The Home Buyers' Plan (HBP) lets you withdraw money from your RRSPs to buy your first home, without paying tax at the time of the withdrawal. It isn't a gift: it's an interest-free loan you make to yourself, with a repayment schedule you have to follow. Here's what first-time home buyers need to know about using their RRSP: the conditions, the form, and what happens if you miss a repayment.
HBP withdrawal: the conditions
- Be a first-time buyer: you didn't live, as your principal residence, in a home owned by you or your current spouse, in the current year or the previous 4 calendar years.
- Have a written agreement to buy or build the home, which you intend to live in as your principal residence.
- Stay within the maximum: $60,000 per person. The previous limit was $35,000; it was raised in 2024.
- Buy or build in time: before October 1 of the year after your first withdrawal.
The 90-day rule
An RRSP contribution made in the 89 days before your HBP withdrawal may not be deductible. If you plan to contribute and then withdraw, make the contribution early enough, or confirm the timing with your advisor.
The HBP form: T1036
To make a withdrawal, you fill out form T1036 and give it to the financial institution that holds your RRSP, not to the Canada Revenue Agency. If your RRSPs are spread across several accounts, plan on one form per withdrawal.
The HBP can be combined with the FHSA for the same home. To see how the two add up, read our page on combining the FHSA and the HBP.
Home Buyers' Plan repayment over 15 years
You repay by contributing to your RRSP and designating that amount as an HBP repayment on your tax return. The annual minimum is roughly 1/15 of the amount withdrawn.
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General rule
Starts the 2nd year after the withdrawal
For a withdrawal made in 2026, the first repayment is for 2028.
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Withdrawals from January 1, 2022 to December 31, 2025
Start deferred to the 5th year
Repayment starts in the 5th year after the year of your first withdrawal. For a first withdrawal in 2024, for example, repayment starts in 2029.
| Amount withdrawn | Minimum per year | Term | Added to income if you skip a year |
|---|---|---|---|
| $30,000 | $2,000 | 15 years | $2,000 |
| $60,000 | $4,000 | 15 years | $4,000 |
Amounts rounded to the nearest dollar, assuming you repay exactly the minimum every year. Confirm the exact amount owing with the Canada Revenue Agency.
What happens if I skip a payment?
If you repay less than the minimum in a given year, the unpaid portion is added to your taxable income for that year, on line 12900 of your return. There's no fine and no interest, but the amount is taxed at your marginal rate.
- The money isn't lost: it stays in your RRSP or in your hands, but it's now been taxed.
- No catching up: the amount added to your income can no longer be repaid to the HBP. Your remaining balance goes down by the same amount.
- You can repay more than the minimum: a larger repayment brings your balance down faster.
Skipping a payment can therefore be a deliberate choice in a tight year, but you have to plan for the extra tax. Before deciding, run the numbers with an accountant or a financial planner.
Is the HBP enough for the down payment?
The HBP rarely covers the whole down payment and closing costs. Most first-time buyers combine it with savings, an FHSA or a gift from family. Work out the minimum required for your target price with our down payment calculator, then look at the other first-time home buyer programs.
Official sources: CRA — Home Buyers' Plan, CRA — repaying the HBP (in French), form T1036 (in French).
Frequently asked questions
How much can you withdraw from your RRSP under the Home Buyers' Plan?
Up to $60,000 per person. A couple where both partners are eligible can therefore withdraw up to $120,000 for the same home.
When does Home Buyers' Plan repayment start?
As a general rule, in the 2nd year after the withdrawal. For withdrawals made between January 1, 2022 and December 31, 2025, the start is deferred to the 5th year after the year of the first withdrawal.
What happens if you don't make your HBP repayment one year?
The unpaid portion of the annual minimum is added to your taxable income for the year (line 12900). It's taxed and can no longer be repaid to the HBP afterwards.
