RRSP Home Buyers' Plan Repayment Explained (2026 Schedule and Example)
An HBP withdrawal is repaid at 1/15 a year over 15 years, starting the second year after withdrawal. Miss a year and that amount becomes taxable income.
You repay a Home Buyers' Plan withdrawal by contributing to any RRSP and designating the contribution as an HBP repayment on Schedule 7 of your tax return. The minimum is 1/15 of the amount withdrawn each year for 15 years. Repayments begin in the second year after the withdrawal. For withdrawals made between 2022 and 2028 the government extended the grace period to the fifth year. Any year you repay less than the minimum, the shortfall is added to your income and taxed, and you cannot make it up later.
Figures come from the CostToClose FHSA and HBP calculator.
The schedule
| Withdrawal year | First repayment due for tax year | Annual minimum on $60,000 |
|---|---|---|
| 2022 to 2028 | Fifth year after withdrawal (a 2026 withdrawal → 2031) | $4,000 |
| 2029 | 2031 | $4,000 |
| 2030 | 2032 | $4,000 |
Source: CRA, Home Buyers' Plan; temporary repayment grace for 2022–2028 withdrawals (Bill C-30, Royal Assent 2026-06-18). Checked 14 September 2026.
The "year" is the tax year; a repayment for 2028 can be made any time in 2028 or in the first 60 days of 2029, like any RRSP contribution.
How a repayment works
- Contribute to an RRSP (yours; not a spousal RRSP unless you are the annuitant).
- On Schedule 7, designate the amount as an HBP repayment rather than a deductible contribution.
- The designated amount does not create a tax deduction. You already had it when you first contributed.
Any contribution beyond the minimum can be designated as extra repayment, which shortens the schedule. Contributions made in the 60 days after year-end count for the prior year.
What happens if you miss a year
The unpaid minimum is included in your income for that year (line 12900) and taxed at your marginal rate. Your remaining balance falls by that amount, and the next year's minimum is recalculated on what is left over the remaining years. You do not get to repay the missed year later.
At a 30% marginal rate, missing a $4,000 minimum costs $1,200 of tax. It is not a penalty so much as the deferred tax finally coming due, but it is money you could have kept sheltered by contributing.
Worked example from the calculator
Buyer withdrew $60,000 in June 2026 for a purchase closing in August:
| Year | Minimum repayment | Cumulative | Balance |
|---|---|---|---|
| 2026–2030 | $0 (grace) | $0 | $60,000 |
| 2031 | $4,000 | $4,000 | $56,000 |
| 2032 | $4,000 | $8,000 | $52,000 |
| … | |||
| 2045 | $4,000 | $60,000 | $0 |
If in 2034 the buyer repays only $1,000: $3,000 is added to 2034 income, the balance drops to $45,000, and the 2035 minimum becomes $45,000 ÷ 11 = $4,091. Reproduce this.
Repaying early or in full
You can repay any amount at any time and designate it. Some buyers repay the whole balance in one year when they have a windfall; there is no advantage except simplicity, since the money is going back into a tax-sheltered account either way. Others deliberately do not repay in low-income years, taking the small income inclusion at a low rate. Legal, and sometimes sensible.
What changes the number
- Withdrawal year: the grace period.
- Amount withdrawn: the minimum is always the balance ÷ years remaining.
- Your marginal rate in any year you skip.
- Leaving Canada or turning 71. The balance must be repaid or included in income.
Frequently asked questions
When do I start repaying the Home Buyers' Plan?
In the second year after the withdrawal. For withdrawals made from 2022 through 2028, the fifth year.
How much do I repay each year?
At least 1/15 of the amount withdrawn: $4,000 a year on a $60,000 withdrawal. More is allowed.
What if I can't make an HBP repayment?
The minimum for that year is added to your taxable income. The balance drops by that amount and the schedule continues on the remainder.
Is an HBP repayment tax deductible?
No. You designate the RRSP contribution as a repayment on Schedule 7 instead of deducting it.
Can I use the HBP again?
Yes, once the previous balance is fully repaid and you again meet the first-time buyer definition (no home owned in this or the previous four years).
Sources
- Canada Revenue Agency, Home Buyers' Plan — repaying your withdrawal — checked 14 Sept 2026
- Canada Revenue Agency, Schedule 7 and line 12900 — checked 14 Sept 2026
- Department of Finance Canada, Budget 2024 — HBP limit increase and temporary repayment relief — checked 14 Sept 2026
This guide gives general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.