# Home Buyers' Plan repayment: when it starts, how to pay and what a missed year costs

Source: https://canadataxdesk.com/registered-accounts/home-buyers-plan-repayment
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: RRSP, TFSA and FHSA
Last updated: 2026-10-22

> Home Buyers' Plan repayment for a first withdrawal made from January 1, 2022 to December 31, 2028 starts in the fifth year after the withdrawal year, so a 2026 withdrawal has 2031 as its first repayment year (CRA). You then have 15 years to repay, and each year's minimum is your balance divided by the years left.

## Key facts

- First repayment year, 2026 withdrawal: 2031
- Deferral applies to first withdrawals made: January 1, 2022 to December 31, 2028
- Repayment period: 15 years
- Minimum on a $60,000 withdrawal: $4,000 a year
- Where you designate repayments: Schedule 7 of your return
- Shortfall is taxed on: Line 12900 as RRSP income

## When do I start repaying the Home Buyers' Plan?

You start Home Buyers' Plan repayment in the fifth year after the year of your first HBP withdrawal if that first withdrawal was made between January 1, 2022 and December 31, 2028. For an older first withdrawal, made before 2022, repayment starts in the second year after the withdrawal year (CRA, Repayments under the HBP).

An HBP repayment is a contribution to your own RRSP, pooled registered pension plan (PRPP) or specified pension plan (SPP) that you designate on your return as paying back money taken out under the plan. It is not a payment to the CRA, and it earns no deduction, because the money was deducted when it first went into the RRSP.

| First withdrawal year | Rule that applies | First repayment year | Final repayment year |
| --- | --- | --- | --- |
| 2020 | Standard (second year) | 2022 | 2036 |
| 2021 | Standard (second year) | 2023 | 2037 |
| 2022 | Budget 2024 deferral (fifth year) | 2027 | 2041 |
| 2024 | Budget 2024 deferral (fifth year) | 2029 | 2043 |
| 2026 | Extended deferral (fifth year) | 2031 | 2045 |
| 2028 | Extended deferral (fifth year) | 2033 | 2047 |

First repayment year by year of first HBP withdrawal

## HBP repayment deferral: does it apply to my withdrawal?

The HBP repayment deferral applies if your first withdrawal falls in the 2022 to 2028 window. Budget 2024 introduced it for first withdrawals made from 2022 to 2025, and the CRA now lists an extension covering first withdrawals made from January 1, 2026 to December 31, 2028 (CRA, What is the Home Buyers' Plan). The CRA's separate repayment page, last updated in January 2026, still describes only the 2022 to 2025 window, so rely on the main HBP page and on your HBP statement of account, which the CRA sends with your notice of assessment and which shows the minimum you must repay for the following year.

What matters is the year of the first withdrawal, not the year you close on the home. Someone who took money out in December 2025 and closed in March 2026 has a 2025 first withdrawal, so their first repayment year is 2030. A second withdrawal made in January of the following year belongs to the same participation and does not move the start date.

> **First withdrawals from 2029 onward:** The CRA has not announced any deferral for first withdrawals made in 2029 or later. As of October 22, 2026, those would return to the standard rule, with repayment starting in the second year after the withdrawal.

## How much is the minimum HBP repayment each year?

The minimum HBP repayment for a year is your remaining balance divided by the number of years left in your 15-year period. In the first repayment year that means the full withdrawal divided by 15: $4,000 on a $60,000 withdrawal, or $1,100 on $16,500.

Paying more than the minimum lowers every later minimum, because the calculation restarts from the smaller balance. Suppose your balance is $30,000 in your first repayment year, so the minimum is $2,000, and you repay $5,000. The next year's minimum becomes $25,000 divided by 14, or about $1,786.

## How do I make an HBP repayment?

You make an HBP repayment by contributing to your RRSP, PRPP or SPP and then telling the CRA on your return that the contribution is a repayment. The steps are the same every year.

1. **Check the minimum** for the year on your HBP statement in CRA My Account or on your notice of assessment.
2. **Contribute to your own RRSP, PRPP or SPP** during the repayment year or within the first 60 days of the next year. This is the same window as the [RRSP contribution deadline](https://canadataxdesk.com/registered-accounts/rrsp-contribution-deadline).
3. **Keep the contribution receipt** from your issuer.
4. **Complete Schedule 7,** RRSP, PRPP and SPP Contributions and Transfers, and HBP and LLP Activities, and designate the amount as an HBP repayment on line 24600 of the schedule. Part E is used in the year of your first withdrawal and Part B in later years.
5. **Do not deduct it.** Leave the designated amount off line 20800, and do not report it on line 12900.

