Using the RRSP Home Buyers' Plan in BC: Limits, Repayment, and Stacking It With an FHSA

You can withdraw up to $60,000 from your RRSP under the Home Buyers' Plan (HBP) to buy or build a qualifying home in British Columbia. A couple who both qualify can withdraw $120,000 combined. You can also take a qualifying First Home Savings Account (FHSA) withdrawal on the same purchase, which takes a single buyer to $100,000 of registered down-payment capacity and a couple to $200,000 before investment growth.

According to the Canada Revenue Agency, the current HBP withdrawal limit is $60,000 per person. The withdrawal is not taxed at the time you take it out. You repay it to your RRSP over 15 years. That repayment is an interest-free loan from your own retirement savings, not a grant.

In Metro Vancouver and the Fraser Valley, that stack is how many first-time buyers close a 5% to 10% down payment on a condo or townhome. Pair it with B.C.'s first time home buyers' Property Transfer Tax program and a clear home buying process, and the cash you need at the lawyer's office drops in a measurable way.

The Home Buyers' Plan is a federal program that lets an eligible first-time buyer withdraw money from a Registered Retirement Savings Plan to buy or build a qualifying home in Canada. Your RRSP issuer does not withhold tax on an eligible withdrawal of $60,000 or less.

The money is still yours. The CRA treats the withdrawal as a loan you make to yourself. You put the same dollars back into an RRSP, PRPP, or SPP over 15 years and designate those deposits as HBP repayments on Schedule 7.

The HBP is not a B.C. program. The same federal rules apply in Langley, Surrey, Vancouver, and every other province. What changes locally is how far $60,000 goes against a Fraser Valley townhome versus a Metro Vancouver detached house.

What counts as a qualifying home

A qualifying home is a housing unit located in Canada, including a home under construction. Single-family houses, semi-detached homes, townhouses, condos, mobile homes, and co-op shares that give you possession of a Canadian unit all qualify.

Recreational vehicles, timeshares, and homes outside Canada do not qualify. An investment property you do not intend to occupy as your principal residence also fails the test. You must intend to occupy the home as your principal place of residence no later than one year after you buy or build it.

The HBP withdrawal limit is $60,000 per person per participation period. That limit rose from $35,000 in the 2024 federal budget. You cannot withdraw more than $60,000 in total under one participation. Any excess is taxable income and is subject to withholding tax.

Each spouse or common-law partner withdraws from their own RRSP. If both of you meet the first-time buyer test, the household cap is $120,000. You cannot pull from your partner's plan.

The 89-day contribution rule

RRSP contributions made in the 89 days before an HBP withdrawal can lose their tax deduction. The CRA limits the deduction to the amount that remains in that same RRSP after the withdrawal. In plain terms, new money parked in an RRSP just before you file Form T1036 may not give you the deduction you expected.

Plan contributions at least 90 days before you need the cash at closing. If your completion date is June 15, do not dump $20,000 into an RRSP in May and expect a clean HBP withdrawal plus a full deduction.

Locked-in and group RRSPs

You must be the annuitant of the RRSP you withdraw from. Some group RRSPs and locked-in plans block HBP withdrawals. Confirm with the issuer before you write an offer that depends on those dollars.

You qualify as a first-time home buyer if, during the current calendar year before the withdrawal (except the 30 days immediately before it) and during the previous four calendar years, you did not live in a qualifying home as your principal residence that you or your current spouse or common-law partner owned or jointly owned.

The CRA's own example is direct. If you withdraw on July 31, 2026, the look-back runs from January 1, 2022 to June 30, 2026. Living in a home you owned in that window knocks you out, unless an exception applies.

You can use the HBP more than once

Prior ownership does not lock you out forever. Once four full calendar years have passed without you occupying a home you or your current spouse owned, you can qualify again. You must also have an HBP balance of zero on January 1 of the year you make a new withdrawal.

