What’s changed in the Home Buyers’ Plan (HBP)?
Under Bill C-30, which received Royal Assent on June 19, 2026, the government has extended the grace period for new HBP withdrawals made from RRSPs between 2026 and 2028, moving the time when repayment must begin from 2 years after withdrawal to 5 years. (canada.ca)
Who can benefit
- Individuals making a first home purchase or building a home who withdraw funds from RRSPs under the HBP during 2026-2028.
- Must intend to qualify as an eligible home buyer under the RRSP withdrawal rules (first-time homebuyer or eligible for a disabled person’s home purchase).
Practical uses of the extended grace period
- Liquidity planning: You can delay repayments over a longer period, freeing up cash for other pressing needs (e.g. renovations, moving expenses).
- Staggered contributions: Spread repayments gradually over 5 years rather than rushing within first 2 years—can smooth tax impact and RRSP contribution planning.
- Tax bracket management: Use delayed repayment in years when your income may be lower to minimize the tax impact of including required payments.
What you must do to qualify
- Withdraw funds from RRSP between 2026-2028 under HBP.
- Your home completion date generally must fall within certain limits defined in the legislation; double-check whether your specific case is covered. (civicsproject.org)
Examples
- You withdraw CA$60,000 from your RRSP in 2026, expecting to buy a home. Under old rules, you would begin repayment in 2028 (2-year grace). Under new rules, repayment can begin in 2029, giving you 3 extra years of breathing room.
- For a couple purchasing jointly and each withdrawing from their RRSPs, both members benefit from the grace period extension.
Watch-outs and considerations
- Interest/dividends and RRSP growth still matter: delaying repayment doesn’t mean skipping it—since HBP still requires full repayment over 15 years.
- Tax events: the longer grace period may push required payments into years with higher tax rates; plan to avoid surprises.
- RRSP contribution room: ensure that delayed repayments are possible under RRSP rules and that unused contributions or deductions are optimized.
Actionable advice for prospective homebuyers
- Plan RRSP withdrawals early: decide if you’ll be making a withdrawal in 2026-2028 and consider timing relative to home purchase.
- Map your repayment schedule: determine what fit best over 5 years, considering your income trajectory.
- Budget accordingly: factor other home purchase costs (closing, maintenance) into the extra time.
- Consult professional advice: ensure your specific province/territory doesn’t have additional rules, and your tax preparer understands the new grace period.