- Money taken out under the Home Buyers' Plan must be repaid to your RRSP over up to 15 years.
- For some first withdrawals, the 15-year repayment period starts in the fifth year after the year of withdrawal instead of the second.
- If you skip a minimum repayment, the shortfall is added to your income for that year.
You used your RRSP to help buy a home, and now the repayment side of the Home Buyers' Plan (HBP) is coming into view. It is easy to treat the withdrawal as a one-time event and forget that the money is a loan from your own retirement savings.
This article explains how the repayment schedule works, when it begins, how the yearly minimum is figured out and what happens if you fall behind. It is general information for Ontario buyers, not advice on your own tax return.
How much you can withdraw and how long you have to repay
The HBP withdrawal limit is currently $60,000. Whatever you take out must be repaid to your RRSP over up to 15 years.
Repaying is not the same as making an ordinary RRSP contribution. Each repayment is designated on Schedule 7 so that it counts as an HBP repayment for the year.
When the 15 years start
Normally the repayment period starts in the second year after the year of your withdrawal. There is a temporary exception. For a first HBP withdrawal made between January 1, 2022 and December 31, 2025, and under an extension for first withdrawals between January 1, 2026 and December 31, 2028, the 15-year period starts in the fifth year after the year of the first withdrawal instead of the second. The repayment period is up to 15 years either way; what changes is when it starts.
- Check the year you made your first withdrawal, not the year you closed.
- If your first withdrawal falls in the 2026 to 2028 window, confirm with the Canada Revenue Agency (CRA) or an accountant that the extension is in force for you.
- If you are unsure what your remaining balance is, the CRA or an accountant can confirm it for you.
How the yearly minimum is calculated
The first minimum repayment is about one-fifteenth of the amount you withdrew. After that, the minimum is your remaining balance divided by the number of years left.
Because the minimum is recalculated from the remaining balance, paying more than the minimum in a year lowers the balance and reduces what you have to pay in later years. You can also repay the full amount at any time.
Which year a payment counts for, and Schedule 7
A repayment counts for a given year if you make it in that year or in the first 60 days of the next year, and it is designated on Schedule 7. The designation on Schedule 7 is part of how a payment is treated as an HBP repayment.
If you pay and forget to designate the amount as an HBP repayment, it may not reduce your required repayment. Keep your receipts and check that the amount shows up on your return.
What happens if you miss a payment
If you do not make the minimum required repayment for a year, the shortfall is added to your income as RRSP income on line 12900 of your return. In plain terms, you pay tax on the amount you did not repay that year.
The missed amount is treated as taxable income, so it can raise your tax bill. You can repay the full amount at any time, which reduces later minimums. If you have missed a year or are unsure about your balance, an accountant can check your records and the CRA can confirm what it shows.
Using the HBP with an FHSA, and what to do next
The First Home Savings Account (FHSA) and the HBP can be used together for the same qualifying home, as long as you meet all the conditions at the time of each withdrawal. If you used both, track the two separately, because each has its own rules. For example, the HBP has a repayment schedule of up to 15 years, while a qualifying FHSA withdrawal is tax-free and does not have to be repaid.
- Find the year of your first HBP withdrawal and the amount you took out.
- Confirm when your 15-year repayment period starts.
- Work out your required minimum for the year: about one-fifteenth of the amount withdrawn for the first one, then the remaining balance divided by the years left.
- Decide whether to pay the minimum or more, and pay within the year or the first 60 days of the next one.
- Designate the repayment on Schedule 7 when you file.
- Ask an accountant if your situation is unusual, for example if you moved away or missed a year.
Frequently asked questions
Can I repay my Home Buyers' Plan faster than 15 years?
Yes. You can repay the full amount at any time, and doing so reduces your later minimums.
How is the minimum repayment worked out?
The first minimum is about one-fifteenth of the amount you withdrew. After that it is the remaining balance divided by the years left.
I made my repayment in January. Which year does it count for?
A repayment counts for a year if it is made in that year or in the first 60 days of the next year, and it is designated on Schedule 7. A January payment can therefore count for the previous year if you designate it that way.
What if I cannot afford the minimum this year?
If you do not make the minimum, the shortfall is added to your income as RRSP income on line 12900. Speak with an accountant about your options before filing.
Sources
- CRA – Withdrawals from your FHSAs — canada.ca
- CRA – What is the Home Buyers' Plan — canada.ca
- CRA – How to repay amounts withdrawn under the HBP — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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