Home Buyers' Plan Repayment Rules: What Changed in 2026

Withdrawing from your RRSP under the Home Buyers' Plan felt straightforward when you did it. The repayment side is where buyers consistently run into trouble — sometimes years after moving in, when the first CRA notice arrives.

The rules changed materially in 2024 and again in 2026, and the timing of your withdrawal determines which set of rules applies to you.

The Current Withdrawal Limit

As of April 16, 2024, the maximum RRSP withdrawal under the Home Buyers' Plan increased from $35,000 to $60,000 per individual. For a purchasing couple, this means up to $120,000 in combined RRSP funds can be withdrawn tax-free for a single qualifying home purchase, provided both individuals meet the eligibility tests.

This is the amount before repayment obligations kick in. The $60,000 acts as a zero-interest loan from your own retirement savings — borrowed tax-free, but expected back.

The Grace Period: Pre-2026 vs. Post-2026 Withdrawals

This is where buyers get confused, and where the stakes are real.

Withdrawals made between January 1, 2022, and December 31, 2025: The federal government provided a temporary five-year grace period before repayments must begin. If you withdrew in 2024, for example, your first mandatory repayment year does not start until 2029 (five years after the year of withdrawal). This relief was designed to ease cash flow pressure during the most financially stretched years of early homeownership.

Withdrawals made on or after January 1, 2026: The temporary grace period has expired. For withdrawals made in 2026 and beyond, the standard two-year rule applies. Repayments must begin in the second calendar year after the year of withdrawal. If you withdraw in 2026, your first repayment year is 2028.

If you're planning your purchase timeline in Alberta right now and haven't withdrawn yet, this matters. A 2025 withdrawal gives you until 2030 before repayments start. A 2026 withdrawal means repayments begin two years sooner.

How the Repayment Schedule Works

The annual repayment minimum is calculated as 1/15th of the total amount you withdrew.

• Withdrew $60,000 → minimum annual repayment of $4,000
• Withdrew $35,000 → minimum annual repayment of ~$2,333
• Withdrew $20,000 → minimum annual repayment of ~$1,333

You make repayments by contributing to any RRSP account (not necessarily the same one you withdrew from) and designating that contribution as an HBP repayment on Schedule 7 of your T1 income tax return.

This designation step is critical. If you make an RRSP contribution without completing Schedule 7 to mark it as an HBP repayment, the CRA treats your contribution as a regular RRSP deposit (which generates a deduction), but your HBP balance remains unpaid. The shortfall then gets added to your taxable income for that year.

What Happens If You Miss a Payment

If you fail to make the minimum repayment in a given year, the shortfall — not the total outstanding balance, just the missed minimum — is added to your taxable income for that tax year.

Example: You withdrew $60,000 in 2025. In your first repayment year, you're required to contribute $4,000 back to your RRSP and designate it as an HBP repayment. If you only contribute $1,000 and designate it correctly, the remaining $3,000 is included in your income for that year. At a 37% marginal rate, that's roughly $1,110 in extra taxes you didn't plan for.

The penalty compounds if you miss repayments repeatedly. Your outstanding HBP balance remains, future minimum annual repayments continue to be calculated on the original withdrawal amount (not the remaining balance), and each shortfall hits your taxable income.

Making Extra Repayments

You can repay more than the minimum in any year. Extra repayments reduce your outstanding HBP balance, which reduces your future annual minimums.

If you inherit money, receive a bonus, or simply want to eliminate the repayment obligation faster, you can pay the entire remaining balance in a single year. Designate the full lump-sum RRSP contribution as an HBP repayment on Schedule 7, and your balance goes to zero — no further annual minimums apply.

Special Circumstances: Death, Disability, and Selling

Death: If the HBP account holder dies before fully repaying, the remaining balance becomes income in the year of death, reported on the final tax return.

Disability: If you develop a severe and prolonged disability that prevents you from occupying the home, the CRA may allow you to maintain HBP eligibility on a replacement home. This requires documentation and CRA approval.

Selling before repayment is complete: There is no accelerated repayment trigger when you sell your home. Your annual minimum repayment continues on the original schedule regardless of whether you still own the qualifying home.

FHSA vs. HBP: A Quick Comparison

If you're still in the accumulation phase and weighing which account to prioritize for your Alberta home purchase:

The FHSA withdrawal is strictly superior for buyers who haven't yet maxed it out — no repayment obligation means no risk of missing minimums. Once your FHSA is maximized, the HBP provides additional registered-account leverage for the down payment.

Coordinating Both on the Same Alberta Purchase

Federal rules explicitly permit using FHSA and HBP funds on the same qualifying home purchase. A couple buying in Calgary or Edmonton can stack $40,000 each from their FHSAs (tax-free, no repayment) and $60,000 each from their RRSPs via the HBP (tax-free withdrawal, 15-year repayment schedule) for a combined $200,000 in registered-account capital.

The Alberta First-Time Home Buyer Guide includes a sequencing framework for timing both withdrawals relative to your Alberta contract conditions and your lawyer's closing requirements — including the interplay between your HBP withdrawal date, the possession date, and the AREA contract's strict 12-noon deadline.

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