How long do I have to repay my HBP withdrawal?

You have 15 years to repay your HBP withdrawal, starting the second year after your withdrawal. Each year you must repay at least 1/15 of the original amount (about 6.67% per year).

What happens if I miss an HBP repayment?

If you do not make the required repayment, that year minimum amount is added to your taxable income. You will pay tax on it as if it were an RRSP withdrawal that year.

Can I repay my HBP faster than required?

Yes, you can repay more than the minimum each year. Extra repayments reduce future minimum requirements proportionally. There is no penalty for paying faster.

HBP RRSP Repayment Rules Canada 2026

What Is the HBP?

Home Buyers’ Plan

Feature	Details
What it is	Borrow from RRSP for home
Maximum	$60,000 per person
Tax-free	If repaid
Repayment	Over 15 years

Eligibility

Requirement	Details
First-time buyer	Or not owned in 4 years
Principal residence	Must live there
Canadian resident	At withdrawal and purchase
Written agreement	By Oct 1 following year

The Repayment Schedule

Timeline

Event	When
HBP withdrawal	Year 0
Grace period	Year 1 (no payment required)
Repayments begin	Year 2
Repayments end	Year 16

Annual Minimum

Calculation	Details
Total withdrawn	÷ 15
Annual minimum	1/15 (6.67%)

Example: $60,000 Withdrawal

Item	Amount
HBP withdrawn	$60,000
Annual repayment	$4,000
First repayment	Year 2 after withdrawal
Last repayment	Year 16 after withdrawal

How Repayment Works

Making Repayments

Step	Action
1	Contribute to RRSP
2	Designate as HBP repayment
3	On tax return Schedule 7
4	Amount reduces balance

Important Distinction

Contribution Type	Tax Treatment
HBP repayment	No deduction
Regular RRSP	Deduction

Cannot get deduction for HBP repayments—it’s paying back borrowed money.

Over-Contribution

If You	What Happens
Repay more than minimum	Future minimums reduced
Repay full balance	Repayment complete
Have extra room	Can contribute for deduction too

Missing a Repayment

What Happens

If You Don’t Repay	Consequence
Minimum amount	Added to income
Tax due	At marginal rate
HBP balance	Reduced by that amount

Example: Missing Payment

Situation
HBP balance	$40,000
Required repayment	$4,000
Repayment made	$0
Added to income	$4,000
Tax owed (~30%)	~$1,200
New HBP balance	$36,000

Partial Payment

Situation
Required repayment	$4,000
Repayment made	$2,500
Shortfall	$1,500
Added to income	$1,500

Repayment Strategies

Strategy 1: Pay Minimum Only

Approach	Details
Pay exactly 1/15	Each year
Use other funds	For other investments
15 years	To complete

Pros	Cons
Maximum flexibility	Takes full 15 years
Cash for other goals	Must remember each year

Strategy 2: Accelerated Repayment

Approach	Details
Pay more than minimum	When able
Reduces future minimums	Proportionally
Finished sooner	Optional

Pros	Cons
Done faster	No tax deduction
Less to track	Less flexibility

Strategy 3: RRSP Deduction First

Approach	Details
Have room?	Contribute for deduction
Then designate	Portion as HBP repayment
Maximize	Tax benefits

Example

Action	Amount
RRSP room	$10,000
Contribute	$10,000
Designate as HBP	$4,000 (required)
Claim as deduction	$6,000

Tracking Your Repayment

CRA My Account

Shows	Details
HBP balance	Remaining
Required repayment	This year
Repayment history	Past years

From Notice of Assessment

Information	Shown
HBP amount owing	Balance
Next year repayment	Minimum due

Special Situations

Couple with Two HBPs

Situation	Treatment
Both withdrew	Each has own repayment
Different amounts	Track separately
One defaults	Doesn’t affect other

Separation or Divorce

Situation	Treatment
Separate	Each still responsible
Move out	Still must repay
Sell house	Still must repay

Death

Situation	Treatment
Borrower dies	Balance due or
Rollover	To spouse if surviving

Moving Abroad

Situation	Treatment
Become non-resident	Balance may be due
Within 2 years	Full or partial
Rules vary	Get professional advice

Tax Return Reporting

Schedule 7

Section	Report
RRSP contributions	Total this year
HBP repayment	Portion designated
Regular contribution	Remainder (deductible)

Example Filing

Item	Amount
Total RRSP contribution	$8,000
Designate as HBP	$4,000
Deduction claimed	$4,000

Common Mistakes

Errors to Avoid

Mistake	Problem
Forget to designate	Treated as regular contribution
Miss payment	Taxable income
Lose track of amount	Confusing at year-end

How to Avoid

Action	Prevention
Check CRA My Account	Know required amount
Contribute by deadline	Dec 31 or March 1
Designate properly	On tax return

Repayment vs. New Contributions

Understanding the Difference

HBP Repayment	Regular RRSP
No deduction	Deduction
Reduces HBP balance	Increases RRSP
Must designate	Default is regular

Maximizing Benefits

If You Have	Consider
Extra RRSP room	Contribute for deduction
Only minimum funds	Designate all as HBP
Both	Split strategically

Summary

Key Rules

Rule	Remember
15 years	To repay
1/15 minimum	Each year starting year 2
Miss payment	Taxable as income
Designate	On Schedule 7

Timeline Checklist

Year	Action
0	Withdraw HBP
1	Grace period
2	First repayment due
3-15	Continue repayments
16	Final repayment