The Home Buyers' Plan lets first-time buyers in Canada withdraw up to C$60,000 from their RRSPs tax-free toward a home, as long as they pay it back over 15 years.
The limit is per person, so a couple who both qualify can take out up to C$120,000. You generally count as a first-time buyer if you didn't live in a home owned by you or your current spouse or partner earlier in the year of the withdrawal or in the four years before.
Repayments run over 15 years. They normally start in the second year after your first withdrawal, but for first withdrawals made from January 1, 2022 to December 31, 2028 they start in the fifth year: a first withdrawal in 2026 means repayments begin in 2031. A required repayment you skip is added to your income for that year.
You can use the HBP and an FHSA for the same home. FHSA withdrawals never have to be paid back; HBP withdrawals do.
How to check
Your notice of assessment shows your Home Buyers' Plan balance and the repayment due for the coming year.
Sources
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