What Is the HBP? | RRSP Withdrawal for First-Time Buyers | Ridge Estate

The Home Buyers’ Plan (HBP) is a long-standing Canadian program that lets first-time buyers use their RRSP savings to buy their first home—without penalty.

Here’s how it works:

• - you can withdraw up to $60,000 from your RRSP tax-free
• - the funds must be used to buy or build your first home
• - you must repay the amount back into your RRSP within 15 years (starting year 2)
• - annual repayments are about 1/15th of the withdrawal per year
• - no interest is charged, and repayments restore your RRSP contribution room

To qualify, you must be a first-time buyer and the home must be your principal residence within a year of buying.

You can combine the HBP with the FHSA and first-time buyer rebates for serious savings.

💡 ridge pro tip: rrsp contributions made 90+ days before your withdrawal still give you a tax refund—and then you can use the refund toward your closing costs.

🔗 related articles: what is the fhsa?, closing costs you should expect

📊 ridge estate helps you unlock the full potential of your rrsp—and plan the perfect blend of long-term investment and first-home strategy.