RRSP Home Buyers Plan

The Home Buyers' Plan (HBP) lets first-time homebuyers withdraw up to $60,000 from their RRSP without paying income tax on the withdrawal — provided the funds go toward buying or building a qualifying home. The withdrawal cap was raised from $35,000 to $60,000 in the 2024 federal budget for withdrawals after April 16, 2024. You must repay the withdrawn amount to your RRSP over 15 years, starting in the second year after the year of withdrawal. Each year you must repay 1/15 of the original withdrawal; if you don't, the unpaid portion is added to your taxable income for that year. The HBP works alongside the FHSA — many homebuyers use both together. The HBP gives you a larger lump-sum but is repayable; the FHSA gives less ($40k lifetime) but is non-repayable. Used together, a couple can pull up to $200,000 in tax-advantaged funds (2 × $40k FHSA + 2 × $60k HBP).