FHSA and HBP Repayment

The Home Buyers' Plan lets you borrow from your own RRSP to buy a home. The First Home Savings Account lets you save for one with deductible contributions and tax-free withdrawals. The catch with the HBP is the word "borrow": every dollar withdrawn must be repaid to your RRSP on a fixed schedule, and a missed payment becomes taxable income.

This calculator builds your repayment schedule: what you owe each year, when the first payment lands, and what a missed payment costs in tax. The question it answers: what exactly do I owe, and when?

It does not track FHSA contribution room year by year or model over-contributions. It does not revisit whether raiding your RRSP was wise. That decision is behind you; this is about managing the obligation.

Your inputs, explained

HBP withdrawal amount. The total taken from your RRSP under the plan. The current limit is $60,000 per person, raised from $35,000 in April 2024, and couples can each withdraw $60,000. Note: the live calculator page still defaults to $35,000, the stale pre-April-2024 limit. If you withdrew after April 2024, ignore that default and enter your actual amount up to $60,000.

Year of first withdrawal. Standard rule (no grace period applies): repayments start in the second year after withdrawal, at one-fifteenth per year over 15 years.

Year your home purchase/build was completed. This is the date that actually sets your repayment start year whenever the temporary grace period applies — the closing/possession date for a resale, or the date construction is considered complete for a self-build. Under the amended Income Tax Act (Bill C-30, Royal Assent 18 June 2026, s.146.01(4.1)–(4.2)), a completion date anywhere in 2023–2029 pushes your repayment start to the fourth year after that completion date, not the second year after your withdrawal. Completion usually falls in the same year as your withdrawal or the year after, which is why this reproduces the "fifth year after withdrawal" figure people associate with the original Budget 2024 grace period — but if your build or closing is delayed, enter the real completion year, since it can push your start year out further than a withdrawal-year-only estimate would suggest. If your completion date is 2030 or later, this relief window doesn't apply and the standard second-year-after-withdrawal rule takes over.

Your marginal tax rate. Used to price a missed payment. A skipped repayment is added to your income and taxed that year, so the cost is the missed amount times your marginal rate. The common error is expecting a small penalty; it is full income tax on the missed amount.

FHSA withdrawal amount. What you took from your FHSA for the home. Qualifying FHSA withdrawals are tax-free and never repaid, so the calculator treats them as free money with no schedule attached.

How the math works

Annual HBP repayment is simple division: total withdrawn divided by 15. A $60,000 withdrawal means $4,000 per year. The start year is the real complication: second year after your withdrawal, normally — but the fourth year after your home's completion date whenever that completion date falls in 2023–2029.

This is now confirmed law, not a proposal: Bill C-30 (the Spring Economic Update 2026 Implementation Act) received Royal Assent on 18 June 2026, amending Income Tax Act s.146.01(4.1)–(4.2) to extend the grace period to completion dates through 2029. Because completion typically follows the year of withdrawal by 0–1 years, this usually lines up with "the fifth year after your withdrawal" for withdrawals through 2028 — but the two dates can diverge (a delayed self-build, for example), and when they do, your completion date is what actually controls the start year, not your withdrawal year. If your home won't be finished until 2030 or later, the relief window closes and the standard second-year-after-withdrawal rule applies instead.

Missed payments are priced as added income: missed amount times marginal rate, on that year's return. No interest is charged on the missed amount itself, but you permanently lose the tax benefit tied to that repayment.

FHSA math is separate and simpler. Contributions were deductible when made (up to $8,000 per year, $40,000 lifetime, with one year of unused room carrying forward to a $16,000 maximum in a year). Qualifying withdrawals for a first home are tax-free. No repayment, no schedule.

Worked example

A buyer in Montréal withdrew $60,000 under the HBP in 2024 and $25,000 from her FHSA for the same purchase. Marginal rate: 43%.

Step 1: Annual HBP repayment. $60,000 ÷ 15 = $4,000 per year.

Step 2: Start year. She withdrew in 2024 and her purchase completed in 2025 — a completion date in the 2023–2029 relief window, so repayments start the fourth year after completion: 2025 + 4 = 2029. She pays $4,000 yearly from 2029 through 2043.

Step 3: FHSA treatment. The $25,000 FHSA withdrawal is tax-free and never repaid. Total tax-free assistance: $85,000 toward the home, with only the HBP portion carrying a repayment duty.

Step 4: Cost of a missed payment. Skip the 2031 repayment and $4,000 is added to 2031 income. Tax: $4,000 × 43% = $1,720. Note the asymmetry: HBP repayments are not deductible, because the withdrawal was never taxed. The pain is the $4,000 becoming taxable income.

Step 5: Contrast a 2027 withdrawal with a typical, on-schedule completion in 2028. Completion year is in the relief window, so repayments start the fourth year after completion: 2028 + 4 = 2032 — confirmed under Bill C-30, not a proposal. But if that same buyer's self-build slips and doesn't complete until 2029 instead, the start year moves to 2029 + 4 = 2033, a year later, even though the withdrawal year never changed. That's the completion date doing the work, not the withdrawal year.

Provincial quirks and edge cases

Quebec residents file with Revenu Québec as well as the CRA, and HBP repayments must be reported consistently on both returns. The mechanics are federal, but a missed payment raises income on both.

In Ontario, the 8% sales tax on the CMHC premium is cash on closing. Many buyers drain savings for the down payment, use the HBP for the rest, and then discover the premium tax needs cash they no longer have.

Both spouses can each hold an FHSA and each make an HBP withdrawal: up to $120,000 in combined HBP withdrawals plus $80,000 in lifetime FHSA contributions per couple, plus growth. The calculator runs each person's schedule separately because the CRA does too.

If the purchase fell through after you withdrew, the funds generally must go back into the RRSP. A cancelled purchase is not a free withdrawal; the 90-day and 30-day rules still apply.

Questions to ask a professional

1. Ask a tax professional: does the relief window cover my home's completion date, and does my exact completion date sit close enough to a year boundary that it's worth double-checking?
2. Ask a tax professional: I missed a repayment last year; how is it reported, and can anything still be done?
3. Ask your mortgage broker: should my HBP repayments factor into my debt ratios at renewal?
4. Ask a financial planner: with this repayment schedule, am I still on track for retirement, or did the HBP set me back?