Canada Home Buyers' Plan gives residents 5 years to start RRSP repayments

How the extended grace period works

Canada's Home Buyers' Plan (HBP) now gives qualifying withdrawals five years before RRSP repayments must begin, up from the previous two-year window. The change runs through Bill C-30, the Spring Economic Update 2026 Implementation Act, which had first reading April 29 and amends section 146.01 of the Income Tax Act to implement the Budget 2024 measure.

The extension applies to first HBP withdrawals made between Jan. 1, 2022 and Dec. 31, 2025. Budget 2024 also raised the withdrawal cap from $35,000 to $60,000 per person. After the five-year deferral, borrowers still repay over up to 15 years, contributing at least 1/15 of the withdrawn amount back to their RRSP each year.

Who can actually use it

Eligibility hinges on Canadian tax residency, not immigration label. Applicants must be residents of Canada for tax purposes from the first withdrawal through the home purchase, qualify as first-time home buyers under the Income Tax Act, hold a written agreement to buy or build and intend to occupy the property as a principal residence within one year.

• Canadian citizens abroad: non-residents can't use the HBP until they re-establish tax residency and rebuild RRSP room.
• Temporary residents on work or long-term study permits: eligible if they file as Canadian tax residents, hold an RRSP and meet the first-time buyer test.
• Remote workers in Canada long-term: eligible only when treated as tax residents, not as deemed non-residents splitting time abroad.
• Tourists: not eligible.

The home must be bought or built before Oct. 1 of the year after the withdrawal and all withdrawals must be completed in the same calendar year as the first withdrawal or by January of the following year.

What to do before the window closes

The five-year grace period only attaches to withdrawals made by Dec. 31, 2025. Expats planning a return and temporary residents weighing a first home purchase should confirm RRSP contribution room, verify tax residency status with a Canadian accountant and time withdrawals to fall inside the qualifying window.

CRA guidance is still being updated, though major banks including TD and RBC are already applying the new limits and timelines.

Read our full Canada guide for the complete picture and check our latest visa updates for more on residency rules.