General information only — not financial advice for your situation.
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Plain English
A program that lets you borrow up to $60,000 from your own RRSP tax-free to buy your first home. You pay yourself back over 15 years.
Technical definition
The Home Buyers' Plan (HBP) allows a qualifying first-time home buyer to withdraw up to $60,000 from their RRSP tax-free to purchase a qualifying home. It functions as a self-issued interest-free loan that must be repaid to the RRSP over a 15-year period, starting the second year after the withdrawal. Missed repayments are added to taxable income.
Examples
- • You withdraw $60,000 from your RRSP under the HBP. Your minimum annual repayment is $60,000 ÷ 15 = $4,000/year. If you skip a year, that $4,000 is added to your taxable income.
- • A couple can each withdraw $60,000 under HBP for the same home, accessing up to $120,000 combined.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.