Home Buyers' Plan 2022: $35,000 Limit and Repayment Rules

Key takeaways

• The RRSP Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 (pre-2024; $60,000 from 2024) tax-free from their RRSP to buy or build a first home
• Withdrawals must be repaid to the RRSP over 15 years beginning the second year after the year of withdrawal
• The RRSP must have held the funds for at least 90 days before withdrawal
• Both spouses can use the HBP — up to $70,000 (or $120,000 post-2024) combined for joint buyers
• Missing a repayment adds that year's minimum (1/15 of the total) to your taxable income

The Home Buyers' Plan remains a useful first-time buyer strategy, though the 2023 introduction of the FHSA changed the planning calculus. Understanding both programs — and how they interact — is essential before making an RRSP withdrawal for a home purchase.

HBP vs. FHSA

HBP withdrawals are interest-free loans from your RRSP — you must repay the amount over 15 years or include the unpaid balance in income each year. FHSA qualifying withdrawals are truly tax-free — no repayment required. A buyer with both an FHSA and RRSP should generally exhaust their FHSA first, then use the HBP for additional funds needed.

Critically: you can use both the FHSA and the HBP for the same home purchase. This lets a buyer access up to $40,000 of FHSA funds (tax-free, no repayment) plus $60,000 of RRSP funds through the HBP (repayable) — a combined $100,000 of registered savings for one purchase.

The 90-day seasoning rule

RRSP funds must have been contributed at least 90 days before withdrawal under the HBP. Contributions made in the 90 days before withdrawal cannot be used for the HBP and may not even generate an RRSP deduction in that year. Do not contribute to your RRSP in January and immediately withdraw under the HBP in February — the 90-day rule will prevent it.

Repayment mechanics

HBP repayments are not regular RRSP contributions — they are designated repayments tracked on Schedule 7 (RRSP and PRPP Contributions and Transfers) of your T1 return. If you contribute to your RRSP in a given year, you must designate how much is a regular contribution and how much is an HBP repayment. Otherwise, the entire contribution is treated as a regular RRSP contribution and the HBP repayment is missed, triggering income inclusion.