Quick answer: The 2026 Home Buyers’ Plan (HBP) withdrawal limit is $60,000 per first-time home buyer from your RRSP, tax-free. A couple where both partners qualify can each withdraw $60,000 for a combined $120,000. Withdrawals must be repaid into RRSPs over 15 years, starting the second year after withdrawal. HBP withdrawals between January 1, 2022 and December 31, 2025 received a temporary 5-year grace period (per Budget 2024) instead of the usual 2-year grace.
What this means: The $60,000 cap has applied since April 16, 2024 (up from $35,000). To withdraw, RRSP funds must be in the plan at least 90 days. Form T1036 is filed with the financial institution; no withholding tax applies. A $60,000 withdrawal repays at $4,000/year over 15 years; missed annual repayments are added to that year’s taxable income.
What to do next: Compare HBP with the FHSA for your first home. FHSA vs HBP comparison →
2026 HBP withdrawal limit: $60,000
| HBP rule (2026) | Limit or amount |
|---|---|
| Maximum withdrawal per individual | $60,000 (applies to HBP withdrawals after April 16, 2024) |
| Maximum combined for a qualifying couple (both first-time buyers) | $120,000 |
| Repayment period | 15 years |
| First repayment due (standard rule) | Second year after the year of withdrawal |
| First repayment due (temporary deferral, withdrawals Jan 1, 2022 – Dec 31, 2025) | Fifth year after the year of withdrawal (Budget 2024) |
| Annual minimum repayment | 1/15 of the withdrawn amount |
| RRSP holding rule | Funds must be in the RRSP at least 90 days before withdrawal |
| Home acquisition deadline after withdrawal | Home must be acquired (or built) before October 1 of the year following the year of withdrawal |
| First-time home buyer rule | 4-year non-ownership lookback (current year + 4 preceding calendar years) |
The $60,000 limit applies per HBP cycle, not per lifetime. A homeowner who fully repaid a previous HBP can use the program again for a subsequent first home purchase, provided they meet the 4-year first-time buyer rule at the time of the new withdrawal.
2026 HBP eligibility
To withdraw under the HBP you must meet all of:
- Canadian resident at the time of withdrawal and until the date the home is bought or built.
- First-time home buyer — in the calendar year of withdrawal and the 4 preceding calendar years, you did not occupy a qualifying home that you or your current spouse / common-law partner owned. Previously owning a home and losing it (e.g., divorce, foreclosure) does not disqualify you once you’ve been a non-owner for 4 calendar years.
- Written agreement to buy or build a qualifying home in Canada before October 1 of the year after withdrawal.
- Principal residence intent — you must intend to occupy the home as your principal residence within one year of acquisition or completion of construction.
- RRSP holding rule — the funds being withdrawn must have been in the RRSP for at least 90 days.
How to make an HBP withdrawal
- Confirm eligibility and that 90 days have passed since the RRSP contribution.
- Complete Form T1036, Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP.
- Submit T1036 to your RRSP issuer (financial institution).
- Receive the withdrawal — the issuer pays out the funds without withholding tax, provided the form is filed and the rules are met.
- Keep records. Your T4RSP for the year shows the HBP amount in box 27, separate from regular RRSP withdrawals.
The buyer must acquire (close on) or have completed building the qualifying home before October 1 of the year following the year of withdrawal. For example, a withdrawal in November 2026 requires the home to be acquired or build-completed before October 1, 2027.
Repayment: 15 years, 1/15 per year
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.
Standard schedule. The first repayment is due in the second year following the year of withdrawal.
| Year of withdrawal | First repayment year | Annual repayment ($60,000 / 15) |
|---|---|---|
| 2026 | 2028 | $4,000 |
Failure to make the minimum repayment in any year results in the unpaid amount being added to that year’s taxable income on line 12900 of the T1 (RRSP income). The remaining repayment schedule continues unchanged — missing a year does not extend the 15-year period.
Temporary 5-year grace period (Budget 2024)
The federal Budget 2024 introduced a temporary 3-year extension to the standard 2-year grace period for HBP withdrawals made between January 1, 2022 and December 31, 2025. Under this temporary rule, the first repayment is due in the fifth year after the year of withdrawal (instead of the second year).
| Year of withdrawal | Standard first repayment year | Temporary first repayment year (Budget 2024) |
|---|---|---|
| 2022 | 2024 | 2027 |
| 2023 | 2025 | 2028 |
| 2024 | 2026 | 2029 |
| 2025 | 2027 | 2030 |
| 2026 (no extension) | 2028 | 2028 |
The 15-year repayment period itself is unchanged; only the starting year is deferred. For an HBP withdrawal in 2024, the temporary deferral pushes the first repayment from 2026 to 2029. The repayment amount is still 1/15 of the withdrawn amount per year.
