Quick Answer
Quick Answer
- 1. A qualifying first-time home buyer can withdraw up to $60,000 tax-free from their RRSP under the Home Buyers’ Plan (HBP).
- 2. A couple where both partners qualify can each withdraw $60,000, for a combined $120,000 toward the same home.
- 3. Funds must sit in the RRSP for at least 89 days before an HBP withdrawal remains fully tax-deductible.
- 4. The withdrawal must be repaid to an RRSP over 15 years, typically starting the second year after withdrawal.
- 5. The HBP can be combined with a First Home Savings Account (FHSA) withdrawal for the same qualifying home.
Why the RRSP Home Buyers’ Plan Still Matters in 2026
You spent years building up your RRSP for retirement. Now you’re looking at listings, and the down payment gap feels enormous. Should you touch that retirement money?
For most first-time buyers in Canada, the answer is: cautiously, yes. There is a program built exactly for this moment. The RRSP Home Buyers’ Plan (HBP) works like an interest-free loan from your future self. You withdraw money you have already saved, use it as a down payment, and pay it back to your RRSP over 15 years. No tax hit at withdrawal. No interest charges.
Canada’s 2026 housing rules give insured first-time buyers access to 30-year amortizations and an insured price cap of $1.5 million. Even so, the HBP typically unlocks the last piece of the down payment puzzle. Our First-Time Home Buyer overview covers the wider picture.
How Much You Can Withdraw From Your RRSP
The $60,000 limit is per person, not per household. The Canada Revenue Agency (CRA) raised it from $35,000 on April 16, 2024.
The HBP does not have to stand alone. You can pair it with a First Home Savings Account (FHSA), a separate registered account with its own $40,000 lifetime contribution limit. FHSA withdrawals for a qualifying home are tax-free and require no repayment. Stacking the two accounts can potentially unlock up to $100,000 per person, or $200,000 per couple, from registered savings.
| Program | Individual max | Couple max | Repayment required | Contributions deductible |
|---|---|---|---|---|
| Home Buyers’ Plan (HBP) — RRSP | $60,000 | $120,000 | Yes — 1/15 per year over 15 years | Yes (original RRSP contribution) |
| First Home Savings Account (FHSA) | $40,000 | $80,000 | No | Yes |
| HBP + FHSA combined | $100,000 | $200,000 | Partial — HBP portion only | Yes |
Whether those numbers cover your full down payment depends heavily on where you’re buying. In Vancouver or Toronto, $60,000 is meaningful but rarely gets a first-time buyer to 20% down. In Calgary, Ottawa, or Halifax, the same $60,000 can carry most or all of the way. Our FHSA vs RRSP: How to Build Your Down Payment guide walks through which account to prioritize.
Quick Start: Pick Your Path
Your best HBP strategy depends on which registered accounts you already have. Here’s a quick decision tree by starting profile.
FHSA-focused saver
Focus on the FHSA first. Withdrawals are tax-free with no repayment obligation. Only tap the RRSP once you’ve maxed the FHSA and still need more toward the down payment.
RRSP-focused saver
The HBP is likely your biggest lever. Confirm you meet the first-time buyer rule, check that funds have been in the account for at least 89 days, and file Form T1036 with your issuer.
Both accounts funded
Stack them. Use the FHSA first (no repayment obligation), then use the HBP for anything additional you need to reach your target down payment.
Run the numbers through our Down Payment Calculator before making any withdrawal decisions.
Who Qualifies as a First-Time Home Buyer
The four-year lookback catches people off guard. If you sold a home three years ago and have rented since, you are not yet eligible until the fifth full calendar year of not owning.
A common surprise: your current spouse’s or common-law partner’s ownership history counts against you, even if the title was never in your name. If they owned a home you lived in during the lookback window, neither of you can use the HBP for this purchase.
You can potentially use the HBP again if you have fully repaid a previous balance and meet the four-year rule at the new withdrawal date. You must also remain a Canadian resident throughout the HBP period.
The 89-Day Rule and Other Timing Traps
RRSP contributions made within 89 days of an HBP withdrawal may not be fully tax-deductible. If you contribute $30,000 to your RRSP in March and try to withdraw it in April for the HBP, the CRA will typically deny some or all of the deduction. Most brokers recommend contributing at least 90 days ahead, often six months to be safe.
- ▸Your withdrawal window is narrow. You can make multiple HBP withdrawals, but only in the same calendar year as your first withdrawal and in January of the following year.
- ▸You must acquire the home by October 1 of the year following your first withdrawal.
Coordinating these dates with a closing date, financing conditions, and appraisal timelines is genuinely tricky. Razi Khan, Founder and Mortgage Broker at Pegasus works through this sequence with clients every week.
Step-by-Step: Withdrawing From Your RRSP for a Home Purchase
Here’s the standard sequence for using the HBP toward your first home.
- 1Confirm your eligibility.Sign into CRA My Account to verify your RRSP deduction room and confirm you have not owned a qualifying home in the current or previous four calendar years.
