Home Buyers’ Plan 2027: How Much RRSP You Can Withdraw and Repay

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — The 2027 Home Buyers’ Plan limit, when a 2027 withdrawal must be repaid, what happens if you miss a payment and the deadlines to watch.

This guide is for first-time buyers in Toronto and the GTA who plan to use RRSP savings for a home in 2027. You will get the 2027 withdrawal limit, the exact year your repayments start, what happens if you miss one, and the deadlines that catch people out.

How much can you withdraw from your RRSP under the Home Buyers’ Plan in 2027?

You can withdraw up to $60,000 from your RRSPs under the Home Buyers’ Plan (HBP) in 2027, according to CRA. The limit is per person, so a couple who both qualify can take out up to $120,000 for the same home. The $60,000 cap is written into section 146.01 of the Income Tax Act. No change for 2027 had been announced as of November 2026.

The money comes out tax-free as long as you follow the rules. CRA says your RRSP issuer will not withhold tax on HBP withdrawals of $60,000 or less. You fill out Form T1036 for each withdrawal and give it to your bank or investment firm.

Unlike the First Home Savings Account, the HBP is a loan to yourself. You must put the money back into your RRSP over 15 years.

When do you have to repay a 2027 Home Buyers’ Plan withdrawal?

If your first HBP withdrawal is in 2027, your first repayment year is 2032. CRA has extended temporary relief to anyone whose first withdrawal is between 1 January 2026 and 31 December 2028. For them, the 15-year repayment period starts in the fifth year after the first withdrawal, instead of the second year under the older rules. CRA’s own example: a first withdrawal in 2026 means repayments start in 2031.

Source: Canada Revenue Agency, Home Buyers’ Plan pages (repayment relief for first withdrawals from 2022 to 2028), as of November 2026. Repayment years and amounts are my calculations; the minimum assumes no extra repayments.

The minimum each year is your remaining HBP balance divided by the years left. On a $60,000 withdrawal, that is $4,000 a year, or about $333 a month, starting in 2032. If you repay more in one year, CRA’s examples show your later minimums drop. CRA has not said what will apply to first withdrawals made in 2029 or later.

What happens if you miss a Home Buyers’ Plan repayment?

The shortfall is added to your income for that year. CRA says any part of the minimum you do not repay is reported as RRSP income on line 12900 of your return, and taxed at your normal rate. Your HBP balance drops by the same amount, so you are not chasing it later, but the money is gone from your RRSP for good.

To count as a repayment, you contribute to your RRSP during the year or in the first 60 days of the next year, then designate that amount as an HBP repayment on Schedule 7 of your tax return. A contribution you forget to designate is treated as a normal RRSP contribution.

Who qualifies for the Home Buyers’ Plan in 2027?

CRA sets five main conditions at the time you withdraw:

• First-time buyer: you did not live in a home that you or your current spouse owned, in the four calendar years before the withdrawal or in the current year up to 31 days before it. For a withdrawal in mid-2027, the look-back runs from 1 January 2023.
• Written agreement: you have signed an agreement to buy or build a home. CRA is clear that a mortgage pre-approval does not count.
• Move in: you intend to live in the home as your main residence no later than one year after buying it.
• Residency: you are a resident of Canada when you withdraw, and until you buy.
• Exceptions: the first-time buyer test does not apply after a recent marriage or common-law breakdown, or when buying a more accessible home for a person with a disability, under CRA’s conditions.

Because CRA’s test looks back only four years, people who sold a home years ago can often use the HBP again. For a fuller look at the 2026 rules, see my RRSP Home Buyers’ Plan guide for 2026.

What is the 89-day rule for RRSP contributions?

New money has to sit in your RRSP for a while before you take it out under the HBP. CRA says contributions made in the 89 days before an HBP withdrawal may not be deductible. In plain terms, if you add $10,000 to your RRSP and pull it out two months later for a down payment, you may lose the tax deduction on that $10,000.

The fix is timing. If you plan to close in 2027, make any extra RRSP contributions at least 90 days before you need to withdraw. Money that was already in your RRSP before that window is not affected.

