HBP withdrawal
HBP – Home Buyers' Plan
An HBP (Home Buyers’ Plan) allows you to withdraw money from your RRSP (Registered Retirement Savings Plan) to buy your first home. Under the HBP:
- You can withdraw a portion or all of your RRSP to buy a property.
- You would not pay income tax if you withdraw. However, you’ll have to put the money back into your RRSP in the following years.
- When you “pay back” into your RRSP, you won’t receive a tax deduction.
What is the maximum amount that can be withdrawn?
- You can’t withdraw more than $60,000. However, you can withdraw less.
- If you and your spouse together buy a home, you may each withdraw $60,000.
Qualifying homes
Most types of homes are eligible. For example:
- A single-family home
- A mobile home
- A condo or a semi-detached home
It could be an existing building or a new construction.
Can the HBP be used to buy something other than a first home?
Yes and no. To use the HBP, you must be the buyer of a first home that you plan to occupy. Nonetheless, you can use the HBP money as you please, whether or not it’s for your home.
How does the repayment work?
Each year, you’ll be required to pay back into your RRSP at least 1/15 of the amount withdrawn under the HBP. There is however a delay before the first repayment has to be made.
First HBP repayment
To start making HBP repayments, you'll be able to benefit from a delay. Your repayment period does not start in the year you withdrew funds from an RRSP for the HBP. The first payment can be made according to the timeline opposite.
For example, if you drew on an HBP before January 1 2022, your repayment period started no later than 2 years and 61 days afterwards.
A temporary repayment relief was introduced in 2024 to defer the start of the 15-year repayment period by an additional three years for participants. If you withdraw between January 1, 2022, and December 31, 2025, you must make your first HBP repayment no later than 5 years and 61 days later.
You won’t receive any tax deductions on the repayments.
Year 0 | |
Year 1 | |
Year 2 | |
60 days later |
Insight
Do you have questions about the HBP?
Check the relevant sections of the Canada Revenue Agency website, including:
- What is the Home Buyers’ Plan (HBP)?
This link will open in a new window - How to participate in the Home Buyers’ Plan (HBP) This link will open in a new window
Documentation and tools
Guide to Financial Planning for Retirement This link will open in a new window