The RRSP Home Buyers' Plan

The Home Buyers' Plan (HBP) lets eligible first-time buyers withdraw up to $60,000 from their RRSP — tax-free — to put toward a home, as long as it's repaid over time.

Do you qualify?

• You (and your spouse, if applicable) haven't owned a home you lived in during the last four years
• You have a written agreement to buy or build a qualifying home
• You intend to live in the home as your principal residence within a year of buying or building it

If you've recently gone through a separation or divorce, you may qualify even if you don't otherwise meet the first-time buyer test — talk to your broker or the CRA about the specific conditions.

The withdrawal rules

• You must be a Canadian resident when you withdraw the funds
• You can't withdraw more than $60,000 in total, across one or more RRSPs you own
• Funds must have been in the RRSP for at least 90 days before withdrawal to qualify
• You must complete Form T1036 for each withdrawal

Paying it back

Repayments start the second year after you withdraw, and you have up to 15 years to repay the full amount to your RRSP. The CRA sends you a Home Buyers' Plan statement each year showing your remaining balance.