HBP Repayment Calculator

Home Buyers’ Plan Repayment Rules

The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their RRSP tax-free to fund a home purchase. The withdrawal limit was increased from $35,000 to $60,000 in the 2024 federal budget. Both you and your spouse or common-law partner can each withdraw up to the maximum, providing up to $120,000 total from combined RRSPs. The funds must be in the RRSP for at least 90 days before withdrawal, and the home must be acquired or built before October 1 of the year following the withdrawal.

Repayment begins in the second calendar year after the withdrawal year and continues over 15 years. Each year, you must repay at least 1/15 of the original withdrawal amount back to your RRSP. For a $60,000 withdrawal, that means $4,000 per year. If you miss a repayment or repay less than the required amount, the shortfall is added to your taxable income for that year—you lose both the RRSP room and pay tax on the unpaid portion at your marginal rate. There is no way to recover that lost room.

HBP Repayment Schedule Example ($60,000 Withdrawal)

You can repay more than the minimum in any year to reduce future obligations, and you can designate which RRSP contributions go toward HBP repayment on your tax return (Schedule 7). A common strategy is to make your annual RRSP contribution and designate the required HBP portion as repayment while claiming the remainder as a new deduction. This effectively allows you to maintain your RRSP savings trajectory while satisfying HBP obligations. If your financial situation is tight, prioritize at least the minimum repayment to avoid the income inclusion penalty.