The Home Buyers’ Plan (HBP) lets first-time buyers take up to $60,000 out of their RRSPs tax-free for a home, as long as the money goes back in over 15 years. This guide covers who qualifies, the 2026 repayment schedule, how the HBP stacks with an FHSA, and what RRSP issuers charge to process the withdrawal. YieldMaple checked every rule below against the Canada Revenue Agency’s HBP pages on October 6, 2026. This page is general education, not financial advice.
Related: FHSA explained · FHSA contribution limit 2026 · Best FHSA in Canada · RRSP explained · FHSA vs TFSA. The RRSP calculator and the FHSA contribution limit guide help size each account before a purchase.
Home Buyers’ Plan at a glance
| Feature | Home Buyers' Plan (RRSP) | FHSA |
|---|---|---|
| Tax-free amount for a home | $60,000 (better on this row) | all of the property in your FHSAs, tax-free |
| How money gets in | RRSP deduction room (2026 dollar limit $33,810) | $8,000 a year, $40,000 lifetime |
| Repayment | Over 15 years | Repayment not required (better on this row) |
| Repayment start (first withdrawal 2026–2028) | Fifth year after the withdrawal year (2026 withdrawal: 2031) | No repayment |
| Recent contributions | May lose their deduction if made in the 89 days before withdrawal | Holding period: no minimum number of days |
| Deadline to buy or build | before October 1 of the year after the year of your first withdrawal | a written agreement to buy or build the home, with a completion date before October 1 of the year after the withdrawal |
| Withdrawal form | Form T1036, filled out for each withdrawal and given to your RRSP issuer | Form RC725, given to your FHSA issuer |
Sources: Canada Revenue Agency, The Home Buyers' Plan and Withdrawals and transfers out of your FHSAs, checked October 6, 2026.
Every row above also appears in the sections below: the HBP limit is $60,000, while a qualifying FHSA withdrawal can take all of the property in your FHSAs, tax-free and is never repaid.
What is the Home Buyers’ Plan?
The Home Buyers’ Plan is a CRA program that lets you withdraw from your RRSPs, tax-free, to buy or build a qualifying home, then repay the money over 15 years.
A normal RRSP withdrawal is added to your income and taxed. The HBP suspends that rule as long as the money goes back into an RRSP on schedule, which makes it work like an interest-free loan from your own retirement savings. The trade-off is time out of the market: the withdrawn amount stops growing tax-sheltered until it is repaid.
A qualifying home is a housing unit in Canada, existing or under construction, including condos, townhouses and apartments in duplexes through fourplexes. The HBP can also be used to buy or build a home for a specified disabled person (as the CRA defines the term), in which case the first-time buyer test does not apply.
How much can you withdraw under the HBP in 2026?
The 2026 Home Buyers’ Plan limit is $60,000 per person, withdrawn from your own RRSPs.
- Per person, not per home. The cap is $60,000 in total from your own RRSPs, so two eligible buyers of the same home can each withdraw up to that amount, for $120,000 combined.
- No tax withheld. Your RRSP issuer withholds none on HBP withdrawals of $60,000 or less.
- Above the cap is taxable. Per the CRA, any amount above $60,000 is reported as income, and the issuer withholds tax on the excess.
- Timing. You can make several withdrawals, but only in the same calendar year as your first withdrawal, and in January of the following year.
- Account type. Withdrawals are normally not allowed from a locked-in RRSP or a group RRSP, so check what kind of RRSP holds the money.
Who qualifies for the Home Buyers’ Plan?
You qualify as a first-time home buyer with a written purchase or build agreement, Canadian residency, and a plan to live in the home within a year.
- First-time home buyer: you did not live, as your principal residence, in a home you or your current spouse or common-law partner owned at any time in the current calendar year before the withdrawal (except the 30 days just before it) or in the previous four calendar years. A spouse’s or common-law partner’s home counts, even if you were never on title.
- Written agreement: a written agreement to buy or build a qualifying home at the time of the withdrawal (a pre-approved mortgage does not count).
- Residency: you must be a resident of Canada when you withdraw, and until you buy or build the home.
- Occupancy: you must intend to live in the home as your principal residence no later than one year after buying or building it.
- Separation exception: the first-time buyer test does not apply if you live separate and apart from your spouse or common-law partner and the separation began in the withdrawal year or the four years before. Per the CRA, the exception is not available when your current principal residence is a home owned and occupied by a new spouse or common-law partner.
- Earlier participation: a repeat is allowed again if your HBP balance is zero on January 1 of the year of the new withdrawal and you meet the other conditions.
