Compliance

RRSP Home Buyers’ Plan Grace Period Extended: What That Means for First-Time Homeowners

The repayment grace period for withdrawals under the RRSP Home Buyers’ Plan has been extended—learn the timelines and how homeowners benefit.

By NomadicTax Research Team • 5-8 min read • July 16, 2026

## Understanding the Home Buyers’ Plan (HBP) The HBP allows qualifying individuals to withdraw funds from their Registered Retirement Savings Plan (RRSP) to buy or build a home. Withdrawal amounts must typically be repaid over 15 years.([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/tm-mf-en.html?utm_source=openai)) ## Recent Extension from Spring Economic Update 2026 Bill C-30 has **extended the grace period** during which homeowners are **not required to begin repayments** from two years to **five years**—but only for first withdrawals made between January 1, 2026 and **December 31, 2028**.([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/tm-mf-en.html?utm_source=openai)) After that five-year period, the 15-year repayment schedule will begin.([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/tm-mf-en.html?utm_source=openai)) ## Who Benefits Most? - First-time homebuyers withdrawing from their RRSP between 2026–2028. - Those who want more breathing room financially before repayments begin—especially helpful for people with tight budgets or in high-cost housing markets. ## Example Scenario Sarah made her first HBP withdrawal in mid-2026. Under new rules, she has until end-2028 to meet the five-year non-repayment grace period, delaying her repayment start until **three years after withdrawal**. Under old rules, she’d have needed to start repayments just two years after withdrawal. ## How to Use This Advantage - Plan withdrawals in eligible windows: **2026, 2027 or 2028**. If you're considering purchasing soon, waiting until 2026 helps you get an extended grace period. - Factor the delayed repayments into your budget: it's more time before payments come due. - Keep records of when you made your first withdrawal—important for future reference with CRA. ## What To Watch Out For - Withdrawal date matters. If you withdraw after December 31, 2028, the **grace period returns** to two years. - Remember the repayment period total is still **15 years**; only the non-repayment period has changed. --- Category: **Compliance** TaxHome: Canada Author: NomadicTax Research Team ReadTime: 5-8 min Published: true