Definition
The Home Buyers' Plan (HBP), in French Régime d'accession à la propriété (RAP), is a federal program launched in 1992 that lets a first-time buyer withdraw part of their RRSP without paying immediate tax, provided the amount is used to purchase or build an eligible principal residence.
Current cap: CA$60,000 per person (raised from CA$35,000 by the 2024 federal budget, applicable to withdrawals after April 16, 2024). A couple can therefore withdraw a combined CA$120,000. Conditions: be a first-time buyer, intend to occupy the property within one year of purchase, and sign the agreement with CRA (form T1036).
Repayment: the withdrawn amount must be repaid to the RRSP in minimum annual installments over 15 years, starting the 2nd year after withdrawal. A missed installment becomes taxable income for the year. Combining HBP + FHSA is permitted and often tax-optimal for a first-time buyer: HBP uses pre-existing RRSPs, FHSA captures new deductible contributions.