The Home Buyers' Plan (HBP) is a federal program that allows first-time home buyers in Canada to withdraw up to $60,000 from their RRSP tax-free and use those funds toward the purchase of a qualifying home. As of the 2024 federal budget, the HBP limit increased from $35,000 to $60,000 per person — which means a couple purchasing together, where both qualify as first-time buyers, can access up to $120,000 from their RRSPs combined. The withdrawn funds must be repaid to your RRSP over 15 years, starting 2 years after the calendar year of your first withdrawal. This guide covers who qualifies, how to make the withdrawal, what the repayment schedule looks like, and how to combine the HBP with the First Home Savings Account (FHSA).
For all the programs available to first-time buyers, see first-time home buyer benefits in Ontario. For how the HBP fits into your overall down payment strategy alongside the FHSA, see how much down payment you need to buy a home.
Who Qualifies for the Home Buyers' Plan
To participate in the HBP, you must meet all of the following conditions:
- First-time buyer: You (and your spouse/common-law partner, if applicable) cannot have owned a principal residence that you occupied at any time in the current calendar year or the preceding 4 calendar years. This is the standard 4-year look-back rule used across most federal first-time buyer programs.
- Written agreement: You must have a signed agreement to buy or build a qualifying home before October 1 of the year after your withdrawal
- Canadian resident: You must be a Canadian resident at the time of the withdrawal and when you acquire the home
- Intend to occupy: The home must be your principal residence, which you intend to move into within one year of acquiring it
- RRSP funds aged 90 days: The funds you withdraw must have been in your RRSP for at least 90 days before the withdrawal date
The 90-day rule catches buyers who try to contribute to their RRSP specifically for an imminent withdrawal. Contributions made within 90 days of the HBP withdrawal do not generate a deduction in the year of the HBP withdrawal — they must sit in the RRSP for 90 days before being eligible.
How Much You Can Withdraw
The maximum HBP withdrawal is $60,000 per person (as of 2024). This is a lifetime limit, not an annual limit. You can make multiple withdrawals across multiple calendar years as long as the total doesn't exceed $60,000 and all withdrawals are for the same qualifying home purchase.
For two first-time buyers purchasing together, the combined maximum is $120,000:
- Buyer 1 withdraws up to $60,000 from their RRSP
- Buyer 2 withdraws up to $60,000 from their RRSP
- Each person's withdrawal and repayment are tracked separately by CRA
You can only withdraw from your own RRSP — not your spouse's, even if your spouse is a joint purchaser. If your RRSP holds less than $60,000, you can only withdraw what's there.
Making the HBP Withdrawal
Contact your RRSP issuer (bank or investment firm) and complete CRA Form T1036 (Home Buyers' Plan Request to Withdraw Funds from an RRSP). Your issuer processes the withdrawal and issues the funds. No withholding tax is applied because the withdrawal is under the HBP program — it's tax-free at withdrawal, provided you repay it over time.
Keep the T4RSP slip your issuer sends — you'll need it for your tax return. You'll report the HBP withdrawal on Schedule 7 of your T1 return for the year of withdrawal, which tracks your HBP balance with CRA.
Repayment Rules
The HBP withdrawal is not a forgiven amount — it's an interest-free loan from your future self. You must repay the full amount to your RRSP over 15 years.
- When repayments start: 2 years after the calendar year of your first HBP withdrawal. If you withdrew in 2025, your first repayment year is 2027.
- How much per year: The total withdrawn divided by 15. If you withdrew $60,000, you must repay $4,000/year for 15 years.
- What happens if you don't repay a given year: The required repayment amount for that year is added to your income and taxed at your marginal rate. There's no interest or penalty beyond the tax consequence.
- How to make repayments: Contribute to your RRSP and designate the contribution as an HBP repayment on Schedule 7 of your T1. Contributions not designated as repayments count as regular RRSP contributions (providing a deduction) but don't reduce your HBP outstanding balance.
Combining the HBP with the First Home Savings Account (FHSA)
You can use both the HBP and the FHSA for the same qualifying home purchase. The two programs are designed to work together:
| FHSA | Home Buyers' Plan (HBP) | |
|---|---|---|
| Maximum amount | $40,000 lifetime contributions | $60,000 withdrawal |
| Tax on withdrawal | None (fully tax-free) | None at withdrawal; taxed if not repaid |
| Repayment required | No | Yes, over 15 years |
| Best for | Tax-advantaged savings you don't repay | Existing RRSP savings |
Strategy for first-time buyers with both accounts: withdraw from your FHSA first (no repayment required), then supplement with the HBP withdrawal from your RRSP. The FHSA is strictly better on a per-dollar basis because there's no repayment obligation — use it to its maximum before tapping RRSP funds.
What Happens if You Don't Buy the Home
If you make an HBP withdrawal but the home purchase falls through, you have until October 1 of the year after your withdrawal to use the funds for a qualifying purchase. If no qualifying purchase is made by that deadline, the full withdrawn amount must be returned to your RRSP before that date, or it will be included in your income for the withdrawal year. Contact CRA or a tax advisor immediately if your purchase doesn't close after an HBP withdrawal.
Ready to find your first home in the GTA? Browse active listings on Condohill and see what your budget can reach with FHSA and HBP funds factored in.
FAQ
How much can I withdraw from my RRSP under the Home Buyers' Plan?
The maximum HBP withdrawal is $60,000 per person, as of the 2024 federal budget (increased from $35,000). Two first-time buyers purchasing together can each withdraw $60,000, for a combined maximum of $120,000. The funds must have been in the RRSP for at least 90 days before withdrawal.
When do I have to start repaying the Home Buyers' Plan?
Repayments must begin 2 years after the calendar year of your first HBP withdrawal. If you first withdrew in 2025, your first repayment year is 2027. You then have 15 years to repay the full amount — $4,000/year on a $60,000 withdrawal. If you miss a year's repayment, that amount is added to your taxable income for that year.
Can I use the Home Buyers' Plan and FHSA together?
Yes. Both programs can be used on the same qualifying home purchase. The FHSA (up to $40,000 tax-free, no repayment required) and the HBP (up to $60,000, repay over 15 years) can be combined for a potential $100,000 per person in tax-advantaged funds toward a first home.
What is the 90-day rule for RRSP withdrawals under the HBP?
RRSP funds must have been in the account for at least 90 days before the HBP withdrawal date to be eligible. Contributions made within 90 days of the withdrawal are technically withdrawable, but those recent contributions cannot be deducted on your tax return for the withdrawal year. Plan your RRSP contributions at least 90 days before you intend to make an HBP withdrawal.
Does the Home Buyers' Plan apply to pre-construction condos?
Yes, provided you have a signed agreement to buy or build a qualifying home before October 1 of the year after your withdrawal. For pre-construction condos, the signed purchase agreement with the builder is the qualifying agreement, even if the building won't be complete for several years. Confirm the HBP eligibility timeline with your tax advisor based on your specific purchase agreement date and anticipated closing date.
What happens to my HBP balance if I die or become a non-resident?
If you become a non-resident of Canada, your entire remaining HBP balance becomes income in that year. In the case of death, the remaining HBP balance is generally included in the deceased's final return as income, unless a qualifying surviving spouse or common-law partner assumes the HBP balance. A tax advisor should be consulted in either situation.