RRSP · First home · Explainer

How the RRSP Home Buyers' Plan Works

The Home Buyers' Plan (HBP) lets a first-time buyer withdraw from their RRSP to buy or build a home without immediate tax, as long as the amount is repaid to the RRSP over time.

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How it works

An eligible first-time buyer can withdraw up to a limit set by the government, per person, from their RRSP tax-free to buy or build a qualifying home. A couple buying together can each use their own limit. Confirm the current limit before relying on it, as it can change.

Repayment

The withdrawal is a loan from yourself and must be repaid to the RRSP over a set number of years, beginning the second year after the withdrawal. If a year's required repayment is not made, that amount is added to your taxable income for the year.

Eligibility

You must be a first-time buyer and a Canadian resident, and the funds must generally have been in the RRSP for a minimum period before withdrawal.

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Frequently asked questions

How much can I withdraw under the Home Buyers' Plan?

Up to a limit set by the government, per person, from your RRSP, tax-free, to buy or build a first home. A couple can each use their own limit. The current limit is published at canada.ca.

Do I have to repay the Home Buyers' Plan?

Yes. It is repaid to the RRSP over a set number of years, starting the second year after withdrawal. A missed annual repayment is added to your taxable income.

Who qualifies for the HBP?

First-time buyers who are Canadian residents. The funds must generally have been in the RRSP for a minimum period.

Can I use the HBP and the FHSA together?

Yes. Both can be used for the same first-home purchase, which increases the total amount available.

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This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.