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🇨🇦 2026 CRA RRSP Home Buyers' Plan & Form T1036 Rules

RRSP Home Buyers' Plan (HBP) Guide 2026

Complete 2026 guide to CRA's Home Buyers' Plan, including the $60,000 withdrawal limit, enacted five-year repayment grace period for 2026–2028 withdrawals, 15-year repayment rules and special non-resident treatment.

1. What Is the RRSP Home Buyers' Plan?

The Home Buyers' Plan (HBP) is a federal program that allows an eligible individual to withdraw up to $60,000 from their RRSPs to buy or build a qualifying home for themselves or a specified disabled person. An HBP withdrawal that meets all conditions is not included in income at the time of withdrawal, but the amount must generally be repaid over the HBP repayment period.

Key Framework Highlights:
  • The current maximum HBP withdrawal is $60,000 per individual.
  • A couple who both qualify can potentially withdraw up to $120,000 combined, provided each person independently meets the HBP requirements and withdraws from their own eligible registered plans.
  • An individual can make HBP withdrawals from more than one RRSP, subject to the overall $60,000 limit.
  • A qualifying home must be located in Canada.
  • The HBP can also be used to buy or build a qualifying home for a specified disabled person under the special rules.
  • You can use the HBP and make a qualifying FHSA withdrawal for the same qualifying home if you independently meet the conditions for each program.
Action Checklist:
  • Confirm that you are resident in Canada when making the HBP withdrawal.
  • Check the first-time home buyer or other qualifying exception.
  • Have a written agreement to buy or build a qualifying home, where required.
  • Confirm that you meet the occupancy and acquisition conditions.
  • Check your existing HBP balance before making another participation.
  • Complete Form T1036 before withdrawing funds.

2. The $60,000 HBP Withdrawal Limit

The current HBP withdrawal limit is $60,000 per individual. The limit applies to the total amount withdrawn under the HBP, including withdrawals from multiple RRSPs.

ScenarioMaximum HBP Amount
One eligible individual$60,000
Two eligible spouses or common-law partnersUp to $120,000 combined, with each person subject to their own $60,000 limit
Withdrawal exceeding the personal HBP limitThe excess is generally treated as a regular RRSP withdrawal and reported as income; the issuer may withhold tax on the excess

3. Who Is a First-Time Home Buyer for HBP?

CRA's first-time home buyer test is more precise than simply asking whether you have ever owned a house. You generally must not have lived in a qualifying home, owned or jointly owned by you or your current spouse or common-law partner, as your principal place of residence during the current calendar year before the withdrawal, excluding the 30 days immediately before the withdrawal, or at any time in the preceding four calendar years.

Ownership / Residence SituationHBP First-Time Buyer Result
You lived in a home you owned during the preceding 4 calendar yearsGenerally not a first-time home buyer for that withdrawal
You did not live in a home you owned during the relevant periodMay qualify, subject to all other HBP conditions
Your current spouse or common-law partner owned and you lived in the homeCan prevent first-time buyer status under the applicable test
You previously owned a home but did not live in it as your principal residenceOwnership alone does not necessarily fail the HBP first-time test; the residence conditions matter
Breakdown of marriage or common-law partnershipSpecial HBP rules can allow participation even where the ordinary first-time buyer test is not met

4. Canadian Residency Requirement for an HBP Withdrawal

To make an eligible HBP withdrawal, you must generally be resident in Canada at the time of the withdrawal. If you have not acquired the qualifying home before your first withdrawal, CRA requires you to remain resident in Canada throughout the period beginning with the first withdrawal and ending when you or the specified disabled person acquires the qualifying home.

SituationHBP Treatment
Canadian resident at withdrawal and qualifying home already acquiredCan satisfy the residency condition if all other HBP conditions are met
Canadian resident at withdrawal but home not yet acquiredMust generally remain resident in Canada until acquisition of the qualifying home
Non-resident at the time of withdrawalThe withdrawal is not an eligible HBP withdrawal
Become non-resident after withdrawal but before acquisitionSpecial cancellation or income-inclusion rules apply
Become non-resident after acquiring the qualifying homeSpecial 60-day / departure-year HBP repayment or income-inclusion rules apply

5. RRSP Contributions Made Within 89 Days Before HBP Withdrawal

The 89-day rule does not mean that every contribution made at least 89 days before an HBP withdrawal automatically becomes deductible. CRA specifically limits the deduction for contributions made during the 89-day period immediately before the withdrawal.

