The Home Buyers' Plan (HBP) lets a first-time buyer take money out of a Registered Retirement Savings Plan (RRSP) to buy or build a home — without paying tax on the withdrawal, provided the money is paid back on schedule. As of 2026 the maximum withdrawal is $60,000 per person, up from the previous $35,000 limit.
This guide brings the practical points together in one place: who counts as a first-time buyer, how much you and a partner can withdraw, the 90-day contribution rule, how the withdrawal is made through the Canada Revenue Agency (CRA), the 15-year repayment schedule, and how the HBP works alongside the First Home Savings Account (FHSA). The plan is set out in the Income Tax Act and administered by the CRA.
What the Home Buyers' Plan is in 2026
The Home Buyers' Plan is a program that lets you withdraw up to $60,000 from your RRSP to put toward a qualifying first home. Because the withdrawal is not taxed the way an ordinary RRSP withdrawal would be, it effectively lets you use money you have already saved — and the tax refund you earned by contributing — as part of your down payment. The catch is that it is a loan from yourself: the amount has to be paid back into your RRSP over time.
The HBP is one of the two main federal tools for first-time buyers, alongside the newer First Home Savings Account (FHSA). It is aimed at people saving toward the purchase or construction of a home they will live in. Since 2023 the two programs can be used together for the same purchase, which is one of the biggest changes buyers ask about.
What changed for 2026 — and what stays the same
The headline change is the withdrawal limit. For withdrawals made after April 16, 2024, the maximum HBP amount rose from $35,000 to $60,000 per person. For a couple who each have their own RRSP and each qualify, that means up to $120,000 can go toward the same home.
There is also temporary repayment relief. For buyers whose first HBP withdrawal falls between January 1, 2022 and December 31, 2025, the start of the 15-year repayment period is pushed back by an extra three years, so repayment begins in the fifth year instead of the second. For a withdrawal made in 2026, the standard schedule applies: repayment starts in the second year after the year of withdrawal.
The HBP is not free money — it is a tax-free loan from your own RRSP. The amount you withdraw has to be paid back over 15 years, or the missed portion is taxed as income.
Who qualifies for the Home Buyers' Plan
The conditions fall into three groups: rules about you as a buyer, rules about the home, and rules about the RRSP money itself. All of them have to be met for the withdrawal to stay tax-free.
- You must be a first-time home buyer — generally, you did not own a home you lived in as your principal residence in the current year or the previous four calendar years;
- You must be a resident of Canada from the time of the withdrawal until the home is bought or built;
- You must intend to live in the home as your principal residence within one year of buying or building it.
- You must have a written agreement to buy or build a qualifying home in Canada (for yourself, or for a related person with a disability);
- The home must generally be bought or built before October 1 of the year after the year of withdrawal;
- Most types of housing qualify — a detached or semi-detached house, a townhouse, a condominium unit, or a mobile home.
- Funds must have been in the RRSP for at least 90 days before you withdraw them, or the contribution may not be deductible;
- The withdrawal is requested with Form T1036, given to the financial institution that holds the RRSP;
- The amount withdrawn cannot exceed $60,000 per person across all your RRSPs;
- Group and locked-in RRSPs may not allow HBP withdrawals — check with your plan administrator first.
How much you can withdraw — and how a couple can combine it
The maximum is $60,000 per person, drawn from your own RRSPs. You can take it in one lump sum or in several withdrawals in the same calendar year, as long as the total stays within the limit and each amount had been in the RRSP for at least 90 days. Two first-time buyers buying together can each use their own HBP, for a combined total of up to $120,000.
A couple buying their first home together each have their own RRSP. One withdraws $60,000 and the other withdraws $45,000, for a combined $105,000 toward the down payment — none of it taxed in the year of withdrawal. Each partner then repays their own amount over 15 years: roughly $4,000 and $3,000 per year respectively. Illustrative figures, rounded.
Two points catch people out. First, the money must have sat in the RRSP for at least 90 days before withdrawal — you cannot contribute today and withdraw next week and still keep the deduction. Second, the withdrawal is only tax-free while you keep up the repayments; miss a year's repayment and that portion is added to your taxable income for that year.
The RRSP remains one of the most common sources of down-payment funds for first-time buyers in Canada.
