The RRSP Home Buyers’ Plan (HBP), Explained

The Home Buyers’ Plan lets you pull money out of your RRSP tax-free to buy or build your first home. As of 2024 the limit is $60,000 per person, and stacked with the FHSA it’s the biggest legal down payment boost a first-time buyer in Alberta has.

Quick answer: The RRSP Home Buyers’ Plan (HBP) lets an eligible first-time buyer withdraw up to $60,000 from their RRSP tax-free toward a qualifying home (up from $35,000 before the 2024 increase). A couple can take $120,000 combined. It’s a loan from yourself: you repay it into your RRSP over 15 years, starting the second year after you withdraw. Funds must have been in the RRSP at least 90 days before withdrawal to count.

$60,000

max HBP withdrawal per person

$120,000

per couple, combined

15 yrs

to repay, tax-free

90 days

funds must sit in RRSP first

How the HBP works

You withdraw from your RRSP, the money comes out with no tax withheld, and you put it toward the down payment or closing costs on a qualifying home. It isn’t free money. You’re borrowing from your own retirement savings and you have to pay it back into your RRSP over the next 15 years. Miss a year’s repayment and that portion gets added to your taxable income for the year, so it’s worth staying on schedule.

The withdrawal limit is $60,000 per eligible person, raised from $35,000 for withdrawals made after April 16, 2024. If you’re buying with a partner and you both qualify and both have RRSPs, you can each take up to $60,000, for $120,000 toward the same home.

The 90-day rule

Contributions have to be in your RRSP for at least 90 days before you withdraw them under the HBP. If you contribute a lump sum and then pull it right back out for the down payment, that portion may not be deductible. So if you’re planning to make a fresh RRSP contribution specifically to fund the HBP, do it at least 90 days before you need the money. This is the piece people trip on when they leave it to the last minute.

Who counts as a “first-time” buyer

You qualify if you did not own a home that you lived in as your principal residence in the current year or the previous four calendar years. Same test applies to a spouse or common-law partner’s home if you lived in it. That four-year clock means people who owned before can requalify. There are also exceptions that let you use the HBP even if you’re not a first-timer, such as buying a home for a related person with a disability.

You also need a written agreement to buy or build a qualifying home in Canada, you must be a Canadian resident when you withdraw and up to when you buy, and you have to intend to live in it as your principal residence within a year of buying or building. You fill out Form T1036 and give it to the institution holding your RRSP.

Repaying the HBP

Repayment starts the second year after the year you withdrew. So if you withdraw in 2026, your first required repayment is for the 2028 tax year. You repay at least 1/15th of the balance each year by contributing to your RRSP and designating it as an HBP repayment on your tax return. Pay more in a given year and it reduces your remaining balance and future minimums. Pay less than the minimum and the shortfall is added to your income and taxed.

Stacking the HBP with the FHSA

The First Home Savings Account (FHSA) is the newer account, and the two work together. You can contribute up to $8,000 a year to an FHSA, to a $40,000 lifetime max, and unlike the HBP, FHSA withdrawals for a qualifying home never have to be paid back. Contributions are tax-deductible like an RRSP, and the growth and withdrawal are tax-free like a TFSA. You’re allowed to use both the HBP and the FHSA on the same purchase.

HBP vs. FHSA at a glance

	HBP (RRSP)	FHSA
Max toward a home	$60,000 per person	$40,000 lifetime ($8,000/yr)
Repay it?	Yes, over 15 years	No repayment
Tax on withdrawal	Tax-free if rules met	Tax-free for a home
Contribution deductible?	Yes (into the RRSP)	Yes
Use both together?	Yes. A single buyer could put up to $100,000 toward one home.

How a Calgary mortgage broker helps

We time the 90-day rule around your closing so the withdrawal actually counts.
We show you how the HBP and FHSA change your real down payment and what price that supports.
We keep your down payment “provable” for the lender so the RRSP withdrawal doesn’t hold up your approval.
It’s free, with no credit hit to start and no obligation.

Mortgage Application

Put your RRSP to work on your first home

2-minute form
No credit check to start
Bank-level encryption
No obligation

Frequently asked questions

How much can I withdraw from my RRSP under the Home Buyers’ Plan?

Up to $60,000 per eligible person, raised from $35,000 for withdrawals made after April 16, 2024. If you buy with a partner who also qualifies and has an RRSP, you can each withdraw up to $60,000, for a combined $120,000 toward the same home.

Do I have to pay the HBP back?

Yes. The HBP is an interest-free loan from your own RRSP. You repay at least 1/15th of the balance each year over 15 years, starting the second year after you withdraw. If you repay less than the minimum in a year, the shortfall is added to your taxable income for that year.

What is the 90-day rule?

RRSP contributions must be in the account for at least 90 days before you withdraw them under the HBP. If you contribute and then pull the same money out sooner, that portion may not be tax-deductible. If you’re contributing specifically to fund the HBP, do it at least 90 days before you need the funds.

Who counts as a first-time home buyer for the HBP?

You qualify if you did not live in a home you owned as your principal residence in the current year or the previous four calendar years, and the same test applies to a spouse or common-law partner’s home. Because of the four-year window, previous owners can requalify. Certain exceptions also allow non-first-timers to use the HBP, such as buying for a related person with a disability.

Can I use the HBP and the FHSA together?

Yes. You can use both on the same purchase. The FHSA lets you contribute up to $8,000 a year to a $40,000 lifetime max, with no repayment required, while the HBP adds up to $60,000 from your RRSP that you repay over 15 years. A single buyer could put up to $100,000 toward one home by combining them.

When do I have to start repaying the HBP?

Repayment begins the second year after the year of your withdrawal. If you withdraw in 2026, your first required repayment is for the 2028 tax year. You make an RRSP contribution and designate it as an HBP repayment on your return; each year’s minimum is 1/15th of your outstanding balance.

Ready to turn RRSP savings into a down payment?

Let’s map your HBP and FHSA to a real purchase price and get you pre-approved.

Apply online Book a discovery call

Free · No credit check to start · No obligation

This article is general information, not financial, mortgage or legal advice. Rates, programs and rules change and depend on approval. Please speak with a licensed mortgage professional about your situation. Mortgages for Less with INDI Mortgage.