This Home Buyers’ Plan calculator shows you the exact repayment schedule for your RRSP HBP withdrawal. Enter your withdrawal amount, the year of withdrawal, and your marginal tax rate to see your annual repayment requirements and the tax cost of missing payments.
For a complete guide to HBP eligibility, rules, and strategies, see our Home Buyers’ Plan Guide.
How HBP repayment works
When you withdraw from your RRSP under the Home Buyers’ Plan, you are essentially borrowing from your own retirement savings. The CRA requires you to repay the full amount over 15 years, starting 2 years after the withdrawal.
The minimum annual repayment is 1/15 of the total withdrawal. Any amount you do not repay in a given year is added to your taxable income — effectively converting that portion from a tax-free withdrawal to a regular taxable RRSP withdrawal.
Repayment amounts by withdrawal size
| Withdrawal | Annual Repayment (1/15) | Monthly Equivalent | Tax Cost per Missed Year (at 30%) |
|---|---|---|---|
| $10,000 | $667 | $56 | $200 |
| $20,000 | $1,333 | $111 | $400 |
| $30,000 | $2,000 | $167 | $600 |
| $35,000 | $2,333 | $194 | $700 |
| $40,000 | $2,667 | $222 | $800 |
| $50,000 | $3,333 | $278 | $1,000 |
| $60,000 (max) | $4,000 | $333 | $1,200 |
How to designate your repayment
HBP repayments are made through regular RRSP contributions, but you must designate them as HBP repayments on your tax return:
- Contribute to your RRSP as usual throughout the year
- When filing your tax return, complete Schedule 7 (RRSP, PRPP, and SPP Contributions)
- On Schedule 7, specify how much of your RRSP contributions should count as HBP repayment
- The designated repayment amount is not tax-deductible — it reduces your HBP balance
- Any contributions above the designated repayment are deductible as regular RRSP contributions
Example: $6,000 RRSP contribution with $4,000 HBP repayment due
| Portion | Amount | Tax Deductible? | Effect |
|---|---|---|---|
| HBP repayment designation | $4,000 | No | Reduces your HBP balance |
| Remaining RRSP contribution | $2,000 | Yes | Reduces your taxable income |
| Total RRSP contribution | $6,000 | Partial |
Accelerated repayment strategy
You can repay more than the 1/15 minimum in any year. The excess reduces your outstanding HBP balance and therefore reduces future minimum payments.
Example: $60,000 withdrawal, accelerated vs minimum repayment
| Strategy | Years to Repay | Annual Payment | Total Tax-Free |
|---|---|---|---|
| Minimum (1/15) | 15 years | $4,000 | $60,000 |
| Accelerated | 6 years | $10,000 | $60,000 |
| Aggressive | 3 years | $20,000 | $60,000 |
The financial benefit of accelerated repayment is that your RRSP balance is restored sooner, giving those funds more years of tax-sheltered compound growth before retirement.
Cost of not repaying
If you do not make the minimum HBP repayment in a given year, the shortfall is added to your taxable income. This effectively converts part of your tax-free HBP withdrawal into a taxable RRSP withdrawal.
15-year total tax cost of never repaying
| Withdrawal Amount | Marginal Tax Rate | Total Tax Cost Over 15 Years |
|---|---|---|
| $35,000 | 20% | $7,000 |
| $35,000 | 30% | $10,500 |
| $35,000 | 40% | $14,000 |
| $60,000 | 20% | $12,000 |
| $60,000 | 30% | $18,000 |
| $60,000 | 40% | $24,000 |
Never repaying a $60,000 HBP withdrawal at a 30% marginal rate costs $18,000 in total tax over 15 years — plus the loss of decades of tax-free compound growth inside your RRSP.
HBP + FHSA combined strategy
Use the HBP calculator alongside the FHSA Calculator to plan the optimal mix:
| Source | Max Amount | Repayment? | Best Use |
|---|---|---|---|
| FHSA | $40,000 | No | First priority — no repayment needed |
| HBP (this calculator) | $60,000 | Yes (15 years) | Additional funds beyond FHSA |
| Combined | $100,000/person | Partial | Full down payment strategy |
HBP eligibility and rules (2025–2026)
To use the RRSP Home Buyers’’ Plan, you must meet these eligibility conditions set by the CRA:
First-time buyer definition: You must not have owned a qualifying home that you occupied as your principal place of residence at any time in the preceding 4 calendar years (the year of withdrawal and the 4 prior years). This also applies to your spouse or common-law partner.
Written agreement required: You must have a written agreement to buy or build a qualifying home before October 1 of the year after your withdrawal.
RRSP age: You must be a Canadian resident at the time of withdrawal. Withdrawals from a spousal RRSP require additional consideration — the attribution rules apply.
RRSP seasoning: Funds must have been in the RRSP for at least 90 days before withdrawal. Contributions made within 90 days of the HBP withdrawal do not generate an RRSP deduction.
Maximum withdrawal: $35,000 per person ($70,000 for couples) as of 2024.
Repayment schedule example
For a $35,000 HBP withdrawal with a 15-year repayment period:
| Year | Annual repayment | Cumulative repaid | Remaining balance |
|---|---|---|---|
| Year 1 | $2,334 | $2,334 | $32,666 |
| Year 3 | $2,334 | $7,002 | $27,998 |
| Year 5 | $2,334 | $11,670 | $23,330 |
| Year 10 | $2,334 | $23,340 | $11,660 |
| Year 15 | $2,334 | $35,000 | $0 |
Minimum annual repayment = Withdrawal amount ÷ 15 (e.g., $35,000 ÷ 15 = $2,333/year).
If you miss a repayment year, that year’’s required repayment amount is added to your taxable income for that year.
Frequently asked questions about the HBP
Can I use the HBP more than once? You can use the HBP again if you repaid your previous HBP balance in full and meet the first-time buyer condition (no home owned in the past 4 years). This is useful for buyers who previously owned, sold, repaid HBP, and are buying again after a separation or divorce.
Can I withdraw from a spousal RRSP for HBP? Yes — you can withdraw from a spousal RRSP for the HBP, provided the first-time buyer and other eligibility conditions are met. However, if the contributing spouse made contributions within the 3 calendar years before the withdrawal, those amounts may be attributed back to the contributor’’s income (spousal RRSP attribution rules).
What happens to my HBP if I stop being a Canadian resident? If you cease to be a Canadian resident while you have an outstanding HBP balance, the full outstanding balance generally becomes includible in your income in the year you ceased residency. Plan accordingly if considering an international move.
Should I use the FHSA or HBP? For most first-time buyers, the FHSA is the better tool: contributions are tax-deductible, growth is tax-free, and withdrawals for a qualifying home are also tax-free with no repayment requirement. The HBP is a loan from yourself that must be repaid over 15 years. Many buyers combine both: FHSA up to $40,000 limit, then HBP for additional RRSP savings above that.
Related tools and guides
- Home Buyers’ Plan Guide — Complete HBP rules, eligibility, and strategies
- RRSP Calculator — Project your RRSP growth over time
- RRSP Contribution Room Calculator — How much RRSP room do you have
- FHSA Calculator — Tax-free savings for your first home
- Mortgage Affordability Calculator — How much home can you afford
- First-Time Home Buyer Guide — All Canadian programs for new buyers
- Down Payment Calculator — Minimum down payment requirements