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The Home Buyers’ Plan (HBP) is a federal program letting eligible first-time (and some repeat) buyers withdraw up to $60,000 from their RRSP tax-free to put toward a home purchase, repayable to the RRSP over 15 years.
Each eligible buyer can withdraw up to $60,000 — so two eligible buyers purchasing together can draw up to $120,000 combined — without tax being withheld at the time of withdrawal, provided CRA’s eligibility conditions are met. The withdrawn funds typically go toward the down payment or closing costs.
Repayment isn’t optional: the withdrawn amount is repaid to the RRSP over 15 years, generally starting in the second year after the withdrawal. Any year’s required repayment that isn’t made gets added to the borrower’s taxable income for that year instead.
$60,000 per person: increased from $35,000 under Budget 2024; each eligible buyer can withdraw up to this amount.
15-year repayment: repayments to the RRSP are required annually over 15 years, or the missed amount is added to taxable income for that year.
Can be paired with the FHSA: many buyers combine FHSA savings and HBP withdrawals to boost their total down payment.
Administered by the CRA, not the lender: mortgage agents, brokers, associates, and courtiers hypothécaires can flag HBP eligibility early, but the withdrawal and repayment process runs through the CRA.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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