If you still owe money from a previous HBP participation, repay that balance by December 31 of the year before the new withdrawal. The CRA flags this as a common error. A leftover $10,000 from 2015 will block a new $60,000 withdrawal in 2026.

Exceptions that drop the first-time test

•       You are a specified disabled person buying or building a more accessible home.

•       You are buying or building for a specified disabled person, or helping that person buy or build.

•       Breakdown of a marriage or common-law partnership can reopen access after you have lived separate and apart for at least 90 days, subject to the CRA's post-2019 rules.

Each partner is assessed separately. One spouse who owned a home in the look-back window does not automatically disqualify the other from using their own RRSP under the HBP, as long as the non-owner meets the other conditions.

You withdraw by giving Form T1036 to your RRSP issuer, not by filing something first with the CRA. Complete Area 1. The issuer completes Area 2 and releases the funds without withholding tax if the request is eligible and within the $60,000 cap.

1.    Confirm you meet every participation condition, including Canadian residency from the first withdrawal through the purchase.

2.    Have a written agreement to buy or build a qualifying home.

3.    File a separate T1036 for each RRSP and each withdrawal.

4.    Keep withdrawals inside the same calendar year as the first one, plus January of the following year.

5.    Buy or build by October 1 of the year after the first withdrawal. A first withdrawal in 2026 generally requires a purchase by October 1, 2027.

6.    Occupy the home as your principal residence within one year.

Work the timing into your offer strategy. If you are shopping in Surrey or Langley, tell your realtor and your lender that HBP funds are part of the down payment so the conditions and the completion date leave room for the issuer to process T1036.

You have 15 years to repay the amount you withdrew. A repayment is an RRSP, PRPP, or SPP contribution made in the repayment year or in the first 60 days of the following year, then designated as an HBP repayment on Schedule 7, line 24600. That designated amount is not also claimed as an RRSP deduction on line 20800.

When repayment starts

The default rule starts repayment in the second calendar year after the year of your first withdrawal. The CRA has extended temporary repayment relief. According to the CRA Home Buyers' Plan overview, first withdrawals made between January 1, 2026 and December 31, 2028 defer the start of the 15-year period to the fifth year after the withdrawal year. A first withdrawal in 2026 has a first repayment year of 2031.

That extension continues the Budget 2024 relief that already covered first withdrawals from January 1, 2022 through December 31, 2025. Confirm the start year on your HBP statement of account inside your CRA My Account before you set a savings plan.

How much you repay each year

The minimum annual repayment is your remaining HBP balance divided by the years left in the 15-year period. On a fresh $60,000 balance, that is $4,000 a year, or about $333 a month. On $30,000, it is $2,000 a year.

You can repay more than the minimum in any year. Extra repayments shrink the remaining balance and lower later minimums. The CRA's annual HBP statement of account reflects those extras and states the next year's required amount.

What happens if you miss a repayment

A missed or short repayment is not a late-fee penalty. The shortfall is added to your taxable income for that year as RRSP income on line 12900. If your marginal rate is 30%, a skipped $4,000 instalment costs about $1,200 in tax. You never get that $4,000 of HBP room back.

You must file a tax return every year from the year of your first withdrawal until the balance is cleared or included in income, even if you have no other tax to pay. Use Schedule 7 every year so the CRA can track the account.

Yes, you can use both programs on the same qualifying home. The CRA states that you may withdraw under the HBP and make a qualifying FHSA withdrawal for the same home if you meet the conditions at the time of each withdrawal. One program does not reduce the other.

"You can withdraw amounts from your RRSP under the HBP and make a qualifying withdrawal from your first home savings account (FHSA) for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal." Canada Revenue Agency, The Home Buyers' Plan.

What the FHSA adds

The First Home Savings Account lets a Canadian resident aged 18 to 71 contribute up to $8,000 per year, to a lifetime limit of $40,000, within a 15-year participation window. Contributions are tax-deductible. A qualifying withdrawal, including investment growth, is tax-free. You never repay an FHSA withdrawal used to buy a first home.

