Canada Home Buyers' Plan 2027: $35,000 limit, repayment rules, and FHSA combination strategy
The RRSP Home Buyers' Plan (HBP) allows first-time buyers to withdraw up to $35,000 per person tax-free toward a home purchase. This guide covers the 2024 limit increase from $25,000 to $35,000, the 15-year repayment schedule, what happens if you miss a repayment, and how to stack the HBP with the FHSA for maximum benefit.
The RRSP Home Buyers' Plan increased to $35,000 per person in April 2024 — a 40% jump from $25,000. Combined with the FHSA, a couple buying their first home now has access to up to $150,000 in registered savings for a down payment. Here is how to use every dollar of it.
HBP at a glance — 2027
| Feature | Details |
|---|---|
| Withdrawal limit (per person) | $35,000 (increased from $25,000 in April 2024) |
| Withdrawal limit (couple) | $70,000 combined ($35,000 each) |
| 90-day seasoning rule | Funds must be in RRSP for 90 days before withdrawal |
| Repayment grace period | 2 years after withdrawal year before repayments begin |
| Repayment period | 15 years (1/15 of balance per year) |
| Missed repayment consequence | That year's share added to taxable income |
| Can combine with FHSA? | Yes — both can be used for the same qualifying home |
| Can use more than once? | Yes — if HBP repaid and first-home criteria met again |
FHSA + HBP stacking strategy
Tax-deductible contributions. Tax-free withdrawal. No repayment required. Open as early as possible — carry-forward $8,000/yr max.
RRSP withdrawal. Tax-free at withdrawal. Repay over 15 years or pay income tax on unrepaid amounts.
$80,000 FHSA + $70,000 HBP. Both can be used for the same purchase, same closing date.
HBP repayment schedule: $35,000 withdrawal
| Year | Minimum annual repayment | Running HBP balance |
|---|---|---|
| Withdrawal year + 1–2 | $0 (grace period) | $35,000 |
| Year 3 | $2,333 | $32,667 |
| Year 5 | $2,333 | $27,999 |
| Year 10 | $2,333 | $16,665 |
| Year 17 (final) | $2,333 | $0 |
Repayment is designated on your tax return via CRA Form T1028. You can repay more than the minimum each year to pay it off faster.
External references
- CRA — Home Buyers' Plan overview
- CRA — HBP repayment rules
- CRA — Form T1028 (HBP repayment designation)
- FCAC — Mortgage default insurance overview
Common questions
What is the current Home Buyers' Plan withdrawal limit in 2027?
The HBP withdrawal limit was raised to $35,000 per person (effective April 2024), up from $25,000. A couple buying together can each use the HBP, for a combined maximum of $70,000. The funds must come from your own RRSP (not a spousal RRSP unless you are the annuitant), must have been in the RRSP for at least 90 days, and must be used for a qualifying first home. The full rules are at the CRA Home Buyers' Plan page.
How does the HBP repayment schedule work?
After withdrawing from your RRSP under the HBP, you have 2 years before repayment begins, then must repay the full amount over 15 years — in equal annual installments. Example: $35,000 withdrawal ÷ 15 years = $2,333/year minimum repayment. Each year's repayment is designated on your tax return using Form T1028. If you miss a year's repayment, that year's share is added to your taxable income — effectively you pay income tax on it. Repayments can be made in any amount above the minimum at any time.
Can I use both the FHSA and HBP for the same home purchase?
Yes — this is the optimal strategy for first-time buyers. The FHSA and HBP can both be used for the same qualifying home purchase. FHSA withdrawals are completely tax-free (no repayment required). HBP withdrawals are tax-free at withdrawal but must be repaid over 15 years. A couple can access: FHSA up to $40,000 each ($80,000 combined) + HBP $35,000 each ($70,000 combined) = up to $150,000 combined in registered account funds toward a down payment. See the FHSA contribution limits guide for stacking details.
What is a "qualifying home" for the HBP?
A qualifying home is: (1) located in Canada; (2) a housing unit — single-family, semi-detached, townhouse, mobile home, condo, or co-op apartment; (3) intended as your principal place of residence within 1 year of buying/building. You must not have owned a home that you occupied as a principal residence at any point in the preceding 4 calendar years (or if separated/divorced, different rules apply). A share in a co-operative housing corporation also qualifies if it gives you an equity interest. Full definition at the CRA qualifying home definition.
What happens to HBP repayments if I become a non-resident or die?
If you become a non-resident of Canada after withdrawing under the HBP, the full remaining balance becomes due and is included in your income for the year you became a non-resident (unless you repay it before that date). On death, the full HBP balance outstanding becomes income on the final tax return — unless it is transferred to a surviving spouse's RRSP. These are significant tax risks for anyone planning to emigrate. Review these rules carefully with a tax advisor. CRA repayment rules for special situations.
Can I use the HBP more than once?
Since 2019, the HBP can be used more than once — but only if your previous HBP balance is fully repaid and you meet the first-time buyer definition again (no home ownership in the preceding 4 years). This means if you used the HBP, repaid it, later sold your home, and have not owned a home for 4 years, you can use the HBP again for your next home purchase. The $35,000 per-person limit applies each time. CRA eligibility rules cover the second-use conditions.
Calculate your CMHC premium and monthly payment after your down payment with the Canadian mortgage calculator, explore the FHSA complete guide, or read about FHSA contribution limits.