Home Buyers' Plan
HBP
A program that lets first-time buyers withdraw up to $60,000 from their RRSPs tax-free for a home, repaid over 15 years.
The Home Buyers' Plan (HBP) lets you withdraw money from your RRSPs to buy or build a qualifying home. The withdrawal is not taxed, as long as you repay it to your RRSPs on schedule. In practice, it works like an interest-free loan from your own retirement savings.
The current withdrawal limit is $60,000, raised from $35,000 in Budget 2024. You generally must be a first-time home buyer. You do not qualify if, in the current year or the previous four calendar years, you lived in a home you owned. The same applies to a home owned by your current spouse or common-law partner. Different rules apply when the withdrawal helps a person with a disability.
Other conditions apply when you withdraw. You need a written agreement to buy or build the home, and you must be a resident of Canada. You must intend to live there as your principal residence within one year. The home generally must be bought or built before October 1 of the year after your first withdrawal.
You have up to 15 years to repay. Repayments normally start in the second year after the withdrawal. Temporary relief moves the start to the fifth year for withdrawals made from January 1, 2022 to December 31, 2025. The relief now also covers a first withdrawal made from 2026 to 2028. For example, a first withdrawal in 2026 means repayments begin in 2031.
Missing a repayment is costly. Any shortfall from the yearly minimum is added to your income as RRSP income and taxed. You can repay more than the minimum, or the whole balance, at any time. The HBP can be combined with a qualifying FHSA withdrawal for the same home.
Sources
- CRA: The Home Buyers' Plan
- CRA: How to participate in the Home Buyers' Plan
- CRA: How to repay amounts withdrawn under the Home Buyers' Plan
- CRA: The HBP, understanding eligibility and withdrawals
Last reviewed October 16, 2026.
Go deeper
Related terms in Mortgage & Buying
- Interest Rate Differential A prepayment penalty formula based on the gap between your mortgage rate and current rates, charged when you break a mortgage early.
- Land Transfer Tax A tax buyers pay when property changes hands, set by the province, with Toronto adding its own municipal tax on top.
- Mortgage Broker A licensed professional who compares mortgages from several lenders and arranges one for you, and is usually paid a commission by the lender.
- Mortgage Pre-Approval A lender's review of your income, debts and credit that estimates how much you may borrow and often holds a rate for 60 to 130 days.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.