HBP versus FHSA: feature comparison
| Feature | HBP | FHSA |
|---|---|---|
| Maximum amount | $60,000 per person, per HBP cycle | $40,000 lifetime per person |
| Annual contribution | n/a (uses existing RRSP) | $8,000 per year (participation room) |
| Tax deduction on contribution | Yes (RRSP deduction) | Yes (FHSA deduction) |
| Tax on qualifying first-home withdrawal | Tax-free if rules met | Tax-free if rules met |
| Repayment required | Yes — 15 years | No |
| First-time home buyer rule | Yes (4-year lookback) | Yes (4-year lookback) |
| Time limit on account | n/a (uses RRSP) | 15 years from opening (also closes at 71 or year after first qualifying withdrawal) |
| Withholding tax on withdrawal | None (with T1036) | None (with FHSA withdrawal form) |
You can combine HBP and FHSA on the same first-home purchase: up to $60,000 HBP + $40,000 FHSA = $100,000 per buyer, or $200,000 per couple if both partners are first-time buyers and both have full FHSA and HBP entitlement. See FHSA vs HBP comparison for the decision logic, and FHSA contribution limits 2026 for FHSA mechanics.
Worked example: $60,000 HBP withdrawal in 2026
Mei has $80,000 in her RRSP and intends to buy her first home in spring 2027. She withdraws $60,000 under the HBP in November 2026.
- Form T1036 filed with her financial institution before withdrawal.
- Cash received: $60,000 (no withholding tax).
- RRSP balance after withdrawal: $20,000 (plus any growth in the year).
- Home acquisition deadline: home must be acquired or build-completed before October 1, 2027 (year after the 2026 withdrawal year).
- First repayment due: 2028 tax year (the second year after 2026 — standard rule; the temporary deferral does NOT apply to 2026 withdrawals).
- Annual minimum repayment: $60,000 / 15 = $4,000.
- Total repayment over 15 years: 15 × $4,000 = $60,000 (the original withdrawal). The repayments are not redeductible.
If Mei contributes $4,000 to her RRSP in early 2029 and designates it on Schedule 7 as the 2028 HBP repayment, the $4,000 cannot also be deducted as a regular RRSP deduction. If she contributes only $2,000 designated as the 2028 HBP repayment, the missing $2,000 is added to her 2028 taxable income on line 12900.
Special rule: HBP for a related person with a disability
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 / common-law partner.
- Be eligible for the Disability Tax Credit (DTC) — see DTC amount 2026.
- The home must be more accessible to or better suited to the disabled person’s needs.
Common mistakes
- Withdrawing before the 90-day RRSP holding rule. Contributions deposited fewer than 90 days before withdrawal are not eligible — they would be taxable RRSP withdrawals subject to withholding.
- Missing the October 1 acquisition deadline. The qualifying home must be acquired (or build completed) before October 1 of the year following the year of withdrawal. If not, CRA can require the withdrawal to be repaid in full or added to taxable income.
- Forgetting the 1/15 annual repayment. Missed minimum repayments are automatically added to taxable income that year and the remaining schedule continues unchanged. There is no extension.
- Double-claiming HBP repayments as RRSP deductions. Each contribution designated as an HBP repayment on Schedule 7 cannot also be deducted as a regular RRSP contribution.
- Confusing the 2-year and 5-year grace periods. The 5-year deferral applies only to HBP withdrawals made between Jan 1, 2022 and Dec 31, 2025. Withdrawals in 2026 and later are on the standard 2-year start.
- Treating HBP and FHSA as alternatives only. They are combinable on the same purchase, often the most powerful first-home strategy.
Frequently asked questions
What is the HBP withdrawal limit in 2026?
$60,000 per first-time home buyer (up to $120,000 for a qualifying couple). The $60,000 limit applies to HBP withdrawals after April 16, 2024.
When must I repay the HBP?
For HBP withdrawals in 2026, the first repayment is due in the 2028 tax year (standard 2-year grace). For withdrawals between Jan 1, 2022 and Dec 31, 2025, the temporary 5-year grace under Budget 2024 applies. Repayments span 15 years at 1/15 of the withdrawn amount per year.
Can I combine HBP and FHSA?
Yes. Up to $60,000 HBP + $40,000 FHSA = $100,000 per first-time buyer, or $200,000 per couple if both qualify.
Do I have to be a first-time home buyer to use the HBP?
Yes — with two exceptions: (1) you qualify again after a 4-calendar-year non-ownership lookback; (2) you are buying a home for a related person with a disability.
Is there withholding tax on an HBP withdrawal?
No, provided Form T1036 is filed with the institution before withdrawal and all HBP rules are met.