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RRSP Home Buyers’ Plan

Plan your RRSP withdrawal for a first home and model the 15-year repayment schedule under the 2025 rules.

Inputs

CAD (max $60,000)
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2025 HBP limit: $60,000 per person ($120,000 for couples). Repayments start 2 years after the year of withdrawal and must be made over 15 years. Each missed annual repayment is added to your taxable income for that year. The withdrawal is not taxed if repaid; the cost of non-repayment is tax at your marginal rate on the shortfall each year.

Annual Repayment Required

Per-year RRSP repayment
$0

How the Home Buyers’ Plan works

The RRSP Home Buyers’ Plan allows first-time home buyers to withdraw up to $60,000 from their RRSP (or $120,000 for a couple) tax-free to buy or build a qualifying home. The 2025 limit was increased from the previous $35,000 limit as part of housing affordability measures.

Repayments must start in the second calendar year after the year of withdrawal. For example, if you withdraw in 2025, repayments start in 2027. You have 15 years to repay the full amount in equal minimum annual installments. Any shortfall in a given year is added to your taxable income — effectively, you pay tax at your marginal rate on the amount you fail to repay.

The HBP can be used alongside the FHSA, giving first-time buyers access to both accounts. The FHSA is generally preferable since it requires no repayment, but the RRSP HBP provides access to larger accumulated savings.

FAQ

What is the 2025 HBP withdrawal limit?
$60,000 per person, or $120,000 for a couple purchasing together. This was increased from $35,000 in Budget 2024, effective for withdrawals made after April 16, 2024.
What happens if I miss a repayment?
The annual repayment amount you fail to contribute is added to your taxable income that year and taxed at your marginal rate. There is no other penalty, but the tax cost can be significant — at a 40% marginal rate, missing a $4,000 annual repayment costs $1,600 in extra tax.
Can I use the HBP more than once?
Yes — if you have repaid your previous HBP balance in full and meet the first-time home buyer definition again (you have not lived in a home you or your spouse owned in the past four years), you may use the HBP again.
Does the RRSP need to be seasoned?
Yes — funds must have been in the RRSP for at least 90 days before withdrawal. Contributions made within 90 days of withdrawal cannot be used for the HBP and will not be deductible for the year of contribution if the HBP withdrawal is made within that window.