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The Home Buyers' Plan (HBP), first implemented in 1992, allows you to borrow up from your RRSP to buy or build a qualifying home, if you are a first-time home buyer.

Definition of First-Time Home Buyer

You will be considered to be a first-time home buyer if:

you or your spouse or common-law partner have not owned a home which you occupied as your principal residence during the four years preceding the withdrawal for the Home Buyers' Plan (except in the 30 days prior to the withdrawal)

Breakdown of a Marriage or Common-Law Partnership

The Federal 2019 Budget announced an extension of access to the HBP after the breakdown of a marriage or common-law partnership. To be eligible, the individual:

	must live separate and apart from the spouse for a period of at least 90 days as a result of a breakdown in their marriage or common-law partnership.
	begins to live separate and apart from their spouse in the year in which the withdrawal is made or any time in the 4 preceding years.
	lives separate and apart from their spouse at the time of the withdrawal.
	cannot be occupying their principal place of residence with a new spouse or common-law partner.
	must have disposed of their previous principal place of residence no later than 2 years after the end of the year in which the HBP withdrawal is made. This requirement will be waived for individuals buying out the share of the residence owned by the individual's spouse or common-law partner. The existing rule that individuals may not acquire the home more than 30 days before making the withdrawal will be waived in this case.
	must have an outstanding HBP balance of nil at the beginning of the year in which the withdrawal is made.

Maximum Withdrawal Amount From Home Buyers' Plan

2024 Federal Budget changes in Bill C-69, now in effect:

	Increasing the RRSP Home Buyers' Plan maximum withdrawal from $35,000 to $60,000
	Allowing those who made HBP withdrawals after January 1, 2022 and those who will make withdrawals prior to the end of 2025 to take more time to begin repayments, up to 5 years in total rather than 2.

Previous Maximum Withdrawals:

	$35,000 after March 19, 2019 - Bill C-97 Royal Assent June 21, 2019
	$25,000 after January 27, 2009 and prior to March 20, 2019
	$20,000 prior to January 28, 2009

The maximum amount that can be borrowed was increased to $25,000 by the Federal 2009 Budget, which also announced a new First-Time Home Buyers' Tax Credit. The maximum amount was increased to $35,000 by the Federal 2019 Budget, for withdrawals after March 19, 2019. This measure was included in Bill C-97 which received Royal Assent on June 21, 2019.

Note that your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the Home Buyers' Plan, or the contributions may not be deductible for any year. In other words, if RRSP contributions are made in the 89-day period just prior to an HBP withdrawal from the RRSP, the value of the RRSP after the HPB withdrawal must be at least equal to those contributions.

Income tax will not be deducted from the amount withdrawn, and the withdrawal amount will not be included in your income.

Home Buyers' Plan Repayments

The funds withdrawn from the Home Buyers' Plan must be repaid over a maximum of 15 years, starting no later than the second year following the year in which they are withdrawn. Each year that a repayment is due but not paid, the amount due (1/15th of the amount borrowed) will be included in taxable income. An RRSP contribution made in the year of the HBP withdrawal, even prior to the HBP withdrawal, can be designated as a repayment of the HBP.

The 2024 Federal Budget includes a proposal to allow up to 5 years before repayments are required, for withdrawals made from January 1, 2022 to December 31, 2025.

See the article Make sure you report repayments to RRSP Home Buyers' Plan! on the Filing Your Return page.

If you buy the home with your spouse, common-law partner, or other individuals, each of you can withdraw up to the maximum amount.

Qualifying Home for Home Buyers' Plan

A qualifying home means

	a housing unit located in Canada, or
	a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada

A mobile home is a qualifying home, but a recreational vehicle is not.

Conditions for Qualifying for Home Buyers' Plan

	You must buy or build the qualifying home by October 1 of the year after the year of withdrawal. See Important Dates for RRSP, RDSP, HBP and LLP on the Canada Revenue (CRA) website.
	You must intend to occupy the home as your principal residence no later than one year after its acquisition, i.e., one year after it is available for vacant possession.
	*Before* applying to withdraw funds you must enter into a written agreement to buy or build a qualifying home.

For more information, see the Canada Revenue Agency (CRA) information on the Home Buyers' Plan, including conditions for participating in the HBP.

Conditions Not Met After Home Buyers' Plan Withdrawal

If you don't meet all the conditions after you have made the HBP withdrawal, your withdrawals will be included in income for the year of the withdrawal. If CRA has already issued a notice of assessment for the year of the withdrawal, they will reassess your return to include the withdrawals. This may be avoided if you are able to cancel your participation.

In Lipczak v. The Queen 2009 TCC 507, Alice Lipczak appealed the inclusion of the HBP withdrawal amount in her income. She had withdrawn $20,000 from her RRSP under the HBP in 2005, after entering into a written agreement for the construction of a condominium. The agreement specified that the date of possession would be May 1, 2008. She had made payments of $41,774 for the construction of the housing unit. She did not take possession of the condo, or another housing unit, before the completion date of October 1, 2006. The Court found in favour of Lipczak, because she did intend to occupy the home within 1 year after the date it was to become available for vacant possession, and she had made payments for the construction of the condo in 2005 and 2006.

