What Is the Home Buyers' Plan (HBP) in Canada?

Saving a down payment is the single biggest hurdle for most first-time buyers in Canada. The Home Buyers' Plan (HBP) is a federal program that lets you borrow from your own RRSP — money you have already saved and sheltered from tax — to fund a home purchase without triggering an immediate tax bill. It is one of the most widely used tools in a first-time buyer's toolkit.

The short answer

The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP (as of the 2024 federal budget) tax-free to buy or build a qualifying first home. You have 15 years to repay the amount back into your RRSP, starting 2 years after the year of withdrawal.

Who qualifies

To use the HBP you must be a first-time home buyer — defined by the CRA as someone who has not owned and occupied a principal residence in the four years before the withdrawal. There is an exception for individuals with a disability and those buying for a disabled person. You must also have a written agreement to buy or build a qualifying home before you can make the withdrawal.

How much you can withdraw

As of the 2024 federal budget, the limit increased from $35,000 to $60,000 per person. If you are buying with a partner who also qualifies, each of you can withdraw up to $60,000 — a combined $120,000 from your RRSPs. The funds must have been in your RRSP for at least 90 days before the withdrawal, or they are not deductible.

Repayment rules

You repay the withdrawn amount back to your RRSP over 15 years, beginning in the second year after the calendar year of withdrawal. Each year the CRA calculates your minimum repayment (total withdrawn ÷ 15). If you contribute less than the minimum in a given year, the shortfall is added to your income for that year and taxed. You can always repay more than the minimum to reduce the taxable income risk.

HBP vs. FHSA

The First Home Savings Account (FHSA), introduced in 2023, is a newer alternative that may be better for many buyers: contributions are tax-deductible, growth is tax-free, and withdrawals for a qualifying home are tax-free — with no repayment obligation. If you have not bought yet, opening an FHSA and contributing while you save may serve you better than relying solely on the HBP. You can also use both together. See FHSA explained and FHSA vs. Home Buyers' Plan — which is better.

Frequently asked questions

Can I use the HBP and FHSA for the same purchase?

Yes. As of 2023 you can combine an HBP withdrawal with an FHSA withdrawal for the same qualifying home purchase, effectively stacking the two programs.

What happens if I don't repay the minimum each year?

The shortfall is added to your income for that tax year and taxed at your marginal rate. Over 15 years, missing repayments significantly erodes the tax benefit of the original withdrawal.

Does the RRSP need to be at the same institution as my mortgage?

No. You can withdraw from any RRSP account you hold and use the funds with any lender. Your mortgage broker can walk you through the paperwork at your institution.