Lifelong Learning Plan and Home Buyers' Plan: 2024 Limit Increases

Key takeaways

• The Lifelong Learning Plan allows RRSP withdrawals for post-secondary education — up to $10,000 per year, $20,000 lifetime
• The Home Buyers' Plan withdrawal limit increased to $60,000 in 2024 (up from $35,000)
• HBP withdrawals after 2019 now have a 5-year repayment holiday (no repayments required for the first 5 years)
• LLP withdrawals must be repaid to the RRSP over 10 years, or 10% per year is added to income
• Both LLP and HBP cannot be combined with FHSA withdrawals for the same purpose

The Lifelong Learning Plan (LLP) and Home Buyers' Plan (HBP) are the two programs that allow RRSP withdrawals for specific purposes without immediate tax. The 2024 budget increased the HBP limit significantly and confirmed changes to the repayment start timing.

Lifelong Learning Plan details

The LLP allows withdrawals of up to $10,000 per year, to a maximum of $20,000 lifetime, to finance full-time education or training at a qualifying educational institution. The LLP applies to your own education or that of your spouse/common-law partner. The student must be enrolled full-time (or part-time if they qualify for the Disability Tax Credit) in a qualifying program.

LLP repayment begins two years after the last year of full-time enrollment or the fifth year after the first withdrawal, whichever is earlier. The minimum annual repayment is 10% of the total amount withdrawn. Missing a repayment in a given year adds that year's 10% to your income.

Home Buyers' Plan at $60,000

As of 2024, first-time homebuyers can withdraw up to $60,000 from their RRSP tax-free to buy or build a first home. Withdrawals must be repaid over 15 years. The repayment start was pushed back: if you used the HBP to buy a home between January 1, 2022 and December 31, 2025, you have a 5-year grace period before repayments begin. The first repayment is due in the 5th year after the year of withdrawal.