HBP (Home Buyers' Plan)

The Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their RRSP tax-free to purchase or build a qualifying home. If buying with a spouse or partner who also qualifies, you can each withdraw $60,000, providing up to $120,000 toward your down payment.

To qualify, you must be a first-time home buyer (neither you nor your spouse owned a home in the previous 4 calendar years), and the RRSP funds must have been on deposit for at least 90 days. You must also intend to occupy the home as your principal place of residence within one year.

Repayment begins in the second year after the withdrawal and must be completed over 15 years. Each year, 1/15th of the total withdrawal is the minimum repayment. If you miss a repayment, that amount is added to your taxable income for the year. You can always repay faster without penalty.

Exception: withdrawals made between 1 January 2022 and 31 December 2025 get an extended grace period — repayment starts in the fifth year after withdrawal instead of the second (a temporary COVID-era relief measure). Withdrawals from 2026 onward revert to the standard 2-year grace period before the 15-year repayment clock starts.