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🇨🇦 CRA Form T1036 • HBP • FHSA • 2026 Rules

FHSA vs HBP: CRA Home Buyers' Plan Withdrawal Guide 2026

Understand the 2026 Home Buyers' Plan: eligibility for tax-free RRSP withdrawals up to $60,000 per person, Form T1036, the real 89-day contribution rule, repayment timing, FHSA coordination, and what happens when an HBP condition is not met.

1. What the Home Buyers' Plan Does

The Home Buyers' Plan (HBP) allows an eligible individual to withdraw money from their RRSPs to buy or build a qualifying home for themselves or for a specified disabled person. The current maximum is $60,000 per individual in each participation period. Amounts withdrawn within the HBP limit are not included in income at the time of the eligible withdrawal, provided all HBP conditions are met.

Key Framework Highlights:
  • The HBP limit is $60,000 total per individual for the participation period, even when funds are withdrawn from more than one RRSP.
  • A married or common-law couple does not have a joint $120,000 account limit. Each person must independently qualify and can generally use their own HBP limit, potentially producing a combined $120,000.
  • Form T1036 is required for each HBP withdrawal and is given to the RRSP issuer.
  • The HBP does not require a minimum 89-day holding period for every contribution. Instead, the 89-day rule limits the deduction available for certain contributions made shortly before the withdrawal.
  • You must satisfy the HBP eligibility requirements, including the first-time-home-buyer rule unless an exception applies, a qualifying written purchase or construction agreement, Canadian residency requirements, and principal-residence intentions.

2. First-Time Home Buyer Rule in 2026

For the ordinary HBP first-time-home-buyer test, you generally cannot have lived in a qualifying home as your principal place of residence if you or your current spouse or common-law partner owned or jointly owned that home during the current calendar year before the withdrawal, except for the 30 days immediately before the withdrawal, or during any of the preceding four calendar years. Certain exceptions apply, including specified-disabled-person situations and qualifying separation from a spouse or common-law partner.

SituationGeneral HBP treatment
Never owned or lived in an owned qualifying homeCan satisfy the first-time-home-buyer condition if the other HBP requirements are met.
Owned and lived in a qualifying home during the preceding four calendar yearsGenerally not a first-time home buyer for the current withdrawal.
Current spouse/common-law partner owned the home you lived inThat ownership can prevent you from satisfying the first-time-home-buyer test.
Former home was sold and sufficient time has passedYou may become a first-time home buyer again once the four-year and current-year requirements are satisfied.
Separated from spouse or common-law partnerA specific HBP exception can apply when the statutory separation conditions are satisfied.
Specified disabled personThe first-time-home-buyer condition can be waived where the statutory disability-related requirements are satisfied.

3. Qualifying Home and Acquisition Timing

The property must be a qualifying home located in Canada, including qualifying houses, condominium units and certain other housing units. You must generally have a written agreement to acquire or build it when you make the withdrawal. The home or an eligible replacement property generally must be acquired or built before October 1 of the year after the year of the first withdrawal.

4. Form T1036 and the Withdrawal Process

To make an HBP withdrawal, complete Form T1036 for each withdrawal and provide it to the RRSP issuer. The individual completes Area 1 and the issuer completes Area 2. Multiple HBP withdrawals are permitted, but they are generally limited to the same calendar year as the first withdrawal and January of the following calendar year.

Action Checklist:
  • Confirm HBP eligibility before requesting funds.
  • Complete Form T1036 for the withdrawal.
  • Submit Area 1 to your RRSP issuer.
  • Allow the issuer to complete Area 2 and process the withdrawal.
  • Keep a copy of the completed form and the withdrawal records.
  • If making multiple HBP withdrawals, ensure every withdrawal is within the permitted withdrawal period.
  • Do not assume that a locked-in RRSP or group RRSP can be used; many such plans do not permit HBP withdrawals.

5. The Real 89-Day RRSP Rule

The 89-day rule is not a blanket requirement that RRSP money must simply sit in the account for 89 days before an HBP withdrawal. CRA instead limits the deductibility of certain contributions made during the 89-day period immediately before the HBP withdrawal. The amount that may be non-deductible is generally the excess of qualifying contributions made during that period over the fair market value of the property remaining in the RRSP immediately after the withdrawal, subject to the detailed exclusions and calculation rules.

6. HBP Repayment Rules for 2026 Withdrawals

The HBP normally gives 15 years to repay the amount withdrawn. The temporary three-year repayment deferral applies to individuals whose first HBP withdrawal was made between January 1, 2022 and December 31, 2025. A first HBP withdrawal made in 2026 is not covered by that temporary relief, so the normal repayment timing applies.

Key Framework Highlights:
  • For a first withdrawal made in 2026, the 15-year repayment period generally starts in 2028.
  • The minimum annual repayment is generally calculated by dividing the outstanding HBP balance by the number of years remaining in the repayment period.
  • You can repay more than the minimum amount in a year.
  • You can repay the full remaining HBP balance early.
  • The exact repayment amount is tracked by CRA on the HBP statement associated with the individual's tax records.

7. How to Make and Report HBP Repayments

An HBP repayment is not a payment sent directly to CRA. You make a contribution to your own RRSP, PRPP or SPP in the year the repayment is due or in the first 60 days of the following year, then designate the amount as an HBP repayment on Schedule 7.

