Home Buyers' Plan (HBP): complete guide 2026

Eligibility Rules

To use the HBP, the participant must:

• Be a Canadian resident • Be considered a first-time home buyer (must not have owned a home in the preceding 4 calendar years) • Have a written agreement to buy or build a qualifying home • Intend to occupy the home as a principal residence within the year following the purchase

Since 2024, the withdrawal limit has been raised to $60,000 (previously $35,000). Each spouse may withdraw $60,000 from their own RRSP.

Repayment

Amounts withdrawn under the HBP must be repaid to the RRSP over a 15-year period, beginning in the second year after the withdrawal.

The annual minimum repayment is 1/15th of the amount withdrawn. Amounts not repaid within the required timeframe are added to taxable income for the year.

Repayments are designated in the tax return — they are not additional RRSP contributions but repayments that do not use RRSP contribution room.

Interaction with the FHSA

Since 2023, a first-time buyer may use BOTH programs:

• HBP: up to $60,000 from an RRSP (with repayment over 15 years) • FHSA: up to $40,000 (no repayment required) • Individual total: $100,000 tax-free • Couple total: $200,000 tax-free

Optimal strategy: prioritize the FHSA (no repayment required), then supplement with the HBP if needed. The FHSA is "free" while the HBP creates a repayment obligation.

Common Mistakes to Avoid

Errors to avoid:

• Contributing to the RRSP and withdrawing immediately: the contribution must have been in the RRSP for at least 90 days before the HBP withdrawal • Failing to meet the occupancy requirement: the home must be occupied within the year following the purchase • Forgetting to designate the repayment: repayments must be designated in the tax return (Schedule 7). Without the designation, a regular RRSP contribution uses contribution room instead of repaying the HBP • Failing to plan for repayments: non-repayment adds the amount to taxable income

Frequently Asked Questions