The HBP lets first-time buyers pull from their own RRSP, tax-free, to help fund a down payment — as long as it's repaid on schedule. Here's how the withdrawal, eligibility and repayment rules actually work.
The Home Buyers' Plan (HBP) lets a first-time buyer withdraw up to $60,000 from their RRSP, tax-free, to put toward a qualifying home purchase. Unlike a normal RRSP withdrawal, no tax is withheld and it isn't added to your income for the year — as long as you follow the repayment schedule.
Repayment: you have to repay the withdrawn amount back into your RRSP over 15 years, starting the second calendar year after the year you withdrew the funds. Each year, roughly 1/15th of the total is due; miss a payment and that year's required amount is added to your taxable income instead.
You need to meet the first-time buyer definition (generally, you and your spouse/common-law partner haven't owned and lived in a home in the current year or the preceding four years), have a signed agreement to buy or build the qualifying home, and the RRSP funds you withdraw generally need to have been in the account for at least 90 days before withdrawal.
Combining with the FHSA: the HBP and the FHSA aren't mutually exclusive — a first-time buyer can use both toward the same home purchase, which can substantially increase the funds available for a down payment without dipping into non-registered savings.
This page is general information, not tax or financial advice. HBP rules, limits and repayment schedules can change — always confirm your specific situation with an accountant or financial advisor before you withdraw.
Amir works alongside a network of mortgage specialists who can map out how an RRSP withdrawal, an FHSA, and your savings all fit into a single purchase timeline.