Action Checklist:
  • Make the required contribution to your own RRSP, PRPP or SPP.
  • The contribution must be made in the repayment year or in the first 60 days of the following year.
  • Complete Schedule 7 and designate the amount as an HBP repayment.
  • Do not deduct the designated repayment again as an RRSP contribution.
  • Do not report a designated repayment as ordinary income on line 12900.
  • Keep the contribution receipt and Schedule 7 records.

8. FHSA vs HBP: You Can Use Both for the Same Home

Current CRA guidance allows an eligible person to make a qualifying FHSA withdrawal and an HBP withdrawal for the same qualifying home, provided the conditions for each program are met. This means the two programs can be coordinated instead of choosing one universally. The FHSA has its own participation, contribution and withdrawal rules.

9. Repeat HBP Participation

HBP participation can be possible more than once. A person who has previously participated may generally participate again when their HBP balance is zero on January 1 of the year of the new withdrawal and all other HBP conditions are satisfied. Certain contributions made in the first 60 days of that year and designated as repayments for the previous year can affect the balance test.

10. What Happens If the HBP Conditions Are Not Met

An HBP withdrawal is not automatically tax-free merely because Form T1036 was submitted. The taxpayer remains responsible for satisfying the HBP conditions. If CRA determines that a withdrawal was not an eligible HBP withdrawal, part or all of the amount can be included in income for the year of the withdrawal.

11. Non-Resident and Cancellation Considerations

Residency can materially affect the HBP. An individual must generally be a resident of Canada at the time of the withdrawal and, where the home has not yet been acquired, throughout the period from the first eligible withdrawal until acquisition. Special rules apply if the participant becomes a non-resident after acquiring the qualifying home or if participation must be cancelled.

12. 2026 Step-by-Step HBP Decision and Withdrawal Roadmap

The safest process is to verify eligibility before requesting the RRSP withdrawal and to distinguish the HBP withdrawal rules from the separate FHSA rules.

Action Checklist:
  • Determine whether you satisfy the HBP first-time-home-buyer test or an exception applies.
  • Confirm that your HBP balance was zero on January 1 if you have participated previously.
  • Confirm Canadian residency and the qualifying-home conditions.
  • Obtain a written agreement to buy or build the qualifying home.
  • Review your RRSP contributions from the previous 89 days and understand the possible deduction limitation.
  • Estimate your available HBP amount, up to $60,000 per person.
  • Complete Form T1036 for each HBP withdrawal.
  • Give the completed form to the RRSP issuer.
  • If using an FHSA as well, independently verify FHSA qualifying-withdrawal requirements and complete Form RC725 with the FHSA issuer.
  • Track the first HBP withdrawal year because it determines the repayment timetable.
  • For a first 2026 withdrawal, prepare for the normal first repayment year of 2028 rather than relying on the temporary 2022-2025 deferral.
  • Keep all forms, withdrawal confirmations, RRSP receipts, purchase agreements and repayment records.

Frequently Asked Questions

The HBP currently allows an eligible individual to withdraw up to $60,000 in total from their RRSPs during the applicable participation period. A couple could potentially withdraw up to $120,000 combined if both people separately qualify and each has sufficient RRSP funds.

No. The 89-day rule is primarily a deduction limitation. Certain RRSP contributions made during the 89 days before an HBP withdrawal may not be deductible to the extent specified by CRA's formula. It is not a blanket rule that all RRSP funds must sit untouched for 89 days before an HBP withdrawal.

For a first HBP withdrawal made in 2026, the normal repayment rule applies because the temporary three-year repayment deferral only covers first withdrawals made from January 1, 2022 through December 31, 2025. The first required repayment year for a 2026 first withdrawal is generally 2028, and the repayment period is 15 years.

Yes. CRA's current guidance permits a qualifying FHSA withdrawal and an HBP withdrawal for the same qualifying home when the conditions for both programs are satisfied. FHSA qualifying withdrawals do not have to be repaid, while HBP withdrawals generally must be repaid over the HBP repayment period.

The contribution is not automatically disqualified from an RRSP deduction. Instead, CRA applies the 89-day rule to determine whether part of the contribution made in the 89 days before the HBP withdrawal is non-deductible based on the contribution amount and the fair market value remaining in the RRSP after the withdrawal, subject to detailed exclusions.

If an HBP condition is not met, the withdrawal can be treated as an ordinary RRSP withdrawal and some or all of the amount may have to be included in taxable income for the withdrawal year. If the home is not acquired by the required deadline, cancellation and repayment rules can also apply. Form T1036 does not guarantee HBP treatment if the statutory conditions are not satisfied.

Official Government & CRA References

2026 HBP Key Metrics

  • Maximum HBP Withdrawal
    $60,000 per person per participation period
  • Potential Couple HBP Amount
    Up to $120,000 when both spouses qualify separately
  • FHSA Lifetime Limit$40,000 per person
  • HBP Repayment Period
    15 years; 2026 first withdrawals normally start repayment in 2028

Related Tax Tools

FHSA vs RRSP Home Buyers' Plan Comparison→FHSA Newcomer Guide for Buying a Home→RRSP Contribution Room Guide→Canadian First-Time Home Buyer Tax Credit Guide→RRSP Withdrawal Tax Guide→

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