Home Buyer’s Plan (HBP)

The Home Buyers' Plan ↗ allows eligible individuals to withdraw up to $25,000 tax free from their Registered Retirement Savings Plan (RRSP) ↗ to purchase or build a qualifying home.

Delivered by: Canada Revenue Agency (CRA)

Eligibility Information

A number of conditions have to be met in order to participate in the HBP ↗. While some conditions have to be met before you can withdraw funds from your RRSPs, others apply when or after you receive the funds.

Generally, if you participate in the HBP, you have to meet all the HBP conditions yourself. However, depending on your situation, some conditions may apply to another person. For example, if you withdraw funds from your RRSPs to buy or build a qualifying home for a related person with a disability, or to help a related person with a disability buy or build a qualifying home, some conditions have to be met by that person.

Regardless of the situation, you are responsible for making sure that all applicable HBP conditions are met.

Dates and Deadlines

It's easy to contribute up to $25,000 to your RRSP, because allowable unused contributions since 1991 can be fully used and deductible. Also, if you take out a 90-day loan from your financial institution, and pay it back immediately after the 90-day period using money withdrawn from your RRSP, you will legally obtain your income tax deduction. Afterwards, you will have almost 18 years to reinvest the money in your RRSP, without interest. It's a simple strategy with fabulous results!

Still have some doubts?

The first repayment starts the second year following the year the withdrawal is made.

Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years.

Contact Information

Contact the Canada Revenue Agency ↗.