The RRSP Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free to buy or build your first home — repaid over 15 years starting two years after withdrawal. A couple buying together can withdraw $120,000 combined. The HBP is one of the most valuable tools available to Canadian first-time buyers and pairs well with the Tax-Free First Home Savings Account (FHSA).
2026 HBP Key Numbers at a Glance
| Detail | Amount / Rule |
|---|---|
| Maximum withdrawal per person | $60,000 |
| Maximum for couple (both qualifying) | $120,000 |
| Repayment period | 15 years |
| Repayment start | 2nd calendar year after withdrawal |
| Annual minimum repayment | 1/15 of total withdrawn |
| RRSP holding period before withdrawal | 90 days |
| Home must be occupied by | December 31 of the year after withdrawal |
How the Home Buyers’ Plan Works — Step by Step
Step 1: Confirm You Qualify
You qualify if you meet all of the following:
- You are a Canadian resident
- You are a first-time home buyer (no principal residence owned in the preceding four calendar years)
- The home you are buying is in Canada
- The home will be your principal place of residence within one year of buying or building
- You have a written agreement to buy or build (signed purchase contract or construction contract)
Second chance qualifying: If you owned a home more than four years ago but have been renting since, check whether you meet the four-year window rule. Many repeat buyers qualify again.
Disability exception: If you are buying for a related person with a disability, or if you have a disability, different rules may apply — see CRA for details.
Step 2: Ensure Funds Have Been in Your RRSP for 90 Days
Contributions made within 90 days before your HBP withdrawal cannot be used for the withdrawal and will not generate a valid tax deduction for that period. If you plan to maximize your HBP withdrawal, ensure contributions are in place at least 90 days ahead of your closing date.
Example: Closing October 1, 2026. Contributions must be in your RRSP by July 3, 2026 or earlier to qualify.
Step 3: Withdraw From Your RRSP Using Form T1036
Complete CRA Form T1036 — Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP. Give this form to your RRSP issuer (bank, broker). Your issuer will not withhold tax on an HBP withdrawal — you declare it on your tax return and it is not included in income as long as you repay it.
You can make multiple withdrawals in the same calendar year, as long as the total does not exceed $60,000. All withdrawals must relate to the same qualifying home purchase.
Step 4: Buy or Build Your Home
You must occupy the qualifying home as your principal place of residence by December 31 of the year following your HBP withdrawal year.
- Withdrew in 2026 → must be living in the home by December 31, 2027
If you do not occupy the home by the deadline, the full HBP amount becomes taxable income.
Step 5: Repay Over 15 Years
Repayment starts the second calendar year after withdrawal:
| Withdrew in | Repayment starts | Final repayment year |
|---|---|---|
| 2024 | 2026 | 2040 |
| 2025 | 2027 | 2041 |
| 2026 | 2028 | 2042 |
Each year, you must contribute at least 1/15 of your total withdrawal back to an RRSP. You designate these contributions as HBP repayments on Schedule 7 of your T1 tax return.
HBP Repayment — Worked Example
Scenario: You withdraw $45,000 from your RRSP in 2026. Repayment begins in 2028.
| Year | Annual Minimum Repayment | Outstanding Balance |
|---|---|---|
| 2028 | $3,000 | $42,000 |
| 2029 | $3,000 | $39,000 |
| 2030 | $3,000 | $36,000 |
| … | $3,000 | … |
| 2042 | $3,000 | $0 |
If you repay more than the minimum in any year, your outstanding balance decreases and future minimum annual payments drop proportionally.
What if you miss a repayment? The amount you were supposed to repay that year is added to your taxable income — you pay income tax on it. It does not become a debt to CRA, but it reduces the tax-sheltered benefit of the HBP.
HBP vs FHSA — Should You Use Both?
The First Home Savings Account (FHSA) introduced in 2023 is a purpose-built first-home savings vehicle. The HBP and FHSA can be used together on the same home purchase.
| Feature | HBP | FHSA |
|---|---|---|
| Contribution limit | RRSP room (no separate limit) | $8,000/year, $40,000 lifetime |
| Tax deduction on contribution | Yes (RRSP) | Yes (FHSA) |
| Withdrawal tax treatment | Tax-free if repaid | Tax-free (no repayment required) |
| Repayment required | Yes — 15 years | No |
| Annual contribution limit | No (uses RRSP room) | $8,000 |
| Applies to second home? | No (must be first-time buyer) | No |
Strategy: Open and maximize your FHSA first (no repayment required). Then use the HBP for additional funds from your RRSP if needed.
Common HBP Mistakes to Avoid
Withdrawing recently contributed RRSP funds. If you contributed to your RRSP specifically to boost your HBP withdrawal, contributions must sit for 90 days. Violating this means the withdrawal is taxable income — the opposite of what you intended.
Missing the occupancy deadline. You must live in the home by December 31 of the year after withdrawal. If your closing is delayed or the build runs long, confirm you still meet this deadline.
Not designating repayments on your tax return. RRSP contributions made as HBP repayments must be designated on Schedule 7 of your T1 return. If you don’t designate them, CRA treats them as regular RRSP contributions (not HBP repayments) and you still owe the repayment amount.
Forgetting that missed repayments are taxable income. If you can’t repay a given year’s minimum, that amount is added to your income. Set up an automatic annual RRSP contribution to stay on track.
HBP and Spousal RRSPs
If your spouse has a spousal RRSP, you can withdraw from it under HBP if your spouse is the annuitant and they meet the qualifying conditions. Spousal RRSP attributions rules are waived for HBP withdrawals — the attribution rule (which normally applies to withdrawals within 3 years of a spousal contribution) does not apply to HBP.
Related Guides
- RRSP contribution limits and rules
- RRSP vs TFSA — which to prioritize?
- First Home Savings Account (FHSA) guide
- RRSP withdrawal rules and tax implications
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