBP alongside the FHSA.

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HBP Key Facts

Max Withdrawal
$35,000
Per person
Couple Maximum
$70,000
Both partners combined
Repayment Period
15 years
1/15 per year
Repayment Starts
Year 2
2nd calendar year after purchase
90-Day Rule
Required
Funds must be in RRSP 90+ days
RRSP Growth
Tax-free
While in RRSP before withdrawal
Key difference from FHSA: RRSP HBP withdrawals must be repaid to your RRSP over 15 years. Missing a repayment means that year's required amount is added to your taxable income. The FHSA has no repayment requirement — making it generally the superior vehicle for first-time buyers, though both can be used together.

RRSP HBP eligibility requirements

  • You must be a first-time homebuyer (no principal home ownership in the year or 4 preceding calendar years)
  • You must have a written agreement to buy or build a qualifying home
  • The funds must have been in your RRSP for at least 90 days before withdrawal
  • The home must be your principal place of residence by October 1 of the year after purchase
  • Canadian residents only
  • You can only participate in the HBP once in your lifetime (unless you repay the full amount and start fresh — rare)

The 90-day RRSP rule — why it matters

To withdraw from your RRSP under the HBP, the funds must have been deposited in your RRSP for at least 90 days. This means you cannot contribute to your RRSP and immediately withdraw for a home purchase — you must wait 90 days. Plan ahead: if you want to use the HBP, contribute to your RRSP at least 3 months before your anticipated closing date. However, the deduction from the contribution is still claimed in the year of contribution.

HBP repayment rules

  • Repayments start in the second calendar year after the year you make your first HBP withdrawal
  • Each year you must repay 1/15 of the original withdrawal amount to your RRSP
  • If you don't repay the required amount in a given year, that year's amount is added to your taxable income
  • You can repay more than 1/15 per year to pay down the balance faster
  • Example: $35,000 withdrawal → $2,333.33/year required repayment for 15 years
  • Track your HBP balance on your CRA MyAccount

HBP Repayment Calculator

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Frequently Asked Questions

Can I use the RRSP HBP if I owned a home before?
You qualify as a first-time buyer for the HBP if you (and your spouse/common-law partner) have not owned a home that you lived in as your principal place of residence at any time during the calendar year or in any of the four preceding calendar years. So if you sold your previous home and haven't owned one for 4+ years, you may qualify again. Check your specific situation with CRA or a tax professional.
Should I use the FHSA or RRSP HBP — or both?
Both if possible. The FHSA is generally the superior vehicle: tax-deductible contributions AND tax-free withdrawals with no repayment requirement. However, if you already have RRSP savings, the HBP lets you access up to $35,000/person without paying tax — as long as you repay over 15 years. A common strategy: maximize the FHSA first, then supplement with the RRSP HBP if you need additional funds.
What happens if I miss an RRSP HBP repayment?
If you fail to repay the required minimum in a given year (1/15 of original withdrawal), the unpaid amount is added to your income for that tax year. This means you'll owe income tax on that amount. CRA sends you a Home Buyers' Plan Statement each year showing your outstanding balance. Missing repayments can be costly — especially if you're in a high marginal tax bracket.
Can my partner and I each use the RRSP HBP?
Yes — both partners can each withdraw up to $35,000 from their own RRSP under the HBP for a combined maximum of $70,000. Each partner must independently qualify as a first-time buyer and must have the funds in their own RRSP for at least 90 days. Both partners will have separate repayment obligations of 1/15 per year over 15 years.

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