Published 17 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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First-time buyers can withdraw up to $60,000 each from their RRSPs tax-free under the Home Buyers’ Plan and must repay it over 15 years. The five-year grace period only applied to withdrawals from 2022 to 2025, so money taken out in 2026 starts repayment in 2028, at least one-fifteenth a year.
The Home Buyers’ Plan lets a first-time buyer borrow from their own RRSP, tax-free, to buy a home. It is not free money. It is a loan to yourself that has to go back into your RRSP.
How much you can take out
Each eligible person can withdraw up to $60,000. The limit rose from $35,000 on April 16, 2024. A couple who both qualify can withdraw up to $120,000 between them.
What changed for 2026
For withdrawals made between January 1, 2022 and December 31, 2025, Ottawa temporarily stretched the grace period before repayment to five years. That extension has ended.
A withdrawal made in 2026 is back on the standard schedule: repayment starts in the second year after the withdrawal, so 2028. If you took $60,000, the minimum is $4,000 a year for 15 years.
Repayment rules to plan around
- Minimum: each year’s minimum is one-fifteenth of what you withdrew.
- Missed payments: the missed amount is added to your taxable income for that year and does not extend the schedule.
- No new deduction: repayments go into your RRSP but you don’t get a deduction for them, because you already claimed one when you first contributed.
- Designating contributions: you can designate part of a year’s RRSP contribution as a repayment and deduct the rest normally.
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The 90-day rule
Money has to sit in your RRSP for at least 90 days before you withdraw it under the plan, or you lose the deduction on that contribution. Buyers who top up an RRSP right before closing often trip on this.
Who counts as a first-time buyer
You don’t qualify if you lived in a home that you owned at any time in the current year or the previous four calendar years. It also counts against you if your current spouse or common-law partner owned the home you lived in, even if your name was not on title. CRA’s own example is a person who sold in 2022 and tried to withdraw in 2025. The withdrawal became taxable income because they had to wait until 2027.
How to withdraw
Complete Form T1036 and give it to your RRSP issuer. You need a written agreement to buy or build a qualifying home, and you must intend to live in it within a year.
HBP or FHSA first?
For most buyers, the FHSA goes first because nothing is repaid. The Home Buyers’ Plan then fills the gap. Treat the future repayment as a fixed monthly cost when you work out what you can afford.
The takeaway
Treat a Home Buyers’ Plan withdrawal as a 15-year bill, respect the 90-day rule on new RRSP money, and confirm your first-time buyer status before you withdraw.
Talk it through with me
Get a first-time buyer plan
Tell me your savings, income range and target area. I will send a realistic price range and next steps.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
How much can I withdraw under the Home Buyers’ Plan in 2026?
Up to $60,000 per eligible person, or $120,000 for a couple who both qualify.
When do I start repaying a 2026 withdrawal?
In 2028, the second year after the withdrawal. The five-year grace period only applied to withdrawals from 2022 to 2025.
What if I miss a repayment?
That year’s minimum is added to your taxable income.
Can I use the Home Buyers’ Plan if I owned a home before?
Only if you have not lived in a home you or your spouse owned in the current year or the previous four calendar years, unless a specific exception applies.
Sources
- Canada Revenue Agency — Home Buyers’ Plan — withdrawal limit, eligibility and repayment
- Canada Revenue Agency — avoid common Home Buyers’ Plan mistakes — the four-year rule and spousal ownership
Related reading
- Minimum Down Payment in Ontario 2026: The Exact Amount for Every Price Point
- Deposit vs Down Payment in Ontario: Not the Same Thing
- First Home Savings Account (FHSA) in 2026: how it works for Toronto buyers
- FHSA vs RRSP Home Buyers’ Plan: which to use first (and how to stack them)
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.