Unused FHSA participation room carries forward by up to $8,000. Room starts only when you open the account, not when you turn 18. Transfers from an RRSP into an FHSA count against FHSA room and are not deductible a second time.

The stacking math

A single buyer who maxes both accounts can put $40,000 of FHSA contributions plus $60,000 of HBP funds toward one home. That is $100,000 before any FHSA growth. A couple who both qualify can reach $80,000 of FHSA contributions plus $120,000 of HBP funds, or $200,000 before growth.

*Growth depends on contribution timing and returns. The HBP withdrawal itself is capped at $60,000 even if the RRSP is larger.

The order that usually wins

7.    Open an FHSA as soon as you know you will buy in Canada. Room does not start until the account exists.

8.    Contribute the $8,000 annual FHSA maximum first. Claim the deduction. Redirect the tax refund into the FHSA or an RRSP.

9.    Build RRSP balances in parallel if you already have room, employer matching, or a longer runway than five years.

10.  At purchase, take the qualifying FHSA withdrawal first. It never has to be repaid.

11.  Use the HBP only for the extra cash you still need, up to $60,000.

12.  After closing, schedule the HBP repayments so a $4,000 annual instalment does not collide with strata fees and a new mortgage.

Do not drain an RRSP under the HBP if the FHSA still has unused room and you have years left to save. The FHSA is the only Canadian account that gives you a deduction on the way in and a tax-free exit with no repayment.

The HBP and FHSA are federal. Closing costs, prices, and Property Transfer Tax are local. That is why the same $100,000 stack covers a full down payment in parts of the Fraser Valley and only a slice of a Metro Vancouver detached purchase.

Down payment math on B.C. prices

Federally insured mortgages require 5% down on the first $500,000 of purchase price and 10% on the portion from $500,000 to $1.5 million. Homes at $1.5 million and above need 20% down and cannot use default insurance.

The Fraser Valley Real Estate Board reported a May 2026 composite benchmark of $893,300, with townhomes at $769,500. The Real Estate Board of Greater Vancouver reported a May 2026 composite benchmark of $1,100,700. Those two numbers change what a $60,000 HBP withdrawal actually buys you.

On a $750,000 Surrey or Langley townhome, the minimum down payment is $50,000. One maxed HBP covers that line. Add a funded FHSA and you have a buffer for legal fees, adjustments, and a home inspection. Browse current homes for sale once you know which registered accounts you can actually tap.

Stack B.C. Property Transfer Tax relief on top

B.C. charges Property Transfer Tax at 1% on the first $200,000 and 2% on the portion from $200,000 to $2 million. The provincial first time home buyers' program wipes out PTT on homes of $500,000 or less and subtracts $8,000 on homes from $500,000 to $835,000. The exemption phases out between $835,000 and $860,000.

That $8,000 PTT cut does not come from your RRSP. It sits beside the HBP and FHSA. On an $800,000 purchase, regular PTT is $14,000. The first-time exemption drops the bill to $6,000. Keep that $8,000 in cash instead of pulling extra from an RRSP you will have to repay.

B.C.'s first-time definition is stricter than the federal HBP test. The province requires that you have never owned a registered interest in a principal residence anywhere in the world, plus a B.C. residency test. Qualifying for the HBP does not automatically qualify you for the PTT exemption. Run both checklists.

Where to use the extra cash

•       Increase the down payment to cut the CMHC insurance premium. The premium is 4.00% of the mortgage when you put 5% to 9.99% down, and 3.10% when you put 10% to 14.99% down.

•       Hold a larger cash reserve after completion so the first HBP repayment year does not land on an empty chequing account.

•       Avoid borrowing closing costs on a high-interest line of credit when registered money is sitting unused.

If you want the purchase modelled against your actual RRSP and FHSA balances, book a consult and bring the latest statements. A financing conversation before you write an offer is cheaper than discovering a 90-day rule problem after the subject-removal date.

