The Home Buyers' Plan (HBP): Withdrawal Limit, Repayment, and FHSA Stacking
Where the withdrawal sits in the order of cheques is the FHSA sequencing guide. The rest of the first-purchase stack, including CMHC and line 31270, is the first-time home buyer guide. The loan those dollars become is underwritten in the stress test and priced in the Canadian mortgage guide. RRSP room you are about to spend is also the RRSP playbook.
- Limit: $60,000 per person, in each participation period. Two eligible spouses can withdraw $60,000 each, $120,000 combined, from their own RRSPs.
- CRA's page says the temporary repayment relief was extended to a first withdrawal between January 1, 2026 and December 31, 2028. Repayment starts in the fifth year after the withdrawal year. A 2026 withdrawal starts in 2031.
- The annual minimum is the balance divided by 15. On $60,000, that is $4,000. You designate the repayment on Schedule 7. You do not get a second RRSP deduction for a dollar you designate as a repayment.
- The home has to be bought or built before October 1 of the year after the first withdrawal. You must intend to occupy it as a principal residence within one year. The form is T1036, filed with the RRSP issuer before the money moves.
- Contributions made in the 89 days before the withdrawal can lose their RRSP deduction to the extent of the withdrawal. Contribute earlier than the closing scramble.
What are the conditions?
| Rule | What CRA requires |
|---|---|
| Ceiling | $60,000 in total from your RRSPs during a participation period. Withdrawals have to come from RRSPs, using Form T1036 for each withdrawal. |
| Same home as an FHSA | Allowed, if you meet the HBP conditions and the FHSA qualifying-withdrawal conditions at the time of each withdrawal. |
| Written agreement and deadline | You need an agreement to buy or build a qualifying home in Canada. You must acquire or build it before October 1 of the year after the year of the first withdrawal. |
| Occupancy | You must intend to occupy the home as your principal residence within one year after buying or building it. A specified disabled person is a separate path, with that person as the intended occupant. |
| Residency | You must be a resident of Canada. Confirm the residency timing on CRA's participation page in the year you withdraw. |
| Repayment start | For a first withdrawal in 2026, 2027, or 2028, the 15-year period starts in the fifth year. CRA's example: a 2026 withdrawal is first repaid in 2031. |
| Missed repayment | The shortfall is included in income for that year. You do not get the RRSP room back by failing to repay. |
Table as of September 2026. Source: CRA, "The Home Buyers' Plan," and CRA, "How to participate in the Home Buyers' Plan."
What does repayment cost?
Priya withdraws $60,000. Sam withdraws $40,000. They are each a participant. Priya's annual minimum, once repayment starts, is $60,000 divided by 15, which is $4,000. Sam's is $40,000 divided by 15, which is $2,666.67. CRA's page puts the first repayment year for a 2026 first withdrawal in 2031, so the 2031 return is the first year they designate a repayment on Schedule 7. Over 15 years Priya designates $60,000 and Sam designates $40,000. Designating more than the minimum in one year reduces later required payments. It does not create a new deduction.
If Priya designates nothing in 2031, $4,000 is added to her 2031 income and taxed at her marginal rate. The HBP balance falls by that $4,000 anyway. She has paid tax on money she could have put back into the RRSP. That is the expensive way to skip a year. The contribution room she uses to repay is room she cannot also deduct. The limits table is why the repayment and a new deductible contribution are two different uses of the same dollar.
How do you stack the FHSA without breaking either plan?
A qualifying FHSA withdrawal is tax-free and is not repaid. An HBP withdrawal is tax-free at the time only because you agree to repay it. Using both for the same down payment is explicitly allowed. The mistake is treating them as interchangeable.
- Cash into the FHSA if you want a deduction and a withdrawal you do not repay. Lifetime room is $40,000. Annual room is $8,000, with a capped carry-forward. The FHSA guide is the room formula.
- Leave the RRSP alone if the investments are for retirement and you can fund the down payment from the FHSA and taxable cash. A withdrawn dollar stops compounding inside the RRSP until you repay it, and the repayment earns no second deduction.
- Transfer from the RRSP to the FHSA only when you have decided you would rather not repay an HBP. A transfer uses FHSA room, does not create a new deduction, and does not restore RRSP room. The sequencing guide already walks that choice.
- Do not contribute to the RRSP and withdraw it the same week. Contributions in the 89 days before an HBP withdrawal are not deductible to the extent of the withdrawal. The issuer will still process a T1036. The deduction is the piece you lose later.
The mortgage that sits on top of this down payment still has to pass the qualifying rate. A larger down payment can move you under 80% loan-to-value and off high-ratio insurance. It does not, by itself, remove OSFI's uninsured stress test. Price that in the stress test guide before you empty the RRSP to chase a slightly smaller loan. Closing costs are still extra cash: the land transfer guide.
Frequently asked questions
What is the Home Buyers' Plan limit in 2026?
CRA's page says the withdrawal limit is $60,000. That is per person, from that person's RRSPs, for a participation period. A spouse who also qualifies can withdraw up to $60,000 from their own RRSP. You cannot withdraw $120,000 from one person's plan by calling it a household limit.
When do I start repaying a 2026 withdrawal?
CRA says the repayment relief was extended to first withdrawals from January 1, 2026 through December 31, 2028. The 15-year period starts in the fifth year after the withdrawal year. CRA's example is explicit: a first withdrawal in 2026 has a first repayment year of 2031. Designate the repayment on your 2031 return.
What happens if I miss a repayment?
The unpaid minimum is included in your income for that year. You pay tax on it at your marginal rate. The HBP balance is reduced as if you had repaid it, and you do not get new RRSP room from the inclusion. Repaying is usually cheaper than taking the income inclusion, unless you have no contributions to designate and the tax cost is one you have planned for.
Can I use the Home Buyers' Plan and an FHSA together?
Yes, for the same qualifying home, if each withdrawal meets its own conditions. The FHSA withdrawal is requested from the FHSA issuer. The HBP withdrawal needs Form T1036 at the RRSP issuer before the money comes out. You cannot withdraw first and label it later.
How long do RRSP contributions have to sit before I withdraw them?
Contributions made during the 89 days before the HBP withdrawal are not deductible to the extent you withdraw them under the plan. Leave more than 89 days between the contribution and the T1036 withdrawal if you want the deduction. Confirm the day count on the T1036 instructions in the year you sign them.
What if the purchase falls through?
You generally have until October 1 of the year after the withdrawal year to buy or build the home. If you will not, CRA has a cancellation process (Form RC471) with its own deadline. A withdrawal that stops being eligible becomes an ordinary RRSP inclusion. Do not wait for the notice of assessment to discover that. Read the cancellation rules as soon as the deal dies.
Sources
- CRA: The Home Buyers' Plan
- CRA: How to participate in the Home Buyers' Plan
- CRA: First Home Savings Account
- CRA Form T1036
The withdrawal is tax-free only because the repayment is a promise.
Schedule 7 is where that promise is kept or broken. The 2026 tax guide is the filing side of an HBP, an FHSA, and the home buyers' amount.
Get the 2026 Tax Guide — $49 CAD
