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)
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)
After that five-year period, the 15-year repayment schedule will begin.(budget.canada.ca)
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