RRSP Home Buyers' Plan Calculator 2026 —
HBP Withdrawal & Repayment

The RRSP Home Buyers' Plan (HBP) lets first-time home buyers withdraw up to $35,000 from their RRSP tax-free to buy or build a qualifying home. The withdrawal is not included in your income, but it must be repaid to your RRSP over 15 years (CRA RC4135). The minimum annual repayment is withdrawal ÷ 15. For example, a $35,000 withdrawal requires $2,333 repaid each year for 15 years. Your first repayment is due by December 31 of the second year after the year you made the withdrawal — so a 2025 withdrawal means first repayment by December 31, 2027.

Yes — you can use both the RRSP Home Buyers' Plan and the First Home Savings Account (FHSA) for the same home purchase. These are separate programs with independent rules. The FHSA is generally better because FHSA withdrawals are tax-free with no repayment obligation and the $8,000 annual / $40,000 lifetime contributions are tax-deductible. The HBP is useful for people who have more RRSP room than FHSA room, or who want to access funds they contributed to their RRSP before the FHSA was introduced in 2023. Using both programs can give a couple up to $150,000 tax-free for a home deposit ($70,000 HBP + $80,000 FHSA combined).

If you do not make the minimum annual HBP repayment, the missed amount is automatically added to your taxable income for that year (CRA reports it on your T1028 slip). Example: your required repayment is $2,333/year. You repay $1,000. The remaining $1,333 is added to your income and taxed at your marginal rate. At a 40.16% combined marginal rate (Ontario, ~$100K income), a missed $2,333 repayment costs $936 in extra tax. Missed repayments also reduce your remaining HBP balance and shorten the remaining repayment schedule slightly.

No — HBP repayments do NOT create new RRSP contribution room. They restore the contribution room used by your original HBP withdrawal. When you withdrew $35,000, your RRSP was reduced by $35,000. Your annual repayments rebuild that balance inside your RRSP. Think of HBP repayments as mandatory RRSP contributions with no additional tax deduction. This is different from a regular RRSP contribution, which both uses contribution room AND is tax-deductible from your income. HBP repayments: restore room already used, not deductible. Regular RRSP contributions: use new room, are deductible.

Yes — each person in a couple can withdraw up to $35,000 from their own RRSP, for a combined maximum of $70,000. Both people must individually qualify as first-time home buyers (or not have owned a principal residence in the 4+ calendar years before the withdrawal). Each person has their own separate repayment obligation ($35,000 ÷ 15 = $2,333/yr each). This doubles the available tax-free deposit funds. Combined with the FHSA ($40,000 per person), a couple can access up to $150,000 tax-free for their first home.

FHSA is generally superior if you have not yet bought a home and have time to accumulate room: FHSA contributions are tax-deductible AND withdrawals are tax-free with no repayment obligation. It is essentially an RRSP for your first home purchase. The HBP is better when: (1) you have significant RRSP savings from before the FHSA existed in 2023; (2) you are buying in the short term and cannot accumulate enough FHSA room; or (3) you want to use both programs together for maximum deposit. Key HBP disadvantage: you must repay the withdrawn funds over 15 years or face income inclusion — the money leaves your RRSP for up to 15 years and misses compound growth during that period.

To be eligible for the RRSP HBP: (1) You must be a first-time home buyer — defined as not owning a principal residence at any time in the current or preceding four calendar years. (2) You must have a written agreement to buy or build a qualifying home. (3) The RRSP funds being withdrawn must have been in the plan for at least 90 days before withdrawal. (4) You must be a Canadian resident when you make the withdrawal and when you buy or build the home. (5) The home must be your principal place of residence by October 1 of the year after you make the withdrawal. People with disabilities may also access the HBP for a home better suited to their needs, even if they are not a first-time home buyer.

The HBP removes up to $35,000 from your RRSP for up to 15 years. The opportunity cost is the investment growth you forgo during that period. At 7% annual return, $35,000 left in an RRSP for 15 years grows to ~$96,500. If you repay the full $35,000 over 15 years, you recover the principal but not the investment returns on the withdrawn amount. Net opportunity cost: roughly the returns you would have earned on the unpaid balance each year. For a 2025 withdrawal at 7%, the opportunity cost over 15 years is estimated at $20,000–$30,000 in forgone compound growth — real but often worth it to accelerate home ownership.