The Home Buyers’ Plan (HBP) lets a first-time home buyer withdraw up to $60,000 from RRSPs tax-free to buy or build a qualifying home. A couple where both partners qualify can each withdraw $60,000 for a combined $120,000. The withdrawn amount must be repaid into RRSPs over 15 years, starting the second year after withdrawal. The HBP can be combined with the First Home Savings Account (FHSA), which has separate rules and does not require repayment.
2026 HBP rules
| Rule | Limit or amount |
|---|---|
| Maximum withdrawal per individual | $60,000 |
| Maximum combined for spouses (both first-time buyers) | $120,000 |
| Repayment period | 15 years |
| First repayment due | Second year after withdrawal year |
| Annual minimum repayment | 1/15 of withdrawn amount |
| RRSP contribution required to qualify | Funds must be in RRSP at least 90 days before withdrawal |
The $60,000 limit applies per HBP withdrawal cycle, not per lifetime. A homeowner who fully repays a previous HBP can use the program again for a subsequent first home purchase, provided they meet the first-time buyer rule at the time of new withdrawal.
Eligibility requirements
To qualify for the HBP, the participant must be a Canadian resident, a first-time home buyer (no homeownership in current calendar year or four preceding calendar years), have a written agreement to buy or build a qualifying home, intend to occupy the home as a principal residence within one year, and have RRSP funds eligible for withdrawal (held at least 90 days).
“First-time home buyer” status is also satisfied if the person has not occupied a qualifying home that they or their current spouse owned in the year of withdrawal or four preceding calendar years. A previously divorced person who lost their home qualifies if they meet the 4-year non-ownership rule.
How to make an HBP withdrawal
The withdrawal is initiated through the financial institution holding the RRSP. The participant completes Form T1036 (Home Buyers’ Plan Request to Withdraw Funds from an RRSP) and submits it to the RRSP issuer. The issuer pays out the funds without withholding tax, provided the form is filed and the participant meets HBP rules.
The withdrawal must be received by October 1 of the year following the year of acquisition. A purchase completing in February 2026 must have the HBP withdrawal taken by October 1, 2027 at the latest.
Repayment schedule
HBP repayments are made by contributing to an RRSP and designating the contribution as an HBP repayment on Schedule 7 of the T1 return. Repayments do not count as new RRSP deductions; they are simply restoring the prior withdrawal. The first repayment is due in the second year following the withdrawal year.
Example: A $60,000 HBP withdrawal in 2026 must be repaid at $4,000 per year ($60,000 / 15 years) starting in the 2028 tax year. Failure to make the minimum repayment in any year results in the unpaid amount being added to that year’s taxable income.
HBP combined with the FHSA
The HBP and FHSA can be used together for the same first home purchase. A first-time buyer with both can combine $40,000 from FHSA (tax-deductible contributions, tax-free withdrawals, no repayment required) with $60,000 from RRSP HBP, for $100,000 toward a down payment from each partner. A couple where both have full FHSA and HBP entitlement can contribute $200,000 in total down payment from registered accounts.
Repayment failure consequences
Skipping or shortfalling a minimum HBP repayment in any year causes the missed amount to be added to taxable income that year. The skipped amount stays on the original repayment schedule (does not extend the 15-year period). Catching up repayments can stop further additions to taxable income but does not restore the lost prior-year deduction opportunity.
Special HBP rules for persons with disabilities
The HBP can be used to buy a home for a related person with a disability, even if the participant is not themselves a first-time home buyer. The disabled person must be a child, grandchild, sibling, or other related person of the participant or their spouse, must be eligible for the disability tax credit, and the home must be more accessible to or better suited to the disabled person’s needs.
HBP versus FHSA comparison
| Feature | HBP | FHSA |
|---|---|---|
| Maximum amount | $60,000 per person | $40,000 lifetime per person |
| Annual contribution | n/a (uses existing RRSP) | $8,000 per year |
| Tax deduction on contribution | Yes (RRSP deduction) | Yes (FHSA deduction) |
| Tax on withdrawal | Tax-free if rules met | Tax-free if rules met |
| Repayment required | Yes (15 years) | No |
| First-time buyer rule | Yes | Yes |
| Time limit on account | n/a | 15 years from opening |
Frequently asked questions
- What is the maximum 2026 HBP withdrawal?
- $60,000 per person. A couple of first-time buyers can each withdraw $60,000 ($120,000 combined).
- How long is the HBP repayment period?
- 15 years, starting the second year after the withdrawal year. Annual minimum is 1/15 of the withdrawn amount.
- Who qualifies as a first-time home buyer for HBP?
- A Canadian resident who has not occupied a qualifying home owned by themselves or a current spouse in the current calendar year or four preceding years.
- Can HBP and FHSA be combined?
- Yes. Maximum per person is $100,000 ($60,000 HBP + $40,000 FHSA) toward the same first home purchase.
- What if I miss an HBP repayment?
- The missed amount is added to that year's taxable income. The 15-year schedule does not extend; remaining repayments stay on track.
- Can I use HBP more than once?
- Yes, after fully repaying a prior HBP and meeting the first-time buyer rule again (no homeownership in current or four preceding years).
- What is the 90-day RRSP rule?
- Funds contributed within 90 days of an HBP withdrawal cannot be deducted on that year's tax return. Plan contributions ahead.