What the RRSP Home Buyers' Plan is
The RRSP Home Buyers' Plan (HBP) lets first-time home buyers withdraw up to $60,000 from their RRSP tax-free for a down payment. The withdrawal must be repaid into the RRSP over 15 years, with annual repayments equal to 1/15th of the withdrawal. Unrepaid amounts become taxable income in that year. The HBP has been around since 1992 but the limit increased from $35,000 to $60,000 in 2024.
The $60,000 limit (per person)
Each spouse with their own RRSP can withdraw up to $60,000 under the HBP. A couple can pull $120K combined toward a single first-home purchase. The withdrawal is tax-free at the moment of withdrawal — it's treated as a loan from yourself to yourself.
The 15-year repayment schedule
Repayment starts the second calendar year after the year of withdrawal. Annual repayments are 1/15th of the original amount. On a full $60K withdrawal, annual repayments are $4,000 per year for 15 years. You designate the repayment on your tax return each year. If you don't repay the required amount in a given year, the unrepaid portion becomes taxable income for that year.
HBP vs FHSA: which to use first
For a first-time buyer with both available, use the FHSA first. The FHSA withdrawal is tax-free with no repayment requirement; the HBP withdrawal is tax-free but you must repay over 15 years. Both have the same tax-deductible contribution benefit (RRSP and FHSA contributions are both deductible). Most first-time buyers we work with stack: max FHSA, then layer in HBP for additional down-payment power.
How to use this calculator
Plug in your RRSP balance, the amount you plan to withdraw, and the years until you'll need to start repaying. The calculator returns the down payment amount and a repayment schedule showing annual obligations. Book a 20-minute chat with the FRIVE team if you want help mapping the HBP into a broader down-payment strategy.
Frequently asked questions
What's the maximum HBP withdrawal?
$60,000 per person. The limit was raised from $35,000 in 2024. Both spouses with their own RRSPs can each withdraw $60K, so a couple can pull $120K combined for one purchase.
Do I have to be a first-time buyer to use HBP?
Yes. The federal definition uses a four-year look-back: you and your spouse can't have lived in a home owned by either of you in the current year or any of the four preceding years.
What if I don't repay on schedule?
The unrepaid amount for that year becomes taxable income on your tax return. So if you owe $4,000 of HBP repayment and don't make it, $4,000 is added to your taxable income for that year. The remaining HBP balance still needs to be repaid over the remaining years.
Can I repay more than the minimum each year?
Yes. Designate as much as you want toward HBP repayment on your tax return each year. Over-payments reduce future required payments dollar-for-dollar.
Can I use HBP and FHSA together?
Yes. Both programs stack on the same purchase. Many first- time buyers use both.
Does HBP withdrawal show on my tax return?
Yes. CRA issues a T4RSP showing the withdrawal. You file Form T1036 to claim the HBP designation. The withdrawal is reported but the tax is deferred under the HBP rules.
How long does the RRSP money need to be in there?
90 days. Contributions made within 90 days of withdrawal don't qualify for HBP. The intent is to prevent buyers from depositing cash, immediately withdrawing it for a tax deduction, and using it as a down payment.
Does HBP affect my qualifying for the mortgage?
Indirectly. The HBP withdrawal reduces your RRSP balance, but increases your down payment. Lenders look at the down payment, not the source. Future HBP repayment obligations don't show up as debt for qualifying purposes.
Can I use HBP for a property in another country?
No. HBP applies only to homes in Canada.
What happens if I sell the house before repaying?
The repayment schedule continues regardless of whether you own the house. The HBP is a loan from your RRSP to yourself, not tied to the specific property.
Sources
- Canada Revenue Agency — RRSP Home Buyers' Plan. canada.ca/hbp
- FRIVE journal — First-time home buyers Fraser Valley 2026. first-time-home-buyers-fraser-valley-2026
