The RRSP Home Buyers' Plan, Explained

If you've been saving in an RRSP, the Home Buyers' Plan (HBP) lets you tap it for your first home without paying tax on the withdrawal. You can take out up to $60,000 — or $120,000 as a couple — and repay it to your RRSP over 15 years. Here's exactly how it works, the repayment rules, and how to combine it with other programs.

Key takeaways

• You can withdraw up to $60,000 per person ($120,000 per couple) tax-free.
• The withdrawal is essentially an interest-free loan from your own RRSP.
• You repay it to your RRSP over 15 years, with payments starting after a grace period.
• Miss a repayment and that amount is added to your taxable income for the year.
• The HBP can be combined with the FHSA for a larger down payment.

What is the Home Buyers' Plan?

The Home Buyers' Plan lets first-time buyers withdraw money from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home — without that withdrawal being taxed. Normally, pulling money from an RRSP triggers tax; the HBP is a special exception designed to help you become a homeowner.

How much you can withdraw

Each eligible person can withdraw up to $60,000. If you're buying with a spouse or partner and you both qualify, you can each withdraw the maximum — up to $120,000 combined toward the same home.

The 90-day rule

Contributions generally must stay in your RRSP for at least 90 days before you withdraw them under the HBP, or the deduction can be denied. Plan your contributions early so the funds are eligible when you need them.

How repayment works

The HBP is best thought of as an interest-free loan from yourself. You repay the amount you withdrew back into your RRSP over 15 years. Each year you owe roughly 1/15th of the total. If you repay less than your required amount in a given year, the shortfall is added to your taxable income for that year.

Don't miss a payment

If you don't repay the required amount in a year, that portion is treated as taxable income. Set a reminder each year and designate your RRSP contribution as an HBP repayment when you file.

HBP vs the FHSA

The biggest difference: the FHSA money is yours to keep with nothing to repay, while the HBP must be paid back to your RRSP. Many first-time buyers use both.

Used together, a single buyer can access up to $100,000 toward a down payment. Compare all the options in our FHSA guide and the roundup of first-time home buyer programs in Canada.

Putting the HBP toward your home

HBP funds go straight toward your down payment, helping you reach 20% sooner to avoid CMHC insurance — or simply get into the market faster. For the complete journey, start with our first-time home buyer guide for Ontario.

Add cashback to your buying power

Beyond the Home Buyers' Plan, eligible HOMEH buyers receive the industry's highest Cashback Rebate. Estimate yours with the cashback calculator or map out your funds with the down payment calculator.