Canada Home Buyers' Plan Guide (HBP)

the Home Buyers' Plan (HBP) in Canada. The HBP allows the taxpayers to withdraw up to $60,000 (increased from $35,000 in the 2024 Federal Budget, effective for the withdrawals after April 16, 2024) from the RRSP to buy or build the first home in Canada. The withdrawal is tax-free (the RRSP withholding tax does NOT apply to the HBP withdrawals). The taxpayer must be a first-time home buyer — the taxpayer must not have owned a home (or the spouse must not have owned a home) in the prior 4 calendar years. The withdrawal must be used for the qualifying home in Canada (the single-family home, the condominium, the mobile home, the semi-detached home, or the townhouse) that is occupied by the taxpayer (or the spouse) within 1 year of the purchase. The repayment period is 15 years — the annual repayment is 1/15th of the total HBP withdrawal. The repayments start in the 2nd year after the withdrawal year (the "HBP repayment grace period" — the taxpayer has until March 2 of the 2nd year after the withdrawal to make the first repayment). The HBP repayment is made through the RRSP contribution that is designated as the HBP repayment (the taxpayer cannot deduct the HBP repayment from the income). The missed HBP repayment is added to the taxpayer's income in the year of the missed payment (the "HBP income inclusion"). The joint HBP allows the spouses to each withdraw up to $60,000 from their own RRSPs for the same home purchase (for a total of $120,000 per couple). The taxpayer can use the HBP and the FHSA together (the FHSA provides the additional $60,000 per person for the first home purchase).

HBP Eligibility

First-time home buyer: The taxpayer must not have owned a home (or the spouse/common-law partner must not have owned a home) in the prior 4 calendar years. The taxpayer must occupy the home as the principal residence within 1 year of the purchase.
Disabled taxpayer: The taxpayer with the disability (the DTC certification) does NOT need to be the first-time home buyer — the disabled taxpayer can use the HBP for the purchase of the accessible home (the home that meets the accessibility needs). The spouse or the dependant with the disability also qualifies.
RRSP account: The funds must be in the RRSP for at least 90 days before the withdrawal (the "90-day rule"). The contributions made within 90 days of the withdrawal are NOT eligible for the HBP (the withdrawal is still allowed, but the tax deduction for the contribution within 90 days is denied).
Withdrawal period: The taxpayer can make the HBP withdrawal in the year of the home purchase or the following year (the "HBP withdrawal window" — the withdrawal must be made before the end of the year following the year of the purchase).

HBP Amounts & Withdrawal

Maximum withdrawal: $60,000 per person (2024+). The withdrawal is the "participant's HBP balance" — the total amount withdrawn under the HBP. The maximum for the pre-2024 withdrawals was $35,000.
Minimum withdrawal: No minimum (the taxpayer can withdraw any amount up to $60,000). The taxpayer can make multiple HBP withdrawals (the "multiple withdrawals" — the total cannot exceed $60,000).
Withholding tax: The HBP withdrawal is exempt from the RRSP withholding tax (the financial institution does NOT withhold the tax). The taxpayer receives the full amount of the withdrawal.
T4RSP reporting: The financial institution reports the HBP withdrawal on the T4RSP slip (Box 27 for the "HBP withdrawal"). The taxpayer reports the HBP withdrawal on the Schedule 7 (the "Home Buyers' Plan" section).

HBP Repayment

Repayment period: 15 years. The first repayment is due in the 2nd year after the withdrawal (the "grace year"). The taxpayer must repay 1/15th of the total HBP balance each year.
Repayment amount: $4,000 per year (for the $60,000 withdrawal). The annual repayment is calculated as 1/15th of the HBP balance at the time of the withdrawal.
Repayment method: The taxpayer contributes to the RRSP and designates the contribution as the HBP repayment (the "HBP repayment designation") on the Schedule 7. The HBP repayment does NOT create the RRSP deduction — the repayment is made with the after-tax dollars.
Missed repayment: If the taxpayer fails to make the annual repayment by March 2 of the following year, the missed repayment amount is added to the taxpayer's income (the "HBP income inclusion"). The HBP balance is reduced by the included amount.

HBP vs FHSA

HBP: $60,000 withdrawal from the RRSP. The repayment is required over 15 years. The RRSP contribution room is required for the initial contribution. The HBP is best for the taxpayers who already have the significant RRSP savings.
FHSA: $60,000 lifetime limit (tax-deductible contributions, tax-free growth, and tax-free withdrawals). No repayment is required. The FHSA is best for the taxpayers who are saving for the first home from scratch (the FHSA contributions are separate from the RRSP room).
Combined strategy: The taxpayer can use both the HBP and the FHSA for the same home purchase. The total withdrawal per person is $120,000 ($60,000 from the FHSA + $60,000 from the HBP). The taxpayer can open the FHSA and contribute up to $8,000 per year while also making the RRSP contributions for the HBP.

For the FHSA rules and the first-time home buyer programs, see our FHSA Guide →. For the RRSP contribution limits and the deduction strategies, see our RRSP Guide →.