Fiscal and Financial Planning Guide 2024-2025

Future Owners > Home Buyer’s Plan (HBP)

The HBP was initially introduced in 1992.

It is intended to facilitate access to home ownership by allowing for the temporary withdrawal of RRSP funds for the purchase or construction of a first home.

Ceiling increase

The HBP withdrawal ceiling is increase from $35,000 to $60,000 for withdrawal made after the 16th of April 2024.

As a result of this increase, a couple could withdraw a maximum of $120,000 from their RRSP when they purchase a new home.

Extended repayment start period

In addition, the repayment start period is increased from 2 years to 5 years after the withdrawal made between January 1, 2022 and December 31, 2025.

Conditions to be met when withdrawing from an RRSP

  •  Must be age 71 or under (there is no minimum age)
  • The buyer or his or her spouse must not have owned a residence that they occupied together in the year of purchase or in any of the four preceding years.
  • Canadian resident

 Eligible Housing

  • Single-family homes, townhouses;
  • Condominiums;
  • Mobile homes;
  • Duplexes, triplexes, quadruplexes.

RRSP withdrawals must be repaid over a 15-year period.

Amounts not repaid in a year must be included in income.

Separation to divorce

Since 2019, a couple ending their union can benefit from the HBP again under certain conditions:

  • They must have been separated for at least 90 days.
  • The initial HBP must have been made after 2019 and must have been fully repaid at the latest 60 days of the following year.

The proceeds of the new HBP may be used to purchase the former spouse’s share by the spouse wishing to keep the home, or to purchase new homes by choice of the spouses.

If neither spouse retains the home, it must be sold no later than two years after the end of the year in which the new HBP withdrawal is made.

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