RRSP Home Buyers' Plan 2026 — Withdraw Up to $35,000 Tax-Free

The RRSP Home Buyers' Plan (HBP) is one of Canada's most valuable homeownership programs. It allows first-time buyers to borrow up to $35,000 from their RRSP — without withholding tax or immediate income inclusion — to fund a down payment. The funds must be repaid over 15 years. Combined, two first-time buyers purchasing together can access up to $70,000.

2026 HBP Limit: $35,000 per person. Couples can each withdraw up to $35,000 for a combined total of $70,000.

HBP Repayment Schedule Calculator

Amount Withdrawn Under HBP ($)

Year of First Withdrawal

HBP Amount—

Repayment Period15 years

Repayment Starts—

Repayment Ends—

Annual Minimum Repayment—

If Annual Repayment Missed: Added to Income—

HBP Eligibility Requirements

To use the Home Buyers' Plan, you must meet all of the following conditions:

First-time home buyer — you (and your spouse/common-law partner) must not have owned a qualifying home that you lived in as your principal place of residence at any time in the current year or in any of the four preceding calendar years
Written agreement to buy or build — you must have a signed agreement before October 1 of the year following your withdrawal
Qualifying home — the property must be in Canada and qualify as a principal place of residence
Funds in RRSP for 90 days — money contributed to your RRSP must have been in the plan for at least 90 days before withdrawal
Canadian resident — you must be a resident of Canada when you make the withdrawal and when you acquire the home

90-Day Rule: You cannot contribute money to your RRSP and immediately withdraw it under the HBP. Funds must sit in your RRSP for at least 90 days before they qualify. Plan ahead — if you have funds sitting in a savings account, move them into your RRSP at least 90 days before your expected purchase date.

How to Make an HBP Withdrawal

Complete Form T1036 (Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP)
Give the form to your RRSP issuer (bank, credit union, investment firm)
The issuer processes the withdrawal without withholding tax
You can make multiple withdrawals in a calendar year as long as the total does not exceed $35,000
The amount withdrawn does NOT appear as income on your tax return — only a note that you participated in the HBP

HBP Repayment Rules — 15 Years to Pay Back

The HBP is structured as a loan from your own RRSP. You must repay the full amount over a maximum of 15 years. Repayments start in the second calendar year after the year you first made an HBP withdrawal.

Example: If you withdrew funds in 2026, your repayments must start by December 31, 2028. You have until December 31, 2042 to repay the full amount.

Each year, the CRA shows your required annual repayment on Schedule 7 of your T1 return. If you do not make a repayment in a given year, the required amount is added to your taxable income for that year — effectively being taxed as if you withdrew it from your RRSP.

Repayment vs. Inclusion as Income

Scenario	Tax Impact
You make the full annual repayment to your RRSP	No income inclusion. Full HBP benefit maintained.
You repay more than the required minimum	Excess repayment credited to future years. Reduces future minimum.
You make no repayment in a year	The missed repayment amount is added to your taxable income for that year.
You die or become a non-resident	Remaining balance is included in income in that year. Special rules apply.

Can I Use the HBP Again?

Yes — but only after you have fully repaid any previous HBP balance AND have not owned a principal residence for at least 4 years (meeting the first-time buyer definition again). Many Canadians qualify for a second HBP use after selling a home and renting for 4+ years before buying again.

HBP vs. FHSA — Which Is Better for Your Down Payment?

The FHSA (First Home Savings Account) is a newer program introduced in 2023 that also helps first-time buyers save for a home — but with some important differences. See the detailed FHSA vs HBP comparison.

Feature	HBP	FHSA
Maximum Withdrawal	$35,000/person	$40,000/person
Repayment Required?	Yes — 15 years	No
Contribution Limit	Uses existing RRSP room	$8,000/year, $40,000 lifetime
Tax Deduction on Contribution	When contributed to RRSP	Yes, when contributed to FHSA
Available For	First-time buyers (reusable)	First-time buyers only, once

For most first-time buyers, using both the FHSA and HBP together maximizes the total tax-free down payment amount available.

Strategy: Maximize Both FHSA and HBP

If you have been saving in your RRSP and are now opening an FHSA, consider this approach:

Maximize FHSA contributions annually ($8,000/year) to build up to $40,000 in tax-deductible, tax-free growth
Continue RRSP contributions separately to build additional HBP-eligible funds
When purchasing: withdraw up to $40,000 from FHSA (no repayment required) + up to $35,000 from RRSP HBP
This gives a couple up to $150,000 in combined tax-free down payment funds

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What Qualifies as a "First-Time Home Buyer" for HBP?

The CRA uses a 4-year lookback window. You qualify as a first-time buyer if you have not occupied a home that you or your current spouse/common-law partner owned as a principal place of residence in the current year or in any of the preceding 4 calendar years.

This means if you owned a home 5 or more years ago, you may qualify again. Divorced or separated individuals may also qualify even if their former spouse owned the home, provided they have lived in a rental for the past 4 years.

Mortgage Calculator

Once you have your down payment in place, use our mortgage calculator to estimate your monthly payments and total interest costs across different amortization periods.

Frequently Asked Questions

Can I use the HBP to buy a home for a disabled relative?

Yes. There is a special provision allowing HBP withdrawals to buy a home for a person with a disability (yourself or a related person with a disability), even if you currently own a home.

What happens if I don't buy the house?

If you withdrew funds under the HBP but did not acquire a qualifying home before October 1 of the year following your withdrawal, you must repay the full amount by December 31 of that year — otherwise it is included in your income.

Can I repay more than the minimum?

Yes. You can repay any amount above the minimum in a given year, which reduces your future annual minimums and shortens the repayment period.