By Josh Tagg, mortgage broker · Mortgages for Less with INDI Mortgage · Calgary, serving all of Alberta ·
For many Albertans, saving for a down payment can be one of the biggest challenges of buying a first home. The Home Buyers’ Plan (HBP) offers a practical solution by allowing you to use your own retirement savings—without immediate tax consequences—to help fund your purchase. With the recent increase to the withdrawal limit, first-time buyers can now access up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home.
Because I am a mortgage broker, I can help you understand how this program works and how to incorporate it effectively into your home financing strategy.
What is the Home Buyers’ Plan?
The HBP is a federal program that lets eligible Canadians withdraw from their RRSPs to buy or build a qualifying home for themselves—or for a related disabled person. You’ll have to repay the amount you withdraw over time, helping you gradually rebuild your retirement savings.
As of April 16, 2024, the withdrawal limit increased from $35,000 to $60,000 per person. For a couple, that means up to $120,000 could be available for a down payment.
The funds you withdraw aren’t subject to tax withholding, as long as you meet the repayment conditions.
Who qualifies for the Home Buyers’ Plan?
You may participate in the HBP if you:
- Are a Canadian resident at the time of withdrawal and until the home is bought or built
- Are considered a first-time home buyer (you haven’t owned a home you lived in for the last four years)
- Have a written agreement to buy or build a qualifying home in Canada
- Intend to live in that home as your principal residence within one year
There are exceptions for people helping a disabled relative or for individuals purchasing after a relationship breakdown.
How do you withdraw RRSP funds under the HBP?
To make a withdrawal under the HBP, you will need to complete Form T1036, Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP, and submit it to your RRSP issuer. They will process the withdrawal once they receive the completed form.
You can withdraw from multiple RRSPs as long as you’re the account holder of each one. The withdrawals must take place in the same calendar year or in January of the following year.
A mortgage broker can coordinate your RRSP withdrawal timing with your financing and home purchase deadlines to ensure your funds are ready when needed.
When do HBP repayments begin?
You have up to 15 years to repay what you withdrew under the HBP. Normally, your repayment period begins the second year after the year of your first withdrawal.
However, temporary repayment relief is available for withdrawals made between January 1, 2022, and December 31, 2025. For these cases, your 15-year repayment period is delayed by an additional three years—meaning repayments start the fifth year after your first withdrawal.
For example:
- If you withdrew funds in 2023, your first repayment year will be 2028.
- If you withdrew in 2025, your first repayment year will be 2030.
You may begin making repayments earlier if you wish. Early payments reduce your overall HBP balance and can lower future minimum repayment amounts.
| First withdrawal made | Repayment period starts | Example from this post |
|---|---|---|
| January 1, 2022 to December 31, 2025 (repayment relief) | Fifth year after your first withdrawal | Withdrew in 2023: first repayment year 2028. Withdrew in 2025: first repayment year 2030. |
| Outside the relief window | Second year after your first withdrawal | Up to 15 years to repay either way |
How do you repay your HBP withdrawal?
To repay your HBP balance, you can begin re-contributing to your RRSP, Pooled Registered Pension Plan (PRPP), or Specified Pension Plan (SPP) at anytime, but you MUST begin repaying by March 1st of the year after your repayment period begins. For example:
- If you withdrew your RRSP in 2025, you would need to begin repayment by March 1, 2030, and complete repayment by December 31, 2045
- If you withdrew your RRSP in 2026, you would need to begin repayment by December 31, 2028, and complete repayment by December 31, 2043.
The Canada Revenue Agency (CRA) will send you an annual HBP Statement of Account (usually with your Notice of Assessment) showing:
- Total repayments made
- Remaining balance
- Minimum required repayment for the next year
You can also access your balance anytime through CRA My Account or by calling the CRA.
What happens if you repay more or less than required?
Repaying more than required — If you pay more than your minimum annual amount, the excess reduces your HBP balance and lowers future minimum repayments.