Home Buyers' Plan Cancellation

If, after withdrawing funds as a Home Buyers' Plan withdrawal, circumstances change and you don't meet all the conditions, you can cancel your participation in the HBP, and you have a limited time to repay the funds. See the CRA information "How do I cancel my participation?". If you have met all the conditions of the HBP, you cannot cancel your participation. You can cancel your participation if you have otherwise met all the conditions, but:

	you did not buy or build a qualifying home or replacement property; or
	you became a non-resident before buying or building a qualifying home or replacement property.

If you withdrew funds under the HBP to help a related person with a disability, you can cancel your participation if:

	that person doesn't buy or build a qualifying home or replacement property; or
	you become a non-resident before that person buys or builds a qualifying home or replacement property.

If you cancel your participation because a qualifying home or replacement property was not purchased or built, cancellation payments to your RRSP must be made by December 31st of the year after the year you withdrew the funds.

If you cancel your participation because you became a non-resident after you withdrew the funds, the repayment due date will depend on when you became a non-resident:

If you became a non-resident before filing a tax return for the year you withdrew the funds, repay the funds by the earliest of:

	the date you file your tax return for the year of the withdrawal; or
	December 31st of the year after the year of the withdrawal

If you became a non-resident after filing your tax return for the year you withdrew the funds, you must repay the funds by December 31st of the year after the year of the withdrawal.

Cancellation payments can be made to any of your RRSPs or to a new RRSP, with any issuer.

Home Buyers' Plan and First Home Savings Account

Funds from a Tax-Free First Home Savings Account (FHSA) can be used to help purchase a home for which a Home Buyers' Plan loan is also being used.

Using Home Buyers' Plan Funds to Buy Land

The Income Tax Act does not specify that the funds withdrawn must be used to pay for the house that is being built. It specifies that the amount withdrawn must be received as a result of making a written request in a prescribed form. The form is T1036 - Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP. The taxpayer must provide the address of the qualifying home being bought or built, and must assert that a written agreement has been entered into for the purchase or building of the qualifying home (not for the purchase of land). If all conditions to participate in the HBP are satisfied, the funds can be used for any purpose.

Home Buyers' Plan and the Tax Return

If you make a withdrawal from your RRSP for the HBP or LifeLong Learning Program (LLP) in the calendar year, you will be issued a T4RSP showing these withdrawals. Withdrawals in 2024 would be reported on the 2024 income tax return. Both withdrawals from your RRSP and repayments to your RRSP related to the HBP or to the LifeLong Learning Program (LLP) are recorded on Schedule 7 of your tax return. Any payment that you made into your RRSP from January 1, 2024 to March 1, 2025 (in the year or within 60 days after the end of the year) can be designated as a repayment under the HBP or the LLP on the HBP or LLP worksheet of your 2024 tax return. You cannot designate more than the amount of this RRSP contribution.

Note that the payments made:

	from January 1 to March 1, 2023 should have been reported on your 2022 tax return, and
	from January 1 to March 1, 2024 must be reported on your 2023 tax return

See the link below for how to correct this if you didn't report in the correct taxation year.

If the minimum required payment amount is not repaid by the due date it must be included in income on line 12900 (line 129 prior to 2019) of your tax return for the year in which it was due. For instance, if you borrowed $15,000 under the HBP from your RRSP in 2020, the first repayment of $1,000 was due in 2023. If this was not repaid, it must be included as income on line 12900 (RRSP income) of your tax return. If you are using a tax return software package, completing this information on the HBP Worksheet will automatically include the amount on line 12900.

Canadian Tax Calculator - HBP and LLP Repayments

If you are using the Canadian Income Tax and RRSP Savings Calculator, withdrawals from and payments into your RRSP for the HBP or the LLP should not be entered into the calculator. However, if you have not made the minimum required payment for either the HBP or the LLP, then any shortfall from this amount must be entered as income - this can be entered on the "other income" line.

Lifelong Learning Plan (LLP)

The Lifelong Learning Plan (LLP) allows you to withdraw amounts from your RRSP to finance full-time training or education for you or your spouse or common-law partner. The funds must be repaid over a period of 10 years.

For more information on the Lifelong Learning Plan, see Canada Revenue Agency topic Lifelong Learning Plan (LLP).

Tax Tips:

Take advantage of the Home Buyers' Plan.

Make sure you complete Schedule 7 if you have made repayments to the HBP or LLP, otherwise you lose RRSP deduction room.

TaxTips.ca Resources

Make sure you report repayments to RRSP Home Buyers' Plan

RRSP Contributions Not Reported on Previous Year Tax Return. What Now?

First-Time Home Buyers' Tax Credit

Canada Revenue Agency (CRA) Resources

What is the Home Buyers' Plan?

Schedule 7 - RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities - Common

Conditions for participating in the HBP

Important Dates for RRSP, RDSP, HBP and LLP

T1036 - Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP

How do I cancel my participation?

Form RC471 Home Buyers' Plan (HBP) - Cancellation

Lifelong Learning Plan (LLP)

Revised: November 28, 2024