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. For a couple, that is $120,000 combined. This guide covers eligibility, withdrawal rules, repayment schedules, and how to use the HBP strategically — including combining it with the FHSA.
HBP at a glance — 2026 rules
| Feature | Details |
|---|---|
| Maximum withdrawal | $60,000 per person ($120,000 per couple) |
| Tax on withdrawal | None (if repaid on schedule) |
| Repayment period | 15 years |
| Repayment start | 2nd year after the year of withdrawal |
| Minimum annual repayment | 1/15 of total withdrawal |
| 90-day rule | Funds must be in RRSP 90+ days before withdrawal |
| First-time buyer definition | Have not owned a home in the past 4 years |
| Can be used with FHSA? | Yes — combine for $100,000/person |
Who qualifies for the HBP
To participate in the Home Buyers’ Plan, you must meet all of these requirements:
- Canadian resident — You must be a resident of Canada at the time of withdrawal and until the home is purchased
- First-time home buyer — Neither you nor your spouse/common-law partner owned and lived in a home as a principal residence in the current year or any of the 4 preceding calendar years
- Written agreement — You must have a written agreement to buy or build a qualifying home in Canada
- Intent to occupy — You must intend to occupy the home as your principal residence within one year of buying or building it
- 90-day deposit rule — The RRSP funds you withdraw must have been on deposit for at least 90 days
- Withdrawal timing — Withdrawal must be made no earlier than 30 days before closing and no later than 30 days after
The 4-year ownership reset
The “first-time buyer” definition is actually a 4-year look-back, not a lifetime restriction. If you owned a home previously but have not owned one (as a principal residence) in the last 4 calendar years, you qualify again. This means you can potentially use the HBP more than once.
Example: You sold your home in June 2021 and have been renting since. As of January 1, 2026, you have not owned a home for 4 full calendar years (2022, 2023, 2024, 2025). You qualify for the HBP again in 2026, provided your previous HBP balance is fully repaid.
How to withdraw from the HBP — step by step
Step 1: Ensure your RRSP is funded (90+ days before closing)
The 90-day rule is the most common stumbling block. If you plan to withdraw in June 2026, the contribution must have been made by March 2026 at the latest.
| Closing Date | Latest RRSP Contribution Date | Eligible for Withdrawal |
|---|---|---|
| June 1, 2026 | March 3, 2026 | June 1, 2026 |
| August 1, 2026 | May 3, 2026 | August 1, 2026 |
| October 1, 2026 | July 3, 2026 | October 1, 2026 |
Step 2: Complete Form T1036
File CRA Form T1036 — Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP with your RRSP issuer (your bank or investment provider). You can make multiple withdrawals from multiple RRSPs, but each requires a separate T1036 form.
Step 3: Receive your funds
Your RRSP issuer will release the funds without withholding tax (unlike regular RRSP withdrawals, which are subject to withholding). The funds are deposited to your bank account, typically within 5–10 business days.
Step 4: Buy your home
You must buy or build the qualifying home by October 1 of the year after withdrawal. If you withdraw in 2026, the home must be purchased by October 1, 2027.
Step 5: File your tax return
Report the HBP withdrawal on your tax return for the year of withdrawal. No tax is payable as long as you meet all conditions and begin repayments on schedule.
HBP repayment schedule
The repayment timeline is structured but has consequences for missed payments:
| Year | Event | Repayment Due |
|---|---|---|
| Year of withdrawal (e.g., 2026) | Withdraw from RRSP | None |
| Year after withdrawal (2027) | Grace period | None |
| 2nd year after withdrawal (2028) | Repayments begin | 1/15 of total |
| Years 3–15 (2029–2041) | Annual repayments continue | 1/15 of total |
| 15th year after withdrawal (2041) | Final repayment | Remaining balance |
Repayment amounts by withdrawal size
| HBP Withdrawal | Annual Repayment (1/15) | Monthly Equivalent |
|---|---|---|
| $20,000 | $1,333 | $111 |
| $35,000 | $2,333 | $194 |
| $40,000 | $2,667 | $222 |
| $50,000 | $3,333 | $278 |
| $60,000 (max) | $4,000 | $333 |
What happens if you miss a repayment
If you do not contribute the minimum amount to your RRSP and designate it as an HBP repayment, the unpaid amount is added to your taxable income for the year:
Example: You withdrew $60,000. Your minimum annual repayment is $4,000. In 2028, you only repay $1,500.
