Home Buyers' Plan (HBP): Using Your RRSP for a Down Payment

Quick Facts

$60,000 max per person (or $120,000 per couple) — no tax on withdrawal.
15 years to repay, starting the second year after the year of withdrawal.
Funds must sit in RRSP 90 days before withdrawal or they don't qualify.

What is the Home Buyers' Plan?

The Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home — completely tax-free at the time of withdrawal. The 2024 federal budget increased this limit from $35,000 to $60,000, a massive change that significantly boosts down payment power for Canadian buyers.

It's important to understand: unlike an FHSA withdrawal, an HBP withdrawal is not a gift. You are borrowing from your future retirement. The money must be repaid back into your RRSP over 15 years. If you don't repay in a given year, the CRA treats the missed repayment as income and taxes you accordingly.

Who Qualifies?

You must be a first-time home buyer (Haven't owned a qualifying home in the current year or preceding 4 years).
You must have a written Agreement of Purchase and Sale for a qualifying home.
You must intend to occupy the home as your principal place of residence within one year of buying or building it.
If buying with a partner, each of you can make a separate $60,000 withdrawal — so $120,000 total.

The 90-Day Rule: Critical Timing

Funds contributed to an RRSP must remain deposited for at least 90 days before they can be withdrawn under the HBP. This is a hard rule. If you contribute to your RRSP and try to withdraw it before the 90-day window, those specific funds will not count for the HBP and could cause complications.

Action Item: If you're planning to use the HBP, make sure your RRSP funds have been sitting in the account for at least 3 months before your closing date.

Step-by-Step: How to Make an HBP Withdrawal

Confirm you have a signed Agreement of Purchase and Sale with a closing date.
Download Form T1036 — "Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP" — from the CRA website.
Complete Part 1 of the form and submit it to your RRSP issuer (your bank or broker).
Your institution will process the withdrawal and provide a receipt. No tax will be withheld.
Report the HBP withdrawal on your T1 income tax return for the relevant year (it appears on your T4RSP slip as a withdrawal, but is specifically coded as an HBP withdrawal).

Repayment Schedule

Starting in the second year after your withdrawal year, you must repay 1/15th of the total amount withdrawn each year for 15 years.

Example: If you withdrew $60,000 in 2026, your first repayment is due in 2028, and you'd need to contribute at least $4,000/year back to your RRSP and designate it as an HBP repayment.

HBP + FHSA: A Powerful Combination

The HBP and FHSA can be used on the same home purchase. A single buyer could theoretically access $100,000 in tax-sheltered funds for a down payment ($40K FHSA + $60K HBP). A couple could combine for $200,000. This is one of the most powerful wealth-building moves available to Canadian first-time buyers today.

Official Source: CRA — Home Buyers' Plan (HBP)

Frequently Asked Questions

How much can I withdraw from my RRSP under the Home Buyers' Plan in 2026?

The Home Buyers' Plan (HBP) allows eligible first-time buyers to withdraw up to $60,000 from their RRSP completely tax-free at the time of withdrawal. For couples purchasing together where both qualify as first-time buyers, each partner can withdraw $60,000 from their own RRSP — a combined maximum of $120,000. This limit was increased from $35,000 in the 2024 federal budget. The withdrawn funds must be repaid to your RRSP over 15 years starting the second year after the year of withdrawal.

What is the 90-day RRSP rule for the Home Buyers' Plan?

Funds must remain deposited in your RRSP for a minimum of 90 consecutive days before they can be withdrawn under the HBP. If you contribute money to your RRSP and attempt to withdraw it within 90 days for an HBP withdrawal, those specific funds do not qualify — they cannot be included in your HBP withdrawal amount and would be treated as a taxable withdrawal. This is a hard CRA rule, not a guideline. If you're planning to use the HBP, ensure your RRSP funds have been sitting in the account for at least 3 full months before your anticipated closing date.

Does the HBP repayment affect my annual RRSP contribution room?

No. HBP repayments are separate from your annual RRSP contribution room. You designate repayments on Schedule 7 of your T1 return each year — they reduce your outstanding HBP balance but do not consume your annual RRSP contribution room. If you fail to make your designated annual repayment (1/15th of the total withdrawn, starting in year 2), the CRA adds that missed repayment amount to your taxable income for that year. You can always pay back more than the minimum in any given year to reduce the outstanding balance faster.

Can I use both the FHSA and the HBP on the same home purchase?

Yes — stacking the FHSA and HBP on the same purchase is one of the most powerful down payment strategies available to Canadian first-time buyers. A single buyer can withdraw up to $40,000 from their FHSA (tax-free, no repayment required) plus $60,000 from their RRSP via HBP (no tax at withdrawal, but must be repaid over 15 years) — for $100,000 in total registered funds. A couple meeting both sets of eligibility criteria can access $200,000 combined. This is entirely CRA-compliant and the combination is explicitly contemplated in the FHSA legislation.