6. Temporary and Enacted Five-Year Repayment Grace Period

The normal HBP repayment period is up to 15 years and normally begins in the second year after the first withdrawal. The government first introduced a temporary five-year start for first withdrawals made between 2022 and 2025. Bill C-30 received Royal Assent on June 18, 2026 and extended the same five-year start to first withdrawals made in 2026, 2027 and 2028.

Year of First HBP WithdrawalFirst Repayment Year Under Current Rules
20202022
20212023
20222027
20232028
20242029
20252030
20262031
20272032
20282033
2029 and laterGenerally the second year after the first withdrawal unless a later legislative change applies

7. The 15-Year HBP Repayment Schedule

Once the applicable repayment period begins, the amount withdrawn is generally repaid over up to 15 years. The minimum amount for each year is tracked through the HBP statement and Schedule 7. Repayments are contributions to your RRSP, PRPP or SPP that you designate as HBP repayments; they are not deductible again as ordinary RRSP contributions.

HBP WithdrawalIllustrative Initial Annual Repayment
$15,000$1,000 per year over 15 years
$30,000$2,000 per year over 15 years
$60,000$4,000 per year over 15 years
Action Checklist:
  • Check the HBP balance in CRA My Account.
  • Determine the minimum repayment for the year.
  • Make an RRSP, PRPP or SPP contribution that you will designate as the repayment.
  • Report the repayment on Schedule 7.
  • Do not claim the designated repayment again as an ordinary RRSP deduction.

8. HBP Rules When You Become a Non-Resident

Moving outside Canada while participating in the HBP does not produce one universal outcome. CRA has different rules depending on whether you became non-resident before or after acquiring the qualifying home.

Departure ScenarioCRA Rule
Become non-resident before buying or building the qualifying homeYou can generally cancel the HBP participation or include the amount not repaid on line 12900 for the year of withdrawal, subject to the cancellation rules and deadlines
Become non-resident after buying or building the qualifying homeYou can repay the remaining HBP balance by the earlier of filing the return for the year you become non-resident or 60 days after becoming non-resident
Do not repay after becoming non-residentThe remaining HBP balance can be included as RRSP income on line 12900 for the year you become non-resident
Become non-resident in the year of first withdrawal and the home has not yet been acquiredSpecial cancellation-payment deadlines apply and can extend when the permitted home-acquisition period is extended

9. Non-Resident Before the Qualifying Home Is Acquired

If you make an HBP withdrawal and then become non-resident before the qualifying home is acquired, CRA provides special cancellation rules. This situation is different from leaving Canada after you already bought or built the qualifying home.

10. Non-Resident After the Qualifying Home Is Acquired

When an HBP participant has already bought or built the qualifying home and later becomes non-resident, CRA allows two main outcomes for the remaining HBP balance: repay it by the required deadline or include it in income.

11. What Happens When an HBP Repayment Is Missed?

If you do not make the minimum required HBP repayment for a year, the unpaid required amount is included in income on line 12900 of your tax return for that year. The HBP balance is reduced by the amount included as income.

SituationTax Treatment
Full minimum repayment designatedNo HBP amount is added to income for that minimum repayment
Partial repaymentThe unpaid portion of the required minimum is generally included in line 12900 income
No repaymentThe full minimum required repayment for the year is generally included in income
Remaining HBP balanceThe participant continues to have annual repayment obligations for the remaining participation period unless the balance has otherwise been included in income

12. Form T1036 and the HBP Withdrawal Process

Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP, is provided to the RRSP issuer when requesting an HBP withdrawal. The financial institution processes the withdrawal when the conditions are met.

13. HBP and FHSA Can Be Used for the Same Home

CRA currently allows an eligible taxpayer to make an HBP withdrawal from an RRSP and a qualifying withdrawal from a First Home Savings Account (FHSA) for the same qualifying home, provided the person independently satisfies the conditions for both programs.