- Shortfall: $4,000 − $1,500 = $2,500
- $2,500 is added to your 2028 taxable income
- At a 30% marginal tax rate, this costs you $750 in tax
The consequence is not a penalty — it is that you lose the RRSP tax deferral on the unreturned portion. You essentially convert your RRSP withdrawal from tax-free (under HBP) to taxable (regular RRSP withdrawal).
HBP + FHSA: the ultimate combination
First-time buyers in 2026 can access up to $100,000 per person in tax-advantaged funds:
| Program | Max Withdrawal | Tax-Deductible? | Repayment Required? |
|---|---|---|---|
| FHSA | $40,000 | Yes | No |
| HBP (RRSP) | $60,000 | Already deducted | Yes (15 years) |
| Combined | $100,000 | — | Partial |
Strategy: Use your FHSA first (no repayment), then the HBP for additional funds. For a couple:
| Source | Per Person | Per Couple |
|---|---|---|
| FHSA | $40,000 | $80,000 |
| HBP (RRSP) | $60,000 | $120,000 |
| Total | $100,000 | $200,000 |
If a couple has saved $200,000 in tax-advantaged accounts, that is a 20% down payment on a $1,000,000 home — eliminating the need for CMHC mortgage insurance.
HBP vs FHSA: which should you prioritize?
| Factor | FHSA | HBP (RRSP) |
|---|---|---|
| Max amount | $40,000 | $60,000 |
| Tax deduction on contribution | Yes | Yes (regular RRSP) |
| Tax on withdrawal | None | None (if repaid) |
| Repayment required | No | Yes — 15 years |
| Time to fill | 5 years minimum | Depends on RRSP balance |
| Available to | First-time buyers only | First-time buyers (4-year reset) |
| Best for | First $40K of savings | Additional funds beyond FHSA |
Priority: FHSA first, HBP second. Every dollar in the FHSA is permanently tax-free. Every dollar from the HBP must be repaid or taxed.
Common HBP strategies
Strategy 1: Maximize the FHSA, then HBP for the gap
- Save $40,000 in FHSA over 5 years ($8,000/year)
- Accumulate RRSP through employer matching and contributions
- Withdraw from both: $40,000 (FHSA) + $60,000 (HBP) = $100,000 down payment
Strategy 2: Quick HBP boost
If you do not have 5 years to wait for FHSA:
- Contribute to RRSP (get tax deduction)
- Wait 90 days
- Withdraw under HBP
- Net effect: immediate tax deduction + tax-free home purchase funds (but must repay)
Strategy 3: Accelerated repayment
Repay the HBP faster than the 15-year minimum to restore your RRSP for retirement:
- Minimum repayment on $60K: $4,000/year
- Accelerated: $10,000/year = paid off in 6 years
- Extra repayments above the minimum are counted against your required balance
Tax implications
| Scenario | Tax Effect |
|---|---|
| Contribute to RRSP | Tax deduction in the year of contribution |
| Withdraw under HBP | No tax (no withholding) |
| Repay on schedule | No tax (restoring your RRSP) |
| Miss a repayment | Shortfall added to taxable income |
| Repay more than minimum | Excess reduces future required repayments |
Important: HBP repayments are not tax-deductible. You already got the deduction when you originally contributed to your RRSP. The repayment simply restores the tax-sheltered status of those funds.