The four-year look-back means the HBP is not strictly once in a lifetime. Someone who sold a home and has rented for the whole current year and the four calendar years before it can qualify again.
When do HBP repayments start?
For a first withdrawal from January 1, 2026 to December 31, 2028, repayments start in the fifth year after the withdrawal year, so a 2026 withdrawal is first repaid in 2031.
Per the CRA, repayment begins in the fifth year after the year of your first withdrawal (for a first HBP withdrawal made from January 1, 2026 to December 31, 2028), so a first withdrawal in 2026 is first repaid in 2031. The start year depends on when the first withdrawal was made:
| First HBP withdrawal made | First repayment year |
|---|---|
| Before January 1, 2022 | Second year after the withdrawal year |
| January 1, 2022 to December 31, 2025 | Fifth year after the withdrawal year |
| January 1, 2026 to December 31, 2028 | Fifth year after the withdrawal year (2026 withdrawal: 2031) |
Per the CRA, repayment for the oldest withdrawals began in the second year after the year of the first withdrawal (first withdrawals before January 1, 2022), and withdrawals from 2022 to 2025 start in the fifth year after the year of the first withdrawal (first withdrawals from January 1, 2022 to December 31, 2025). Many older guides still say repayment starts in the second year; that rule no longer applies to new withdrawals.
How does HBP repayment work?
Each year you contribute to your RRSP and designate part of it as an HBP repayment; the minimum is your remaining balance divided by the years left.
- Minimum each year: your HBP balance divided by the number of years left in your repayment period.
- When to contribute: in the year the repayment is due or in the first 60 days of the following year.
- How to designate it: on Schedule 7, line 24600, filed with your tax return.
- No new deduction: none; an amount designated as a repayment cannot be deducted. On the other hand, repayments can be made even if your RRSP deduction limit is zero.
- Not into an FHSA: repaying the HBP into an FHSA is not allowed.
- Early repayment: you can repay the full amount at any time, and paying more than the minimum lowers the minimum for later years.
Worked example: a 2026 withdrawal
Take a first withdrawal of $60,000 in 2026, the full $60,000 limit.
- First repayment year: 2031, per the CRA’s temporary relief.
- Minimum repayment: $4,000 a year, for 15 years, ending in 2045.
- In 2031, an RRSP contribution of $10,000 could be split: $4,000 designated as the HBP repayment (not deductible) and $6,000 treated as a regular contribution, deductible if it fits within your RRSP deduction limit.
- If the 2031 repayment is skipped, the unpaid minimum is included as RRSP income on line 12900 of your tax return for that year. At 2026’s second federal rate of 20.5% (taxable income of $58,523.01 to $117,045), $820 of that would be federal tax alone, before provincial tax.
The CRA’s own example follows the same arithmetic: $2,000 a year starting in 2028 on a $30,000 withdrawal made in 2023 ($30,000 ÷ 15). The HBP statement of account that arrives with each notice of assessment shows the exact minimum due for the next year.
How do the HBP and FHSA stack?
The HBP and FHSA stack: the CRA allows an HBP withdrawal and a qualifying FHSA withdrawal for the same home, if you meet each account’s conditions at the time.
Per the CRA, using both for one home is allowed — you can make an HBP withdrawal and a qualifying FHSA withdrawal for the same qualifying home if you meet the conditions of each. The FHSA (First Home Savings Account) opened on April 1, 2023, and the two accounts differ in important ways:
- Repayment. A qualifying FHSA withdrawal is not required to be repaid; HBP money goes back into the RRSP over 15 years.
- Holding period. The FHSA has no minimum number of days; HBP contributions made in the 89 days before a withdrawal can lose their deduction.
- Size. FHSA contributions are limited to $8,000 a year and $40,000 for life, while the HBP cap is $60,000.
For one buyer who has contributed the full $40,000 to an FHSA and has at least $60,000 in an RRSP, the combined tax-free amount is $100,000 plus FHSA growth. Two eligible buyers with both accounts full can reach $200,000 plus FHSA growth. The FHSA vs TFSA comparison and the FHSA explained guide cover the FHSA’s own rules in more depth.
How long must money be in your RRSP before an HBP withdrawal?
There is no minimum for eligibility, but RRSP contributions made in the 89 days before an HBP withdrawal may not be deductible.
The CRA puts it this way: RRSP contributions may not be deductible if made in the 89 days before the HBP withdrawal. The test compares the RRSP’s value to the recent deposits: the RRSP's value just after the withdrawal must be at least equal to the contributions made in the 89 days before it for them to be fully deductible. In practice, money that was already in the RRSP for more than 89 days is untouched, and a contribution made shortly before closing only keeps its deduction if enough stays in that same RRSP after the withdrawal. A contribution made on March 1 for a withdrawal in April falls inside the 89-day window.
