The HBP, a plan for your first home

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The HBP, care to elaborate?

The HBP is the Home Buyers' Plan, designed for first-time buyers. This plan allows you to withdraw up to $60,000 from your RRSPs to make a down payment and achieve the dream of buying or building your first home. This is one of only three situations in which you can withdraw money from an RRSP, along with the LLP and, of course, retirement.1

How does the HBP work?

The HBP is pretty straightforward: call your advisor, fill out some forms and receive up to $60,000 a few days later for your down payment!  

1. Are there any conditions? 

To get started, you need to meet a few important conditions:1

  1. You must have an RRSP.
  2. You must deposit the money into your RRSP at least 90 days before withdrawing it. 
    For instance, if you wish to withdraw $60,000 under an HBP on April 1, 2025, your RRSP should have a balance of at least $60,000 since January 2, 2025.
  3. This purchase must be for your first home, and you must have a written agreement to purchase or build this home before October 1 of the year following the withdrawal.  
     

2. What do we mean by "first-time buyers" or a "first home"?

The HBP is about helping first-time homebuyers—getting their foot in the door, so to speak. But even so, there are a few things you need to know.

  • First home: The HBP is for a first primary residence. This means you must reside in your new home within one year following your HBP withdrawal. So, it's not for buying a condo that you want to rent out. That being said, your home doesn’t have to be a house; it can be a duplex, single-family home, condo, etc.
  • First time buyers: You’re considered to be a first time buyer if you and your partner haven’t owned your primary residence during the HBP year and in the last four years.

3. What happens if you buy a home as a couple?

  • To be eligible for the HBP, neither you or your partner must have owned a home in the last four years. This means that if you've never owned a home, but your spouse or common-law partner has owned a home in the last four years, neither of you will be eligible for the HBP. 
  • However, if you both meet the HBP conditions, you can combine your withdrawals and take out up to $120,000.  

4. How do repayments work?

  • You have 15 years to repay the money in full, without interest.
  • Your repayment period doesn’t start right away! In fact, it begins the second year following the year you withdrew funds from your RRSP under the HBP.
  • Repayments are spread out, with a minimum annual amount.
  • The Canada Revenue Agency (CRA) calculates your repayment schedule by dividing the total HBP by 15 (annual payments).

HBP between 2022 and 2025

  • Good news! If you have withdrawn or will withdraw your funds between January 1, 2022 and December 31, 2025, your repayment period will begin five years after the year of your HBP, due to a temporary measure implemented by the CRA.
  • For instance, if you withdrew funds in 2023, your first repayment year would be 2028.

As a savvy buyer, you've probably realized that your investment earnings can help pay for your home. And you’re absolutely right—if you’ve been wisely investing in your RRSP! That's exactly the kind of thing an advisor can help with (no kidding, they love it).2

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RRSP, what’s that?

To participate in an HBP, you need to have savings in a Registered Retirement Savings Plan, aka RRSP. This tax-deferred savings plan is used to put money aside for retirement, to buy a first home or go back to school. While contributing to your RRSP, you also reduce the amount of income tax you pay each year.1

Discover RRSPs

An RRSP with Beneva, it adds up

The capital in your investment accounts is safe! In the event of your death, your beneficiaries recover the money invested before age 75, even if markets have gone down. And, if the markets were in your favour and the final balance exceeds the invested capital, your beneficiaries will get it all back (capital + gains).

We take great care in proposing diversified investments adapted to your profile.2

Investing with an insurer means you can designate a beneficiary to receive the balance in your account in the event of death.

Sums invested in savings and retirement plans are protected by Assuris. See the our information page for full details.

Get a tailor-made projection of your retirement income thanks to our tool designed specifically for your retirement plan (RREGOP or PPMP). And for steady RRSP contributions made easy, go automatic with payroll deductions and watch your savings grow.4

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1. Certain terms and conditions apply.

2. On behalf of Beneva Investment Services Inc., mutual fund dealer and financial services firm or on behalf of Beneva Inc. a financial services firm or Authorized partners of Beneva Inc., a financial services firm.

3. Participating employers only.