How the withdrawal works, step by step
The withdrawal runs through the financial institution that holds your RRSP, using a CRA form. There is no separate approval to wait for: you complete the form, your institution releases the funds without withholding tax, and the plan is reported on your tax return.
- Confirm you qualify as a first-time buyer and that your RRSP allows HBP withdrawals.
- Make sure the money has been in the RRSP for 90 days before you plan to withdraw it, so the contribution stays deductible.
- Have a written agreement to buy or build a qualifying home.
- Complete Form T1036 ("Home Buyers' Plan Request to Withdraw Funds from an RRSP") for each withdrawal and give it to your financial institution.
- Receive the funds — up to $60,000, with no tax withheld — and apply them to your purchase.
- Report the HBP on your tax return for the year, and begin repayments on the required schedule.
The Home Buyers' Plan at a glance
Four numbers do most of the work in the whole program. Keep to them and the withdrawal stays tax-free; miss one and part of the amount can end up taxed as income.
Per person, across all your RRSPs (raised from $35,000 in 2024).
Two qualifying first-time buyers, $60,000 each from their own RRSPs.
Funds must be in the RRSP this long before withdrawal to stay deductible.
Repaid to your RRSP, starting the second year after withdrawal.
Repaying the plan — and what happens if you miss a year
The HBP has to be paid back into your RRSP over a maximum of 15 years. Each year you repay at least 1/15 of the total you withdrew. Repayment normally begins in the second calendar year after the year of your withdrawal, and every year the CRA sends you a Home Buyers' Plan statement of account showing your balance and the minimum due.
A repayment is made by contributing to your RRSP and then designating that contribution as an HBP repayment on your tax return. If you repay more than the minimum in a year, your future minimums go down. If you repay less than the minimum, the shortfall is added to your income for that year and taxed — it is not a penalty as such, but you lose the tax-free benefit on that portion.
| Feature | Repay the minimum on time | Skip or underpay a year |
|---|---|---|
| Tax on the withdrawal | None — stays tax-free | The shortfall is added to income and taxed |
| Effect on RRSP room | Repayments do not use new contribution room | Amount taxed is gone from the plan permanently |
| Repayment window | Up to 15 years | Remaining balance still due over the window |
| Paying ahead | Lowers future minimums | — |
Using the HBP alongside other first-time-buyer programs
The HBP does not stand alone. For the same purchase you can also draw on the First Home Savings Account, claim the first-time buyers' tax credit, and — on a new build — apply for the GST/HST New Housing Rebate. Each has its own rules, but they are designed to work together.
| Program | Use with the HBP | Note |
|---|---|---|
| First Home Savings Account (FHSA) | Yes | Since 2023 you can use both the FHSA and the HBP for the same home. FHSA withdrawals for a first home are tax-free and are not repaid. |
| First-Time Home Buyers' Tax Credit | Yes | The Home Buyers' Amount (line 31270) is a $10,000 non-refundable credit worth up to $1,500. Independent of the HBP. |
| GST/HST New Housing Rebate | Yes | Applies to a new or substantially renovated home; separate application, does not affect the HBP. |
| Provincial land-transfer-tax rebates | Varies | Ontario, BC, PEI and the City of Toronto offer first-time-buyer rebates — rules differ by province and city. |
| First-Time Home Buyer Incentive | Ended | The federal shared-equity incentive stopped accepting new applications in 2024 and is no longer available. |
| An ordinary (taxed) RRSP withdrawal | No | A normal RRSP withdrawal is taxed and cannot be converted into an HBP withdrawal after the fact — use Form T1036 up front. |
The mistakes that cost first-time buyers the most
The error that most often causes a surprise tax bill is breaking the 90-day rule. Money contributed to an RRSP and withdrawn under the HBP within 90 days may lose its deduction — so a last-minute top-up right before a withdrawal can backfire. Contribute early enough that the 90 days have clearly passed before you file Form T1036.
A second common error is losing track of the annual repayment. Each year the CRA statement shows the minimum due; contribute to your RRSP and designate it as an HBP repayment on your return. Forget to designate it, and the CRA treats the year's minimum as income — even if you did put money into the RRSP but labelled it as a normal contribution instead.
The most expensive mistake readers describe is missing the October 1 purchase deadline. If you withdraw under the HBP but do not buy or build a qualifying home before October 1 of the following year, the withdrawal can be cancelled or taxed. Line up a firm written agreement before you pull the money out of your RRSP.
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