- 2Get funds into the RRSP early.Any contribution intended for HBP withdrawal must sit in the RRSP for at least 89 days. Aim for 90-plus days, ideally longer.
- 3Secure a purchase agreement.You need a written, binding agreement to purchase or build a qualifying home before the withdrawal.
- 4File Form T1036.Complete the CRA Home Buyers’ Plan withdrawal form and submit it to your RRSP issuer, whether that is your bank, credit union, or brokerage.
- 5Receive the funds.Your issuer pays out without withholding tax as long as the form is properly filed.
- 6Close by October 1 of the following year.Miss this deadline and the withdrawal typically becomes taxable income.
- 7Track repayments on Schedule 7.When you file your annual tax return, designate a portion of your RRSP contributions as HBP repayment.
A mortgage pre-approval can help you sequence everything cleanly. Start with an Instant Pre-Approval Certificate.
Repaying Your HBP: The 15-Year Schedule
Every dollar you withdraw under the HBP must go back into an RRSP over 15 years. The minimum annual repayment is 1/15 of your withdrawal. On a $60,000 withdrawal, that’s $4,000 per year.
Repayments do not create a new RRSP deduction. You are paying back money you already deducted when you originally contributed.
If you miss a minimum repayment, the missed amount is added to your taxable income for that year and taxed at your marginal rate. The missed amount does not extend your 15-year schedule.
Watch this timing wrinkle carefully. The federal government temporarily extended the grace period before repayments start. Withdrawals made between January 1, 2022 and December 31, 2025 have five years before repayments begin. Withdrawals from January 1, 2026 onward revert to the standard two-year grace period. A withdrawal on December 30, 2025 gets three more grace years than a withdrawal on January 15, 2026.
| Withdrawal | Min annual repayment | % of median household income | Consequence if missed |
|---|---|---|---|
| $20,000 Individual | $1,333 / year | ~1.7% | If fully missed, $1,333 added to taxable income for that year |
| $30,000 Individual | $2,000 / year | ~2.5% | If fully missed, $2,000 added to taxable income for that year |
| $40,000 Individual | $2,667 / year | ~3.3% | If fully missed, $2,667 added to taxable income for that year |
| $50,000 Individual | $3,333 / year | ~4.2% | If fully missed, $3,333 added to taxable income for that year |
| $60,000 Individual — maximum | $4,000 / year | ~5.0% | If fully missed, $4,000 added to taxable income for that year |
| $80,000 Couple combined | $5,333 / year | ~6.7% | If fully missed, $5,333 added to taxable income for that year |
| $100,000 Couple combined | $6,667 / year | ~8.3% | If fully missed, $6,667 added to taxable income for that year |
| $120,000 Couple combined — maximum | $8,000 / year | ~10.0% | If fully missed, $8,000 added to taxable income for that year |
Common Mistakes to Avoid
A few common HBP missteps can quietly cost you thousands.
- ▸Contributing inside the 89-day window. The CRA may disallow the deduction on any RRSP contribution made too close to your HBP withdrawal date.
- ▸Missing your spouse’s ownership history. Your partner’s ownership record can disqualify you even if the title was never in your name.
- ▸Blowing the October 1 acquisition deadline. If you withdraw but don’t complete the home purchase in time, the withdrawal is typically added to your taxable income.
- ▸Forgetting the first repayment year. Repayments start the second year after withdrawal, or the fifth year for 2022 to 2025 withdrawals. Note it in your calendar.
- ▸Designating your whole RRSP contribution as HBP repayment. You can split contributions between HBP repayment and new deductible contributions. Maximize the deductible portion in high-income years.
- ▸Providing false information on Form T1036. The CRA takes false statements seriously, and penalties can apply.
Frequently Asked Questions
How much can I withdraw from my RRSP for a house in Canada?
Can my spouse and I each withdraw $60,000 from the HBP?
How long does the money need to sit in my RRSP before I can withdraw for the HBP?
What happens if I do not repay my RRSP Home Buyers Plan on time?
Can I use the RRSP HBP and the FHSA together for the same home?
Do I have to be a first-time home buyer to use the HBP?
When do I have to buy the home after I withdraw from my RRSP?
Can I use my spouse’s RRSP or a spousal RRSP for the HBP?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- ▸Canada Revenue Agency — The Home Buyers’ Plan. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
- ▸Canada Revenue Agency — How to withdraw funds under the HBP. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/withdraw-funds-rrsp-s-under-home-buyers-plan.html
- ▸Canada Revenue Agency — How to repay HBP withdrawals. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/repay-funds-withdrawn-rrsp-s-under-home-buyers-plan.html
- ▸Canada Revenue Agency — How to avoid common HBP mistakes. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/avoid-common-home-buyers-plan-mistakes.html
- ▸Canada Revenue Agency — First Home Savings Account. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
- ▸Department of Finance Canada — Budget 2024. https://budget.canada.ca/2024/report-rapport/toc-tdm-en.html