Home Buyers' Plan (HBP) Calculator
Understand the Home Buyers' Plan: withdraw up to $60,000 from your RRSP for a down payment, interest-free. Calculate your repayment schedule and true opportunity cost.
tl;dr
The Home Buyers' Plan lets first-time buyers take money out of their RRSP for a down payment without paying tax on it, as long as they pay it back. Repayments are spread over a set number of years, and any year you fall short, the missed amount is added to your taxable income. The real cost is the tax-sheltered growth the money misses while it's out of your RRSP. An FHSA never has to be repaid, and you can use both.
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Why the HBP's Cost Is Easy to Miss
The HBP feels free: no tax on the withdrawal and no interest. The cost is the tax-sheltered growth the money misses while it's out of your RRSP, plus the risk that a missed repayment is added to your income. For most first-time buyers today, the FHSA — which never has to be repaid — should come first, with the HBP as a top-up.
How the HBP Works
The calculator follows the CRA's rules for withdrawals and repayments.
- 1. You (and your spouse) must be first-time buyers: no home you owned and lived in this year or in the previous 4 calendar years.
- 2. Money must be in your RRSP for at least 90 days before you withdraw it under the HBP.
- 3. Each of you can withdraw up to $60,000.
- 4. Repayments start after a grace period — 5 years for withdrawals made from 2022 to 2025, 2 years otherwise — and run for 15 years at a minimum of 1/15 a year.
- 5. In any year you repay less than the minimum, the shortfall is added to your taxable income.
- 6. The opportunity cost compares your RRSP at retirement with and without the withdrawal.
Common Questions
What is the 4-year eligibility rule?
You must be a first-time homebuyer, meaning you (or your spouse) haven't owned and lived in a home during the past 4 calendar years plus the current year before the withdrawal. This rule applies to BOTH you and your spouse/common-law partner.
What is the RRSP 90-day rule?
Funds must be in your RRSP for at least 90 days before you can withdraw them under HBP. This prevents last-minute contributions solely for HBP purposes.
How much can I withdraw?
Each person can withdraw up to $60,000. Couples can withdraw a combined total of $120,000 from their respective RRSPs.
When do I start repaying?
Withdrawals made between Jan 1, 2022 and Dec 31, 2025 get a 5-year grace period before repayment starts (instead of the usual 2 years). This was introduced in the 2024 federal budget to help recent homebuyers.
How much do I repay each year?
You must repay 1/15th of the total withdrawal each year over 15 years, starting after the grace period ends. You can repay more than the minimum to accelerate repayment.
What happens if I miss a payment?
If you don't repay the minimum amount in any year, the shortfall is added to your taxable income for that year and taxed at your marginal rate.
What is the opportunity cost of using HBP?
The real cost of HBP is the compound growth you lose by removing funds from your RRSP. This calculator shows the difference in RRSP value at retirement with and without using HBP.
Is the FHSA better than HBP?
The FHSA (First Home Savings Account) is often better than HBP because you never have to repay it. However, you can use both together. Spousal RRSP withdrawals for HBP are also exempt from the spousal RRSP attribution rule.
Can I use HBP again?
Yes, you can use HBP again if you've fully repaid your previous HBP balance and meet the 4-year rule again. Track your HBP balance through My CRA Account at canada.ca/my-cra-account.
Before You Withdraw
- ✓Fill your FHSA first — it never has to be repaid.
- ✓Make sure the money has been in your RRSP for at least 90 days.
- ✓Set up automatic repayments so a missed year never lands on your tax return.
- ✓Repay faster than the minimum when you can — the money starts growing tax-sheltered again sooner.
- ✓Compare the FHSA, HBP and TFSA routes side by side in the FHSA calculator.