Home Buyers' Plan (HBP)

HBP at a glance

What is the HBP?

Did you know you can use your RRSP to buy a home? The Home Buyers' Plan (HBP) lets you withdraw funds from your RRSP for a down payment and pay it back later.

Perfect if you are looking to:

Take out up to $35,000 per borrower for a down payment
Draw on your RRSP without being taxed
Take up to 15 years to pay back what you withdraw

Who is eligible?

To qualify:

You must be considered a first-time home buyer
You have to buy or build an eligible home in Canada
The property must be occupied as your primary residence for the first year
Your RRSP contributions must stay in the RRSP for at least 90 days

Tip

Take out a mortgage loan with a down payment as low as 5% of the property value.

Maximum withdrawal

$35,000 per person

Amounts over $35,000 must be declared as income for the current year. Couples can withdraw a total of $70,000 for a down payment on a property.

Tip

Need to top up your down payment? An RRSP loan or line of credit can help you get to $35,000. Note that your loan balance will come due once you withdraw from your RRSP.

Repayment period

15 year maximum

After the end of the first year, you must repay one fifteenth of the amount withdrawn on an annual basis for the next 15 years. You can also pay it back in full at any time. Note that your repayments are not counted as RRSP contributions and are therefore not tax deductible.

Tip

Instead of making lump sum payments once a year, set up systematic savings to pay back your balance on the schedule that suits you best.

Talk to one of our mortgage specialists to learn about your financing options.

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Little details that matter

Your home is eligible if you buy or build it:

Before October 1 during the year after the year you withdrew from your RRSP
Alone or with one or more individuals

Finance your down payment with an RRSP loan or line of credit ¹ to take advantage of the HBP.

Here's how:

Take out an RRSP loan or line of credit.
Put the money you borrowed in your RRSP (up to your contribution limit) and keep it there for 90 days. Interest charges may apply.
Withdraw the amount you need from your RRSP. Note that you will need to pay back your loan in full when you make this withdrawal.
Note that you have up to 15 years to pay back any funds you withdraw from your RRSP, starting after the first year.

FHSA

The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers.

No repayment required
No withdrawal limit
Maximum annual contributions of $8,000 and a lifetime total of $40,000
No minimum holding period required for contributions to be deductible and eligible for withdrawal
The deadline for contributions to a FHSA is December 31 of each year

HBP

The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP to buy or build a first home.

Repayment required
Withdrawal limit of $35,000
Maximum annual contributions of the RRSP, which is 18% of your previous year’s income or the current fixed contribution limit
The money must be deposited into your RRSP 90 days before you withdraw it under the HBP
Deadline for RRSP contributions: 60 days after the end of the year

Good to know

You can combine the FHSA and HBP.

TM All-In-One Banking is a trademark of National Bank of Canada.

Subject to credit approval by National Bank. Speak with your accountant, tax specialist or financial planner to see if this is the right strategy for you.
Subject to credit approval by National Bank of Canada. Certain conditions apply.