Home Buyers' Plan (HBP)
A federal program allowing first-time buyers to withdraw up to $60,000 from their RRSP tax-free toward a home purchase, repayable over 15 years.
The Home Buyers' Plan (HBP) lets first-time home buyers withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) tax-free to use toward the purchase or construction of a qualifying home. The withdrawal must be repaid to the RRSP over 15 years in minimum annual installments. Failure to repay in a given year causes that year's minimum to be added to your taxable income. The HBP limit rose from $35,000 to $60,000 in April 2024 per the 2024 federal budget. Couples can each withdraw $60,000, for a combined $120,000. The HBP can be combined with the FHSA.
Related Terms
A Canadian tax-advantaged account for first-time home buyers — up to $8,000 in annual contributions ($40,000 lifetime) with tax-deductible deposits and tax-free qualifying withdrawals.
The upfront portion of a home purchase paid from your own funds — minimum 5% on the first $500K, 10% on the portion above (up to $1.5M insured cap).
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