The Home Buyers’ Plan (HBP) is a federal program letting first-time home buyers withdraw up to $60,000 per person from RRSPs without paying tax at withdrawal. The withdrawal funds a qualifying home purchase and must be repaid into an RRSP over 15 years, beginning the second year after withdrawal.
Eligibility
Participants must be Canadian residents, first-time home buyers (no qualifying home owned by themselves or a spouse in the current calendar year or four preceding years), have a written agreement to buy or build a qualifying home, and intend to occupy the home as a principal residence within one year.
Repayment
Annual minimum repayment is 1/15 of the withdrawn amount. Repayments are made by contributing to an RRSP and designating the contribution as an HBP repayment on Schedule 7. Skipped repayments are added to taxable income for that year.
Combining with FHSA
HBP can be combined with the FHSA for the same first home. Combined per person: $60,000 (HBP) + $40,000 (FHSA) = $100,000 toward a down payment. A couple where both partners qualify can contribute $200,000 total.