How to report the HBP on your tax return
Year of withdrawal
| Step | What to Do |
|---|---|
| 1 | Complete Form T1036 with your RRSP issuer to request the withdrawal |
| 2 | Receive T4RSP slip from your RRSP issuer showing the HBP withdrawal (Box 27) |
| 3 | Report on Schedule 7 — RRSP, PRPP and SPP Contributions and Transfers |
| 4 | Report on Line 12900 of your T1 return — but the amount is offset by the HBP designation, so no tax is payable |
| 5 | CRA tracks your HBP balance automatically after the initial filing |
Repayment years
| Step | What to Do |
|---|---|
| 1 | Contribute to your RRSP as usual |
| 2 | On Schedule 7, designate the amount as an HBP repayment |
| 3 | The designated repayment portion is not tax-deductible (you already got the deduction originally) |
| 4 | You can contribute more than the minimum — excess reduces future required repayments |
| 5 | Check your CRA My Account for your current HBP balance and required repayment |
CRA Notice of Assessment: After filing, your Notice of Assessment will show your remaining HBP balance and the minimum repayment required for the following year. Always check this against your records.
Special exceptions
Spousal HBP
Each spouse or common-law partner can withdraw from their own RRSP under the HBP — there is no combined couple limit. However, there are rules around spousal RRSPs:
| Scenario | HBP Allowed? | Notes |
|---|---|---|
| Withdraw from your own RRSP | ✅ Yes | Standard process |
| Withdraw from a spousal RRSP that your spouse contributed to | ✅ Yes (you withdraw, not your spouse) | The account holder withdraws — attribution rules do not apply to HBP |
| Spouse contributed to spousal RRSP < 3 years ago | ✅ Still allowed for HBP | The 3-year attribution rule does NOT apply to HBP withdrawals |
| Both spouses use HBP for same property | ✅ Yes | Each can withdraw up to $60,000 ($120,000 combined) |
Key point: Attribution rules that normally apply to spousal RRSP withdrawals (3-year rule) are waived for HBP withdrawals. This makes the spousal RRSP + HBP a useful strategy for couples where one partner has a larger RRSP.
Disability exception
You do not need to be a first-time home buyer if you qualify for the disability tax credit (DTC) and are buying a more accessible home. This exception also applies if you are withdrawing to help a related person with a disability buy a suitable home.
| Requirement | Standard HBP | Disability Exception |
|---|---|---|
| First-time buyer? | ✅ Required | ❌ Not required |
| DTC eligibility | Not required | ✅ Required (Form T2201 approved) |
| Home must be more accessible | Not required | ✅ Must be better suited to the disabled person’s needs |
| Maximum withdrawal | $60,000 | $60,000 |
| Previous HBP fully repaid? | ✅ Required | ✅ Required |
Relationship breakdown exception
If your marriage or common-law partnership ends, you may qualify for the HBP again even if you owned a home within the last 4 years:
| Requirement | Details |
|---|---|
| Separation | You must have been living apart from your spouse/partner for 90+ days due to relationship breakdown |
| Timing | The breakdown must have occurred before January 1 of the year of withdrawal |
| Home ownership | You must not currently own and occupy a home |
| Previous HBP | Your previous HBP balance must be fully repaid before January 1 of the withdrawal year |
This exception is designed for separated individuals who need to purchase a new home after leaving the matrimonial home.
Common HBP mistakes
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Contributing to RRSP less than 90 days before withdrawal | Contribution is not eligible for HBP; may be denied | Plan contributions 3+ months before closing |
| Not designating RRSP contribution as HBP repayment | CRA treats it as a regular RRSP contribution; shortfall is added to income | Designate on Schedule 7 each year |
| Missing repayment deadline | Unpaid amount is taxed as income | Set calendar reminders; automate contributions |
| Withdrawing more than needed | Excess must still be repaid over 15 years | Withdraw only what you need for the down payment and closing costs |
| Assuming the HBP is “free money” | It’s a loan from your future retirement — it must be repaid | Factor repayments into your post-purchase budget |
Related tools and guides
- FHSA Calculator — Calculate your FHSA growth and withdrawal
- RRSP Calculator — Estimate your RRSP savings
- First-Time Home Buyer Guide — Complete guide with all programs
- Mortgage Affordability Calculator — How much home can you afford
- Down Payment Calculator — Minimum down payment requirements
- Mortgage Pre-Approval — Getting pre-approved
- Closing Costs Calculator — Budget for transaction costs