Home Buyers' Plan (HBP) Canada: Complete Guide 2026

Question: Can both spouses use the Home Buyers' Plan?

Answer: Yes! If both spouses or common-law partners qualify as first-time home buyers, each can withdraw up to $60,000 from their respective RRSPs under the HBP. This means a couple can access up to $120,000 combined tax-free for their down payment. Each person must meet the first-time buyer criteria independently and must repay their own HBP withdrawal over 15 years. This is one of the biggest advantages of the HBP for couples buying together.

Question: What happens if I miss an HBP repayment?

Answer: If you don't make your required annual HBP repayment (1/15th of the amount borrowed), the missed amount is added to your taxable income for that year. For example, if your annual repayment is $4,000 and you only repay $2,000, the remaining $2,000 is added to your income and taxed at your marginal rate. You can't make up missed repayments in future years - once it's added to income, that portion is considered repaid. To avoid this, make sure to contribute at least the minimum amount to your RRSP each year and designate it as an HBP repayment when filing your taxes.

Question: What qualifies as a first-time home buyer for HBP?

Answer: You're considered a first-time home buyer if you haven't owned a home that was your principal residence in the last 4 calendar years (not 4 full years). The 4-year period starts January 1st of the fourth year before the withdrawal. So if withdrawing in 2026, you can't have owned a home from January 1, 2022 onwards. Importantly, if you're buying with a spouse who isn't a first-time buyer, you can still use HBP for your share. There's also a special exception for people with disabilities - they can use HBP even if not first-time buyers, as long as the home is more accessible.

Question: Can I use HBP and FHSA together for the same home?

Answer: Yes, absolutely! You can use both the Home Buyers' Plan (up to $60,000 from RRSP) and the First Home Savings Account (up to $40,000) for the same home purchase. This gives you up to $100,000 in tax-advantaged savings for your down payment. The key difference: FHSA withdrawals are tax-free forever with no repayment required, while HBP must be repaid over 15 years. If you have time before buying (1-2 years), prioritize maximizing FHSA first since it's strictly better - you get the tax deduction on contributions AND no repayment obligation.

Question: How long does my RRSP contribution need to be in the account before I can use HBP?

Answer: Your RRSP contribution must be in the account for at least 90 days before you can withdraw it under the HBP, otherwise it won't qualify for the tax deduction. This is to prevent people from contributing to an RRSP solely to immediately withdraw it tax-free. For example, if you plan to use HBP in June, make your RRSP contribution by early March at the latest. Any contributions made less than 90 days before the withdrawal will still be in your RRSP but won't increase your HBP withdrawal room, and you may not get the tax deduction you expected.

Question: What happens to my HBP repayment if I sell my home and buy another?

Answer: Your HBP repayment obligation continues regardless of what happens with your home. If you sell your first home and buy another, you still must make the annual repayments to your RRSP. Selling the home doesn't restart or cancel the repayment schedule. However, you can participate in the HBP again if you meet the first-time buyer criteria at that time (haven't owned a home in the last 4 years) AND you've fully repaid your previous HBP balance. Many people mistakenly think selling the home ends their HBP obligation - it doesn't.