Program2026 Treatment
HBPUp to $60,000 per individual from RRSPs, subject to HBP conditions and repayment obligations
FHSA qualifying withdrawalCan be tax-free when the FHSA qualifying-withdrawal conditions are met
Using bothPermitted for the same qualifying home when all HBP and FHSA conditions are independently satisfied

14. HBP Reporting: Schedule 7 and CRA Records

HBP participation is tracked through the annual tax-return process. Starting in the year of the first HBP withdrawal, participants generally have to file a tax return and complete Schedule 7 until the HBP has been fully repaid or the remaining amounts have been included in income.

Action Checklist:
  • Complete Part E of Schedule 7 in the first-withdrawal year.
  • Complete the appropriate HBP section of Schedule 7 in later years.
  • Designate qualifying contributions as HBP repayments on Schedule 7.
  • Do not claim a designated HBP repayment again as a regular RRSP deduction on line 20800.
  • Check CRA My Account for the HBP statement of account.
  • Keep supporting contribution and repayment records.

15. Practical 2026 HBP Roadmap for Residents and Emigrants

The HBP is relatively straightforward when the participant remains a Canadian resident, but the timing of a move outside Canada can create different obligations.

16. Common HBP Mistakes in 2026

The most common HBP errors involve misunderstanding the 89-day contribution rule, treating the five-year grace period as universal regardless of withdrawal year, and applying the same non-resident rule to every departure scenario.

Action Checklist:
  • Saying the HBP grace period is five years for every withdrawal year
  • Failing to recognize that the enacted extension now covers first withdrawals in 2026–2028
  • Calling the 89-day rule a simple 'funds must sit 89 days' requirement
  • Ignoring the RRSP FMV comparison for recent contributions
  • Making a new HBP withdrawal while non-resident
  • Ignoring the requirement to remain resident in Canada when the qualifying home has not yet been acquired
  • Assuming every emigrant has exactly 60 days to repay the HBP balance
  • Ignoring the earlier tax-return filing deadline in the non-resident-after-acquisition situation
  • Treating pre-acquisition non-residency and post-acquisition non-residency as the same rule
  • Forgetting to report HBP activity on Schedule 7
  • Claiming HBP repayments again as ordinary RRSP deductions
  • Assuming the $60,000 limit applies separately to every RRSP
  • Forgetting that excess HBP withdrawals can be treated as ordinary RRSP income
  • Ignoring special first-time buyer rules for a current spouse/common-law partner
  • Failing to distinguish ordinary repayment from HBP cancellation

Frequently Asked Questions

The HBP allows an eligible individual to withdraw up to $60,000 from their RRSPs. Two eligible spouses or common-law partners can potentially withdraw up to $120,000 combined, with each person subject to their own $60,000 limit.

Yes. Bill C-30 received Royal Assent on June 18, 2026 and extended the five-year repayment start for first HBP withdrawals made in 2026, 2027 and 2028. For a first withdrawal in 2026, the first required repayment year is generally 2031. The five-year rule also continues for first withdrawals made in 2022 through 2025.

CRA does not simply require RRSP contributions to sit for 89 days. Contributions made during the 89 days before an HBP withdrawal can have their deductibility limited by the FMV remaining in the RRSP immediately after the withdrawal. The full CRA calculation should be used for each withdrawal.

It depends on timing. If you become non-resident after acquiring the qualifying home, you can generally repay the remaining HBP balance by the earlier of filing your departure-year return or 60 days after becoming non-resident; otherwise the remaining balance can be included in income for that year. If you become non-resident before acquiring the home, separate cancellation and income-inclusion rules apply.

Yes. You must generally be resident in Canada when making the HBP withdrawal. If the qualifying home has not yet been acquired before the first withdrawal, you generally must also remain resident in Canada until you or the specified disabled person acquires the qualifying home.

The minimum repayment amount that you fail to make is generally included in your taxable income on line 12900 for that year. You continue to have HBP obligations for the remaining repayment period unless the balance has otherwise been repaid or included in income under the applicable rules.

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2026 HBP Key Metrics

  • Maximum HBP Withdrawal$60,000 per individual
  • Repayment PeriodUp to 15 years
  • 2026–2028 Grace Period
    First repayments generally begin in the 5th year after first withdrawal
  • Withdrawal FormForm T1036

Related Tax Tools

FHSA vs RRSP Home Buyers' Plan Comparison→First-Time Home Buyers' Credit Guide→FHSA Newcomer Guide for Buying a Home→Canada Departure Tax & Leaving Canada Guide→

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