The Home Buyers’ Plan (HBP) allows eligible buyers to withdraw up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home, without including the eligible withdrawal in their income.

If both partners qualify, a couple can withdraw up to $120,000 combined from their respective RRSPs. The home can be an existing property or a new build.

Who qualifies?

Generally, you must:

• Have a written agreement to buy or build a qualifying home in Canada.

• Meet the HBP’s first-time home buyer requirements.

• Be a Canadian resident from your first eligible withdrawal until you acquire the home.

• Intend to occupy it as your principal residence within one year of acquiring it.

The first-time buyer test generally considers whether you lived in a home owned by you or your current spouse or common-law partner during the current calendar year before withdrawal or the four preceding calendar years. Special timing rules and exceptions apply.

How does repayment work?

You have up to 15 years to repay your HBP withdrawal. Under current temporary relief, first withdrawals made between January 1, 2022, and December 31, 2028, have repayments starting in the fifth year after withdrawal.

For example, if your first withdrawal is in 2026, your first repayment year is 2031.

Repayments designated under the HBP are not tax-deductible. If you repay less than the required annual minimum, the shortfall generally must be included in your taxable income.

Are there exceptions?

The first-time buyer requirement may be waived when purchasing or building a qualifying home for yourself or a related person who qualifies for the Disability Tax Credit. The home must be more accessible or better suited to that person’s needs.

Before withdrawing, review the CRA’s full eligibility and withdrawal rules, including purchase deadlines and restrictions affecting recently contributed RRSP funds.

Planning your first purchase? Contact the Vieira Team for help navigating your home search.