Key HBP Facts
Who Can Use the HBP
First-time homebuyers or those who haven’t owned a home in the previous four years
Must intend to occupy the home as your principal residence within one year of purchase or build
Maximum Withdrawal
You can withdraw up to $35,000 from your RRSP under the HBP
Repayment Requirement
Withdrawn funds must be repaid to your RRSP over a 15-year period starting the second year after the withdrawal
Annual repayments are 1/15th of the total amount withdrawn
Important Deadline
You must buy or build the qualifying home by October 1 of the year after the withdrawal
Example: If you withdraw funds in 2023, you must buy or build the home by October 1, 2024
Why Use the HBP?
Access Your Savings Tax-Free
Withdraw from your RRSP without triggering immediate tax payments
Support Your Home Purchase
Use the funds for a down payment or other home-buying costs
Flexible Repayment Terms
Repay gradually over 15 years without interest
How to Participate in the HBP
Check if you meet the eligibility requirements for first-time homebuyers
Fill out Form T1036 – Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP and submit it to your RRSP provider
Use the withdrawn funds toward your qualifying home purchase or build
Early Repayment Benefits
Save on Taxes
Repaying more than the minimum amount or repaying early reduces the taxable amount you would need to add to your income if a repayment is missed
Grow Your Retirement Savings
Early repayments return funds to your RRSP sooner, allowing them to benefit from tax-deferred growth
Flexibility
You can make lump-sum payments or contribute more than the required amount annually, accelerating your repayment timeline
Why This Matters
The HBP is a valuable tool for first-time homebuyers to access their savings and make homeownership more affordable.