HBP Repayment Basics
The Home Buyers’ Plan allows you to withdraw up to $60,000 from your RRSP to buy your first home. You must repay this amount over 15 years.
| Feature | 2026 Rules |
|---|
| Maximum withdrawal | $60,000 |
| Repayment period | 15 years |
| Annual repayment | At least 1/15th |
| Repayment starts | 2nd year after withdrawal year |
| No deduction | Repayments are not tax-deductible |
Repayment Timeline
When Repayments Start
| Withdrawal Year | Repayments Begin | First Payment Due |
|---|
| 2024 | 2026 (for 2025 tax year) | March 1, 2026 |
| 2025 | 2027 (for 2026 tax year) | March 3, 2027 |
| 2026 | 2028 (for 2027 tax year) | March 1, 2028 |
You have a 2-year grace period before repayments begin.
15-Year Repayment Schedule
For a $60,000 withdrawal:
| Year | Required Payment | Remaining Balance |
|---|
| 1 | $4,000 | $56,000 |
| 2 | $4,000 | $52,000 |
| 3 | $4,000 | $48,000 |
| 4 | $4,000 | $44,000 |
| 5 | $4,000 | $40,000 |
| … | … | … |
| 15 | $4,000 | $0 |
How to Make HBP Repayments
Designating Your Payment
- Make an RRSP contribution as normal
- Complete Schedule 7 with your tax return
- Designate the contribution as HBP repayment
- Do not claim a deduction for the repayment portion
Example Tax Return Entry
| RRSP Activity | Amount | Deductible? |
|---|
| Total RRSP contribution | $10,000 | — |
| Minus: HBP repayment | $4,000 | No |
| Deductible contribution | $6,000 | Yes |
Deadline
| Tax Year | Contribution Deadline | Repayment Deadline |
|---|
| 2025 | March 1, 2026 | March 1, 2026 |
| 2026 | March 3, 2027 | March 3, 2027 |
Repayments follow the same deadline as RRSP contributions — the first 60 days of the following year.
What Happens If You Miss a Payment
If you don’t designate enough as an HBP repayment, the shortfall is added to your income:
Example of Missed Payment
| Situation | Amount |
|---|
| Required repayment | $4,000 |
| Amount designated | $1,500 |
| Shortfall | $2,500 |
| Added to taxable income | $2,500 |
Tax Impact of Non-Repayment
| Taxable Income | Marginal Rate | Tax on $2,500 Shortfall |
|---|
| $55,000 | ~30% | ~$750 |
| $100,000 | ~43% | ~$1,075 |
| $150,000 | ~48% | ~$1,200 |
The money isn’t “repaid” to the CRA — instead, you lose the tax-sheltered status of that amount.
Impact on Future Minimum Payments
Extra payments reduce your balance and future minimums:
| Scenario | Year 1 Payment | Remaining | Year 2 Minimum |
|---|
| Minimum only | $4,000 | $56,000 | $4,000 |
| Pay extra | $10,000 | $50,000 | $3,571 |
If You Miss a Payment
Missed amounts are removed from your balance (as taxable income), reducing future minimums:
| Scenario | Year 1 Action | New Balance | Year 2 Minimum |
|---|
| Full payment | $4,000 repaid | $56,000 | $4,000 |
| Missed entirely | $0 repaid | $56,000 | $4,000 |
Note: Missing doesn’t change your balance for minimum calculation purposes — CRA still calculates on original schedule.
Special Situations
Selling Your Home
| Situation | HBP Impact |
|---|
| Sell home | Keep repaying as normal |
| No acceleration | Repayment schedule unchanged |
| Move to rental | Keep repaying |
Selling your home does not affect your HBP repayment schedule.
Buying Again
| Situation | Rules |
|---|
| HBP balance outstanding | Can use HBP again after 4 years as non-owner |
| Fully repaid | Can use HBP again if qualified |
| Partial balance | Can use HBP if meet all conditions |
Marriage/Separation
| Situation | Impact |
|---|
| Marriage | Each spouse can use HBP ($120,000 combined) |
| Separation | Each continues their own repayments |
| Spousal RRSP | Repayments go to spousal RRSP owner’s account |
Death
| Situation | Outcome |
|---|
| Die before repayment complete | Outstanding balance added to final return income |
| Exception | Balance can transfer if qualifying beneficiary |
HBP Repayment Strategies
| Strategy | Benefit |
|---|
| Pay extra in high-income years | No deduction anyway |
| Reduces future minimums | More flexibility later |
| Faster return to RRSP | Resumes sheltered growth |
Prioritize vs Other Goals
| Comparison | Recommendation |
|---|
| HBP vs high-interest debt | Pay debt first |
| HBP vs TFSA | Consider TFSA first (tax-free growth) |
| HBP vs RRSP (deductible) | Deductible RRSP has immediate tax benefit |
| HBP vs mortgage prepayment | Depends on mortgage rate vs investment return |
Strategic Non-Repayment
In some cases, intentionally not repaying may make sense:
| Situation | Consideration |
|---|
| Very low income year | Shortfall taxed at lower rate |
| Moving abroad | Different tax situation |
| Terminal illness | Immediate cash needs |
This is an advanced strategy — consult a tax professional.
Checking Your HBP Balance
CRA My Account
- Log in to CRA My Account
- Go to Tax returns > RRSP and TFSA
- View HBP section
- Shows: Original withdrawal, repayments made, balance owing
Notice of Assessment
Your annual Notice of Assessment shows:
- HBP balance
- Required repayment for next year
- Repayments made
Schedule 7
When filing taxes, Schedule 7 shows:
- RRSP contribution room
- HBP repayment calculation
- Designation of repayment amount
Common HBP Repayment Mistakes
| Mistake | Consequence |
|---|
| Forgetting to designate | Contribution deducted, HBP not repaid = double issue |
| Missing deadline | Shortfall added to income |
| Claiming deduction | Can’t deduct HBP repayments |
| Not checking balance | May lose track of minimum |
| Confusing with LLP | Different programs, different repayments |
HBP vs LLP Repayment Comparison
| Feature | HBP | LLP |
|---|
| Purpose | Home purchase | Education |
| Maximum | $60,000 | $20,000 |
| Repayment period | 15 years | 10 years |
| Grace period | 2 years | 5 years (or 2 years after school) |
| Annual minimum | 1/15th | 1/10th |
Repayment Calculator Example
$60,000 Withdrawal
| Repayment A mount | Time to Repay | Total Missed Deductions |
|---|
| $4,000/year (min) | 15 years | N/A (repaid = no deduction either way) |
| $6,000/year | 10 years | N/A |
| $8,000/year | 7.5 years | N/A |
| $0/year (all added to income) | N/A | $60,000 over 15 years |
Key Takeaways
- Repayments begin 2 years after withdrawal
- Minimum is 1/15th of withdrawal each year
- Repayments are not tax-deductible
- Missed payments become taxable income
- You can pay more than the minimum to reduce balance faster
- Check your balance regularly on CRA My Account
- Designate contributions properly on Schedule 7
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