The RRSP Home Buyers' Plan lets first-time buyers withdraw up to $60,000 tax-free for a home. Here is how the HBP works in Ontario in 2026.
Ibrahim Farooqui · Head of Real EstateJul 14, 2026 · 8 min read
The RRSP Home Buyers' Plan (HBP) lets a first-time buyer take up to $60,000 out of their RRSP, tax-free, to put toward a home. A couple who both have RRSPs can pull up to $120,000 combined. You repay the money to your RRSP over 15 years. It is a loan from yourself, not a gift, and that is the key thing to understand.
Below is how the HBP works in Ontario in 2026: who can use it, the 90-day rule, the repayment schedule, what happens if you miss a payment, and how it pairs with the FHSA.
What is the RRSP Home Buyers' Plan?
The HBP is a federal program that lets you withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a first home without paying tax on the withdrawal. Normally, taking money out of an RRSP counts as income and gets taxed. The HBP is the exception.
The catch is that it is a temporary withdrawal. You have to pay the money back into your RRSP over time, or the amount you skip gets taxed as income.
$60,000
the most one person can withdraw from their RRSP under the Home Buyers' Plan
How much can I withdraw under the HBP?
The current limit is up to $60,000 per person. If you are buying with a partner and you both have RRSPs and both count as first-time buyers, you can each withdraw up to $60,000, for a combined $120,000.
You do not have to take the full amount. You can withdraw only what you need for your down payment and closing costs. Withdrawals generally have to happen in the same calendar year, so plan the timing with your lender.
The 90-day contribution rule
This rule trips people up, so read it carefully. Money you contribute to your RRSP must sit in the account for at least 90 days before you withdraw it under the HBP. If you contribute and then pull it out sooner than 90 days, that contribution may not be deductible.
The practical takeaway: if you plan to top up your RRSP specifically to fund an HBP withdrawal, do it at least 90 days before you need the cash. Do not wait until the week you write your offer.
Am I eligible for the Home Buyers' Plan?
You generally need to meet a few conditions:
You are a first-time home buyer. In most cases this means you have not owned a home you lived in as your principal residence in the current year or the previous four calendar years.
You have a written agreement to buy or build a home.
You are a resident of Canada.
You intend to live in the home as your principal residence within a year of buying or building it.
If you owned a home in the past but it has been long enough, you may count as a first-time buyer again. Rules can change and details matter, so confirm your own situation with the Canada Revenue Agency or a tax professional before you count on it.
How does HBP repayment work?
You repay the amount you withdrew back into your RRSP over a period of up to 15 years. Repayment does not start right away. It typically begins the second year after the year you made the withdrawal.
Each year you repay at least one-fifteenth of the total. You make an RRSP contribution and then tell the CRA, on your tax return, that it counts as your HBP repayment for the year rather than a new deductible contribution.
HBP repayment example on a $45,000 withdrawal
Total withdrawn under HBP. Amount: $45,000
Repayment period. Amount: 15 years
Minimum repayment each year. Amount: $3,000
What a missed year does. Amount: $3,000 added to that year's taxable income
Source: Zown Realty, illustrative example, Ontario 2026
What happens if I miss an HBP repayment?
If you do not repay the minimum for a given year, the amount you were supposed to repay gets added to your taxable income for that year. You pay income tax on it, and that portion of your HBP is considered settled (it no longer has to be repaid).
So a missed payment is not a penalty in the fee sense. It just means that slice of your withdrawal becomes taxable income in the year you skip it. If your income is high that year, that can cost you. This is why treating the HBP as a real repayment plan, not a freebie, matters.
HBP vs FHSA: which should I use?
You do not have to choose. The First Home Savings Account (FHSA) and the HBP can be used together for the same purchase. Many Ontario first-time buyers use both.
The big difference: FHSA money never has to be repaid, while HBP money does. That makes the FHSA the simpler tool for most people. The HBP is useful when you already have a meaningful RRSP balance and want to put it to work on a down payment.
HBP vs FHSA at a glance
Maximum you can use. RRSP Home Buyers' Plan: Up to $60,000 per person; FHSA: Up to $40,000 lifetime ($8,000/year)
Do you repay it?. RRSP Home Buyers' Plan: Yes, over 15 years; FHSA: No, it is yours to keep
Tax on withdrawal for a first home. RRSP Home Buyers' Plan: Tax-free; FHSA: Tax-free
Money you pull out of your RRSP under the HBP is money that stops growing tax-sheltered while it is out. Over 15 years, that lost growth can add up. You are borrowing from your future self.
That does not make the HBP a bad choice. Owning a home sooner, and building equity, can be worth more than the RRSP growth you give up. But go in with eyes open. Run both scenarios, and do not assume the HBP is free just because there is no interest charged.
If you are still mapping out where your down payment comes from, our overview of down payment assistance in Ontario walks through the main options side by side.
How the HBP fits into the whole purchase
The HBP is one piece. In Ontario, your minimum down payment is 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1,500,000, and 20% above $1,500,000. On an $800,000 home, that is a $55,000 minimum.
Your HBP and FHSA can help you reach that number. On top of that, first-time buyers in Ontario can claim a land transfer tax rebate of up to $4,000, plus up to $4,475 more on the City of Toronto municipal tax, for as much as $8,475 back in Toronto.
At Zown, there is one more piece. Our Down Payment Boost is cash back of up to 1.25% of the purchase price, to a maximum of $25,000, paid to you at closing. On an $800,000 home that is about $10,000. It lands in your savings at closing, where most buyers put it toward closing costs and early move-in expenses.
Yes. If you both have RRSPs and you each count as a first-time buyer, you can each withdraw up to $60,000, for a combined $120,000 toward the same home. You each repay your own withdrawal over your own 15-year schedule, so treat them as two separate plans.
Do I have to repay the HBP all at once?
No. Repayment is spread over up to 15 years, and it usually starts the second year after you withdraw. Each year you repay at least one-fifteenth of the total by making an RRSP contribution and designating it as your HBP repayment on your tax return.
Does the 90-day rule apply to money already in my RRSP?
The 90-day rule targets fresh contributions made right before a withdrawal. Funds that have been sitting in your RRSP for longer are generally fine to withdraw. If you plan to top up specifically to fund the HBP, contribute at least 90 days ahead so the deduction holds.
Can I use the HBP and the FHSA together?
Yes, and many buyers do. The FHSA gives you up to $40,000 you never repay, while the HBP gives you up to $60,000 you repay over 15 years. Using both can meaningfully grow your down payment for the same first home.
What if my home purchase falls through after I withdraw?
If the purchase does not go ahead, there are rules for repaying the funds to your RRSP so the withdrawal stays tax-free. Timing matters and the details can change, so talk to the CRA or a tax professional promptly rather than leaving the money out.
Is the HBP the same as a first-time buyer tax credit?
No. The HBP is a way to access your own RRSP savings tax-free for a home. Tax credits and land transfer tax rebates are separate benefits. You can often use several of them together, which is why it helps to map your full plan before you buy.
A plain-English guide to the Agreement of Purchase and Sale in Ontario (OREA Form 100): every key clause, what is negotiable, and what to check before you sign.
