If you’ve been diligently saving for retirement through your RRSP, good news—those funds can also help you purchase your first home. Canada’s Home Buyers’ Plan (HBP) lets you borrow from your Registered Retirement Savings Plan (RRSP) to boost your down payment, tax-free.
Whether you’re buying a home on your own or with a partner, the HBP can provide a serious financial lift when you’re ready to enter the real estate market.
What Is the Home Buyers’ Plan?
The HBP allows first-time homebuyers to withdraw funds from their RRSP—without paying income tax—to use toward the purchase of a qualifying home.
- As of 2024, the maximum withdrawal limit is $60,000 (up from $35,000)
- Each individual buyer can use their own RRSP, so couples can combine up to $120,000
- You must repay the amount to your RRSP over a 15-year period
Who Can Use the HBP?
- You must be a first-time homebuyer (no home ownership in the last 4 years)
- You must have a written agreement to buy or build a qualifying home
- You must intend to live in the home as your principal residence within one year of purchase
How Does Repayment Work?
Repayments start the second year after your withdrawal. Each year, you’ll contribute 1/15 of the total withdrawn amount back into your RRSP.
If you miss a repayment for any given year, that amount will be added to your taxable income.
Can HBP Be Combined With Other Programs?
Yes! You can use the HBP alongside other federal incentives like:
- First Home Savings Account (FHSA): Up to $40,000 in tax-deductible, tax-free savings
- First-Time Home Buyers’ Tax Credit: Receive up to $1,500 in non-refundable tax relief
Why Use the HBP?
Using your RRSP under the HBP can supercharge your home buying budget without affecting your taxable income in the year of withdrawal. Plus, you’re essentially borrowing from yourself—interest-free.
When used strategically with other tools like the FHSA, the HBP can significantly reduce your need for high-interest debt or mortgage insurance premiums.