What is the deadline to buy after a 2027 withdrawal?

You must buy or build the home before 1 October of the year after your first withdrawal. For a 2027 withdrawal, that is before 1 October 2028. CRA allows some extensions: if your first deal falls through, a new written agreement can extend the deadline to 1 October of the second year, and a home being built can qualify if your construction payments at least equal your withdrawals by the deadline.

If you miss the deadline and no extension applies, you must cancel your participation and put the money back into your RRSP, or it is added to your income. This matters for pre-construction buyers whose closing dates move. Check the builder’s firm and outside closing dates against your HBP deadline before you withdraw.

How does the 2027 RRSP limit affect a home purchase?

CRA lists the RRSP dollar limit for 2027 as $35,390. Your actual room depends on your earned income and any unused room, which appear on your notice of assessment. If you have room, contributing in early 2027 does two things for a buyer: the deduction can produce a tax refund toward closing costs, and the money can come out under the HBP once it has been in the plan longer than 89 days.

Keep the order straight. Contribute first, wait out the 89 days, then withdraw with Form T1036 once you have a signed agreement.

Should you use the Home Buyers’ Plan or the FHSA first?

For most first-time buyers, the FHSA first. CRA says you can use both for the same home if you meet the conditions for each. The FHSA is deductible and never repaid, while the HBP must be repaid over 15 years. Together they allow up to $100,000 per person before growth. My comparison of the FHSA vs the Home Buyers’ Plan lays out the order.

What can a $60,000 Home Buyers’ Plan withdrawal buy in the GTA?

On its own, $60,000 covers the minimum down payment on homes up to $850,000. That is 5% of the first $500,000 plus 10% of the next $350,000. A couple with $120,000 covers the minimum up to $1.45 million. Here is how that lines up with median sale prices from January to October 2026:

• Toronto E01 condo apartment, median $670,000: minimum down payment $42,000. One person’s HBP covers it.
• Brampton semi-detached, median $790,000: minimum $54,000. One HBP covers it.
• Mississauga semi-detached, median $885,000: minimum $63,500. Just above one person’s limit, so add an FHSA or savings.
• Whitby detached, median $977,000: minimum $72,700. A couple’s two HBPs cover it.
• Mississauga detached, median $1,225,000: minimum $97,500. A couple’s two HBPs cover it.

These figures are TRREB MLS data via REALM, January to October 2026, at the city or Toronto district level. Medians fell from the same period of 2025 in each of these markets, so the same $60,000 stretches further than it did a year ago. The down payment is not the only cash you need, though. With less than 20% down, the 8% sales tax on the mortgage insurance premium and land transfer tax are due on closing. See my guide to the minimum down payment in Ontario for any price.

What to do next

1. Check your RRSP balance and confirm you pass CRA’s four-year first-time buyer test for 2027.
2. Make any new RRSP contributions at least 90 days before you plan to withdraw.
3. Once your offer is firm, give your RRSP issuer Form T1036 for each withdrawal.
4. Mark 2032 in your calendar as your first repayment year if you first withdraw in 2027, and review the first-time home buyer checklist for Ontario.
5. Book a call with me to line up your withdrawal dates with your deposit and closing.

Frequently asked questions

Sources

• CRA: What is the Home Buyers’ Plan (limit and 2026–2028 repayment relief)
• CRA: How to participate in the Home Buyers’ Plan (conditions, 89-day rule, deadlines)
• CRA: How to repay the funds withdrawn under the Home Buyers’ Plan
• CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE
• CRA: Withdrawals and transfers out of your FHSAs (using FHSA and HBP together)
• Income Tax Act, section 146.01 (Home Buyers’ Plan, $60,000 limit)
• CMHC: Mortgage loan insurance costs (premiums and provincial sales tax)

Related reading

• The Bank of Canada Raised Rates: What It Means for GTA Buyers, Sellers and Owners
• Variable-Rate Mortgage After the Hike: How Much Your Payment Changes
• Should I Lock In My Variable Mortgage Before 2027?
• Mortgage Renewal in 2027 After the Rate Hike: Your Options in Ontario