When the HBP may not fit
The HBP works best when the RRSP is large and the repayment is affordable. It carries real costs in some situations:
- The FHSA has unused room. A qualifying FHSA withdrawal never has to be repaid, so HBP money is the more expensive of the two per dollar withdrawn.
- The RRSP is small relative to the withdrawal. Pulling most of an RRSP out removes it from tax-sheltered growth for years, which can matter more than the down payment gain.
- The contribution deduction is small. At lower incomes, an RRSP deduction saves less tax, so depositing new money into an RRSP only to withdraw it through the HBP gains less. The TFSA vs RRSP guide walks through that trade-off.
- Repayment cash flow is tight. Each missed minimum becomes taxable income, every year, for up to 15 years.
How to make an HBP withdrawal, step by step
- Confirm eligibility. Check the first-time buyer test above, and look up your RRSP deduction limit and any old HBP balance in your CRA account.
- Check contribution timing. Money already in the RRSP for more than 89 days is outside the deduction rule above.
- Sign a purchase or build agreement. The CRA requires a written agreement to buy or build a qualifying home at the time of the withdrawal (a pre-approved mortgage does not count).
- Fill out Form T1036. The rule is Form T1036, filled out for each withdrawal and given to your RRSP issuer; the issuer completes Area 2 and releases the money.
- Buy or build on time. The home must be acquired or built before October 1 of the year after the year of your first withdrawal.
- Move in. Per the CRA, you must intend to live in the home as your principal residence no later than one year after buying or building it.
- Track repayments. Starting in your first repayment year, contribute and designate the minimum on Schedule 7 each year. The HBP balance also appears in your CRA account.
What do RRSP issuers charge for an HBP withdrawal?
Some brokerages charge nothing to process an HBP withdrawal, while others charge a flat fee per withdrawal; the CRA sets no fee.
| Feature | Fee to process an HBP withdrawal |
|---|---|
| CIBC Investor's Edge | $0 (better on this row) |
| RBC Direct Investing | $25 |
| Questrade | $25 for a partial Home Buyers' Plan or Lifelong Learning Plan withdrawal ($50 for a full one) |
| Qtrade | $50 per partial withdrawal from an RRSP or other registered plan, including Home Buyers' Plan withdrawals (RESPs, TFSAs and FHSAs excepted) |
| National Bank Direct Brokerage | $50 |
Sources: each brokerage's published fee schedule, checked September 23–24, 2026. Fees can change; confirm with the issuer before filing Form T1036.
In sentence form: CIBC Investor’s Edge lists $0, RBC Direct Investing lists $25, Questrade charges $25 for a partial Home Buyers' Plan or Lifelong Learning Plan withdrawal ($50 for a full one), Qtrade charges $50 per partial withdrawal from an RRSP or other registered plan, including Home Buyers' Plan withdrawals (RESPs, TFSAs and FHSAs excepted), and National Bank Direct Brokerage charges $50 for a lump-sum RRSP withdrawal, including HBP withdrawals. Because several withdrawals are allowed in the same window, a per-withdrawal fee adds up if the money comes out in pieces. The best RRSP accounts in Canada guide compares issuers on their other fees.
Common HBP mistakes
- Missing the first-time buyer test through a partner. Living in a home your current spouse or common-law partner owned counts against you, even if you never owned it.
- Withdrawing with a pre-approval only. A mortgage pre-approval is not a written agreement to buy or build.
- Starting a new HBP with an old balance. A second participation needs a zero balance on January 1 of the withdrawal year.
- Trying to cancel a withdrawal that still qualifies. Cancelling is generally not allowed once the conditions are met; possible mainly if you did not buy or build a qualifying home or became a non-resident before buying (Form RC471). A delayed home you still plan to occupy does not qualify.
- Taking out more than the cap. Anything over $60,000 is ordinary taxable income.
- Designating the whole contribution as a repayment. Only the minimum has to be designated; the rest can stay a regular, deductible RRSP contribution if you have room.
- Following outdated repayment dates. New withdrawals from 2026 to 2028 start repaying in the fifth year, not the second.
If a withdrawal fails a condition, part or all of it is added to your income for the year you received it, so each condition is worth checking before Form T1036 goes to the issuer.
Read next
- RRSP contribution limit 2026: how much RRSP room you have before an HBP withdrawal
- How to invest in Canada: investing basics
- How to open a TFSA: pair a down payment fund with TFSA savings
- Best FHSA in Canada: where to open the FHSA side of the plan
- TFSA contribution limit 2026: TFSA limits