Repaying less than required — If you pay less than your minimum annual amount, the difference will be added to your taxable income for that year. The same applies if you make no repayment at all.
Each year, you can calculate your required repayment by dividing your remaining balance by the number of years left in your repayment period.
Which special situations change how the HBP is repaid?
Certain situations can change how your HBP is handled:
Death of a participant — If an HBP participant dies, the remaining balance is usually added to their income for that year. However, if the deceased has a spouse or common-law partner who is a Canadian resident, that partner can elect to continue repayments.
Turning 71 — You cannot contribute to an RRSP after the year you turn 71. Before that year ends, you can:
- Repay the full HBP balance,
- Make a partial repayment, or
- Stop repayments and include the remaining balance as income annually until it’s cleared.
Becoming a non-resident — If you become a non-resident before buying or building your qualifying home, you must either:
- Cancel your HBP participation and repay the withdrawn funds by the required date, or
- Include the balance as income on your tax return.
Cancelling participation — If you don’t buy or build a qualifying home, or if you become a non-resident before doing so, you can cancel your participation. To cancel, repay the amount withdrawn to your RRSP by December 31 of the year after your withdrawal, and submit a cancellation letter to the CRA.
How do you report HBP repayments?
Each year, you must file an income tax and benefit return until your HBP is fully repaid or included in your income—even if you owe no tax.
Be sure to complete the proper paperwork and to keep all supporting documents for six years, in case the CRA requests them.
Why work with a mortgage broker when you use the HBP?
A mortgage broker can help you make the most of the HBP by:
- Explaining how HBP funds affect your down payment and mortgage qualification
- Ensuring your RRSP and mortgage timelines align
- Coordinating with your financial advisor or lender to manage repayments
- Combining the HBP with other programs like the First Home Savings Account (FHSA)
By working with a knowledgeable broker, Alberta buyers can avoid costly missteps and confidently use the Home Buyers’ Plan as part of a smart, long-term homeownership strategy.
How do you make the most of the Home Buyers’ Plan?
The HBP remains one of the most flexible and valuable tools for first-time home buyers in Alberta. With the new $60,000 withdrawal limit and optional repayment relief, it can significantly reduce the financial barriers to home ownership.
Before making your withdrawal, reach out to me (your local mortgage broker) and tax professional to ensure your timing, paperwork, and repayment plan are fully aligned with your financial goals.
How an Alberta mortgage broker helps you use your RRSP for a down payment
The HBP is a tax program, but the money has to work inside a mortgage file:
- Time your Form T1036 withdrawal so the funds are in hand before your lender’s deadline and your closing date.
- Show how HBP and FHSA money together change your down payment, and whether that moves you past 20% down.
- Document the RRSP funds the way lenders expect to see a down payment, so nothing stalls at approval.
- Get a pre-approval before you write an offer, so you know the price range your down payment supports.
- Shop multiple lenders, including when your bank has said no.
Planning to use your RRSP for your first home?
Find out what your down payment buys before you file the withdrawal.
Apply Online → Book a Discovery Call → Serving Calgary, Edmonton & all of Alberta · Mortgages for Less with INDI MortgageQuestions about the RRSP Home Buyers’ Plan
How much can you withdraw from your RRSP under the Home Buyers’ Plan?
Who qualifies as a first-time home buyer for the HBP?
How do you withdraw RRSP money for a home purchase?
When do you have to start repaying the Home Buyers’ Plan?
What happens if you miss an HBP repayment?
Can you cancel your HBP if you don’t buy a home?
Can you use the HBP and the First Home Savings Account together?
This article was written in October 2025; Home Buyers’ Plan rules, tax rules, interest rates and mortgage rules may have changed since then. Confirm your repayment schedule with the CRA or a tax professional. It is general information for Alberta homebuyers, not financial, mortgage, tax or legal advice. Rates, products and qualification rules vary by lender. Please speak with a licensed mortgage professional about your specific circumstances. Mortgages for Less with INDI Mortgage.
