Canada Home Buyer Plan for 2025: The Canada Home Buyers’ Plan (HBP) has received a major boost in 2025, allowing eligible Canadians to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home. This updated plan gives first-time buyers more financial flexibility, especially as housing prices continue to challenge new homeowners. In this guide, we’ll walk you through everything you need to know — eligibility criteria, deadlines, how to apply, repayment rules, and more.
Canada Home Buyer Plan for 2025
| Feature | Details |
|---|---|
| Maximum Withdrawal | $60,000 per individual (previously $35,000) |
| Couples’ Total Limit | $120,000 combined from individual RRSPs |
| Tax-Free Withdrawal | Yes, if repaid within the required timeline |
| Repayment Period | 15 years, with a 5-year grace period for 2022-2025 withdrawals |
| First Repayment Year | Fifth year after withdrawal (e.g., 2027 for 2022 withdrawals) |
| Official Website | Canada.ca HBP page |
The $60,000 Canada Home Buyers’ Plan for 2025 is a game-changer for first-time buyers, especially when combined with the FHSA. With housing affordability still a pressing issue, these government-backed savings options provide valuable relief.
Make sure you meet the eligibility requirements, follow the withdrawal and repayment steps carefully, and keep an eye on deadlines to avoid unexpected taxes.
What Is the Canada Home Buyers’ Plan (HBP)?
The Home Buyers’ Plan (HBP) is a government initiative that lets Canadians tap into their RRSPs to help fund the purchase or construction of a qualifying home. The amount withdrawn is not taxed at the time of withdrawal, provided it is repaid over time.
As of April 16, 2024, the maximum withdrawal limit was increased from $35,000 to $60,000 per person. For couples, this means up to $120,000 can be withdrawn, making homeownership more accessible.
Who Is Eligible in 2025?
To qualify for the Home Buyers’ Plan in 2025, you must meet the following criteria:
First-Time Homebuyer
You must not have owned a home in the last 4 years. This includes any property you or your spouse/common-law partner occupied as your principal residence.
Note: If you are helping a relative with a disability buy a home, the first-time homebuyer rule may not apply.
Written Purchase Agreement
You must have a signed agreement to either buy or build a qualifying home in Canada.
Canadian Residency
You need to be a Canadian resident at the time of withdrawal and up until the home is purchased or built.
Intend to Occupy
The home must become your principal residence within one year of buying or completing the construction.
RRSP Contribution Timing
Any funds you withdraw under the HBP must have been in your RRSP for at least 90 days before the withdrawal date.
Important Dates and Repayment Schedule
Withdrawal Deadline
The home must be acquired or construction completed by October 1 of the year after the withdrawal.
Repayment Timeline
You have 15 years to repay the full amount into your RRSP.
- Typically, the first repayment begins two years after withdrawal.
- But for withdrawals made between January 1, 2022 and December 31, 2025, the repayment period starts in the fifth year.
Example: If you withdrew $60,000 in 2023, you begin repayment in 2028.
Annual Minimum Repayment
Each year, you must repay 1/15th of the total amount withdrawn. For a $60,000 withdrawal, that’s $4,000 per year.
Missed repayments are added to your taxable income.
Canada Home Buyer Plan for 2025: How to Apply for the HBP in 2025
Here’s a step-by-step guide:
Step 1: Confirm Eligibility
Ensure you meet the first-time buyer definition and other eligibility rules.
Step 2: Complete Form T1036
Download and fill out Form T1036, “Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP.”
Step 3: Submit the Form to Your RRSP Provider
Your RRSP issuer will process the withdrawal and issue you a T4RSP slip, which you’ll use when filing your taxes.
Combining HBP With FHSA: A Powerful Strategy
You can use the HBP alongside the First Home Savings Account (FHSA), a newer program that allows you to save up to $40,000 tax-free.
Using both accounts together:
- FHSA: $40,000
- HBP (RRSP): $60,000
- Total: Up to $100,000 in tax-advantaged savings per individual
Learn more about the FHSA here.
Additional Tips and Warnings
- Make Early Repayments: You can repay more than the annual minimum to reduce your loan term.
- Track Your Repayments: The CRA sends an annual HBP Statement of Account with your Notice of Assessment.
- Non-Repayment = Taxable: If you skip a repayment, the missed portion becomes taxable for that year.
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FAQs on Canada Home Buyer Plan for 2025
Can I use the HBP more than once?
Yes, but only if your previous HBP is fully repaid and you meet the other eligibility criteria again.
What if I withdraw less than $60,000?
You’re only required to repay what you withdrew. The $60,000 is a maximum limit, not a requirement.
Can I use the HBP to buy a home with a family member?
Yes, as long as each individual is eligible and contributing from their own RRSP.
What happens if I sell the home early?
There’s no penalty, but you must still continue repaying the RRSP amount annually.
How is the withdrawal taxed?
Withdrawals are not taxed if repaid according to the schedule. Otherwise, the missed portion becomes taxable.