Jordan and Sam both qualify as first-time buyers. They have $28,000 in joint cash, $22,000 and $18,000 in FHSAs, and $45,000 and $38,000 in RRSPs. They want a $750,000 townhome in Surrey.

They leave $73,000 in RRSPs untouched. They do not max the HBP just because the cap is $60,000. Every extra HBP dollar is a future after-tax repayment. The FHSA dollars never come back off their paycheque.

If they later repay the $20,000 early, their retirement accounts recover faster and later minimums drop to zero. That flexibility is the point of using the HBP as a top-up, not as the whole plan.

The CRA publishes a list of HBP errors that show up on real files. These are the ones that hit first-time buyers in this market.

•       Failing the four-year occupancy test. You rented after a sale, but you or your current spouse still occupied an owned home inside the look-back window.

•       Withdrawing with an old HBP balance still open. The prior participation must be at zero on January 1 of the new withdrawal year.

•       Ignoring the 89-day rule. A last-minute RRSP contribution is withdrawn, and the deduction is denied.

•       Missing the October 1 purchase deadline. A collapsed deal after a 2026 withdrawal can force a cancellation or a taxable inclusion if you do not buy by October 1, 2027.

•       Forgetting to designate the repayment. An RRSP contribution that is not entered on Schedule 7, line 24600, does not count as an HBP repayment.

•       Treating B.C. PTT first-time status as the same as HBP first-time status. They are different tests.

Registered-account strategy is one piece of a B.C. purchase. You still need a pre-approval, a search that matches your payment ceiling, and a subject clause long enough for inspection and financing. Start with first-time home buyer guidance and the steps in how to buy.

If you already own and are moving a balance from a previous sale into the next purchase, the HBP may not be the tool. The look-back window and the zero-balance rule decide that. A current home value estimate tells you whether staying put and stacking FHSA and RRSP contributions for two more years beats buying now with a thin reserve.

How much can I withdraw from my RRSP under the Home Buyers' Plan in 2026?

You can withdraw up to $60,000 per person. A couple who both qualify can withdraw up to $120,000 combined, each from their own RRSP. Amounts above $60,000 on one participation are taxable and have tax withheld.

Can I use the FHSA and the RRSP Home Buyers' Plan on the same B.C. home?

Yes. The CRA allows an HBP withdrawal and a qualifying FHSA withdrawal for the same home if you meet each program's conditions at the time of each withdrawal. A single buyer can combine $40,000 of FHSA contributions with a $60,000 HBP withdrawal. A qualifying couple can reach $200,000 before FHSA growth.

When do I have to start paying the HBP back?

Repayment runs 15 years. For a first withdrawal made between January 1, 2026 and December 31, 2028, the CRA defers the start to the fifth year after the withdrawal year. A 2026 withdrawal has a first repayment year of 2031. You contribute in that year or in the first 60 days of the next year and designate the amount on Schedule 7.

What if I cannot make the annual HBP repayment?

The unpaid minimum is added to your income on line 12900 and taxed at your marginal rate. A $4,000 missed instalment at a 30% marginal rate costs about $1,200 of tax, and that slice of the HBP is gone for good. Pay what you can. Extra payments in a later year reduce future minimums but do not reverse income already included.

Do I qualify if I owned a condo five years ago in another province?

You can qualify if you did not occupy a home you or your current spouse owned during the current year (except the 30 days before withdrawal) or the previous four calendar years. A sale in 2021 with continuous renting through 2026 can reopen the HBP. Confirm the exact look-back dates against the withdrawal date. B.C. PTT first-time status is a separate, stricter test.

Does the HBP change how much a B.C. lender will approve?

The HBP increases the cash you can put down. It does not raise your Gross Debt Service ceiling on its own. Lenders still test income, debts, and the stress-test rate. Using $60,000 of HBP funds can lower the insured mortgage and the CMHC premium, which can help you qualify, but the approval is still an income test.