How does Home Buyers' Plan repayment work in Canada?
Taking money from your RRSP for a first home is not free money. It is a loan from yourself, and the CRA tracks the repayments. Here is how the schedule works, with the math.
The basics
The HBP withdrawal limit is currently $60,000. You then have up to 15 years to repay what you took out, according to the CRA. For withdrawals made before 2022, repayment starts the second year after the first withdrawal. For first withdrawals from 2022 through 2025, relief pushes the start to the fifth year after the withdrawal year, and the CRA says the same relief applies to first withdrawals from January 1, 2026 to December 31, 2028. A 2026 withdrawal means the first repayment year is 2031.
The yearly minimum
Your minimum each year is your HBP balance divided by the years left in your repayment period. At the start that is about 1/15 of the withdrawal. You repay by contributing to your RRSP in the repayment year or within the first 60 days of the next year, then designating that contribution as a repayment on Schedule 7 of your return.
| Example (illustrative) | Number |
|---|---|
| HBP withdrawal in 2026 | $35,000 |
| First repayment year | 2031 |
| Yearly minimum | $35,000 / 15 = $2,333.33 |
| You repay only | $1,500 |
| Shortfall added to your income | $833.33 |
| Tax at a 30% marginal rate | about $250 |
Your tax rate will differ. The shortfall is also gone from the plan: it is no longer a balance you can repay later.
Where to see your number
The CRA sends an HBP statement of account with your Notice of Assessment. It shows what you have repaid, your remaining balance and the minimum for next year. You can also check your CRA account. You must file a return every year until the withdrawal is repaid or included in income, even if you owe no tax.
Repaying faster
You can repay the full amount at any time. Extra repayments lower the minimums in later years, but the repayment period stays the same. Do not enter repayments on line 12900 and do not claim the designated contribution as a deduction on line 20800, since it is not a regular RRSP deduction.
Planning around it
- Pencil the yearly minimum into your budget before you buy. See how much down payment you need.
- Understand the account first with our RRSP guide and the RRSP deadline.
- Compare with the FHSA, which has its own rules.
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