The RRSP Home Buyers' Plan Is Now $60,000: How to Withdraw, Repay, and Stack It with the FHSA

The Home Buyers’ Plan lets you withdraw money from your own RRSP tax-free to buy a first home — essentially borrowing from your retirement account for a down payment and repaying it over time. The appeal: your RRSP contributions were already tax-deductible, and pulling them out for a down payment doesn’t trigger income tax in that year.

As of 2024, the per-person limit rose from $35,000 to $60,000, so a couple can access up to $120,000. (Source: Canada.ca)

Eligibility — Who Counts as a First-Time Buyer

For the HBP, you’re a first-time buyer if you did not live in a home owned by you or your spouse/common-law partner in the current calendar year or the four preceding years. You must also be a Canadian resident and occupy the home as your principal residence within one year of buying.

Repayment — The 15-Year Rule

The withdrawal must be repaid to your RRSP over 15 years, normally beginning the second year after your first withdrawal — but if that first withdrawal falls between 2022 and 2028, a temporary rule pushes the start to the fifth year (CRA). The minimum annual repayment is roughly 1/15 of the amount withdrawn.

Example: make a first withdrawal of $60,000 in 2026, and under the temporary deferral your first repayment year is 2031 (it would have been 2028 without it); from then on you repay $4,000 per year ($60,000 ÷ 15). Any shortfall in a given year is added to your taxable income for that year.

Stack the FHSA to Grow Your Down Payment

The HBP can be combined with the First Home Savings Account (FHSA). FHSA contributions are tax-deductible, and qualifying first-home withdrawals are tax-free with no repayment required — unlike the HBP. Used together, plus investment growth in each, a couple can mobilize a substantial tax-advantaged down payment.

RRSP contributions used for an HBP withdrawal must sit in the account for at least 90 days before you withdraw them, or the contribution may not be deductible. If you plan a last-minute top-up to fund a down payment, build those 90 days into your timeline.

Q: What's the maximum HBP withdrawal now?

Following the 2024 change, the HBP limit is $60,000 per person (up from $35,000). A couple who both qualify can withdraw up to $120,000 combined.

Q: Do I have to repay the HBP?

Yes. It must be repaid to your RRSP over 15 years, normally starting the second year after your first withdrawal (the fifth year if it falls between 2022 and 2028), at roughly 1/15 of the amount each year. On a $60,000 withdrawal that’s about $4,000/year. Any shortfall is added to your taxable income that year.

Q: Can I use the HBP and FHSA together?

Yes. They stack. FHSA first-home withdrawals are tax-free with no repayment; HBP withdrawals are tax-free but must be repaid to your RRSP over 15 years. Combining them significantly increases available down-payment funds.

Q: Can I use the HBP if I've owned before?

Possibly. The test is that you didn’t live in a home owned by you or your spouse in the current calendar year or the four preceding years. Meet that, and you’re treated as a first-time buyer.