### Repayment deadlines for the next two years

- **2026 minimum** (first withdrawals made in 2021 or earlier, which are already repaying): contribute by March 1, 2027, the 60th day of 2027 by our calculation, and designate it on your 2026 Schedule 7.
- **2027 minimum**, which is also the first one for anyone whose first withdrawal was in 2022: contribute during 2027 or by February 29, 2028, the 60th day of 2028.
- **First withdrawals from 2023 to 2025** have no minimum until 2028, 2029 or 2030. Anything you repay before then reduces the amount due for your first repayment year.

> **Contributions that cannot count as repayments:** The CRA will not accept these as HBP repayments: contributions made by your spouse or common-law partner to a spousal plan, direct transfers in from a pension plan, DPSP, RRIF, FHSA or another registered plan, amounts you already deducted in an earlier year, Lifelong Learning Plan repayments, and retiring allowances you transferred and deducted. You also cannot repay the HBP into an FHSA.

## What happens if I miss an HBP repayment?

If you repay less than the minimum, the shortfall is added to your income as RRSP income on line 12900 for that year and taxed at your marginal rate. If you repay nothing, the whole minimum is included. There is no separate penalty or interest charge, and the included amount comes off your HBP balance.

Take a $60,000 withdrawal with a $4,000 minimum. Designate $1,500 and $2,500 goes on line 12900. At a combined marginal rate of 30.5%, that costs about $763 in tax. Your balance still drops by the full $4,000, so the next minimum stays at $4,000.

The real cost is permanent: the $2,500 you skipped never goes back into your RRSP, and the room it used is gone. For how income on line 12900 is taxed, see our page on [RRSP withdrawal tax](https://canadataxdesk.com/registered-accounts/rrsp-withdrawal-tax).

### Forgot to designate a contribution you made?

If you contributed enough but did not designate it on Schedule 7, the CRA will treat the minimum as unpaid. Ask for a correction with Change my return in My Account or Form T1-ADJ, asking the CRA to redesignate the contribution as an HBP repayment.

## Where can I see my HBP balance?

Your HBP balance and the next year's minimum appear in three places: the HBP section of CRA My Account, your [notice of assessment](https://canadataxdesk.com/after-you-file/notice-of-assessment), and the RRSP statement the CRA sends when your information changes (Form T1028). Our [CRA My Account guide](https://canadataxdesk.com/cra-account) explains how to sign in and where the registered plan information sits.

You must file a return and Schedule 7 every year from your first withdrawal year until the balance is zero, even if you owe no tax. Without a return, the CRA cannot record the repayment and will treat the minimum as income once you do file.

## Home Buyers' Plan repayment rules in special situations

- **You turn 71.** You cannot contribute to an RRSP after the year you turn 71. In that year you can repay the whole balance, repay part and include the rest as income over the remaining years, or include all remaining minimums in income as they come due.
- **You become a non-resident after buying.** Repay the balance before the earlier of the date you file your return for the year you leave and 60 days after you become a non-resident, or the unpaid amount is added to income on line 12900.
- **You become a non-resident before buying.** Either cancel your HBP participation or include the unrepaid amount in income for the withdrawal year.
- **The participant dies.** The remaining balance is included in income on the final return, unless the surviving spouse or common-law partner, if resident in Canada, jointly elects with the legal representative to take over the repayments, using Form RC98 or a signed letter attached to the final return.

## Should I repay early or use the deferral?

The deferral gives you years with no required payment, which helps while you pay closing costs and furnish a home. It does not cut the total you must repay, and money sitting outside your RRSP is not growing tax-sheltered for retirement.

If you still have savings goals for the home, compare paying down the HBP with using a First Home Savings Account, which never has to be repaid. Our [Home Buyers' Plan vs FHSA](https://canadataxdesk.com/registered-accounts/home-buyers-plan-vs-fhsa) comparison covers that choice, and the main [Home Buyers' Plan](https://canadataxdesk.com/registered-accounts/home-buyers-plan) page covers eligibility and the withdrawal itself.

## Step by step

1. **Find your minimum.** Check the HBP balance and minimum repayment in CRA My Account or on your notice of assessment.
2. **Contribute to your RRSP.** Contribute to your own RRSP, PRPP or SPP during the year or in the first 60 days of the next year.
3. **Designate on Schedule 7.** Designate the contribution as an HBP repayment on Schedule 7 when you file.
4. **Leave it off your deduction.** Do not include the designated amount on line 20800.
5. **Confirm on your assessment.** Check the new balance and next minimum on your notice of assessment.

## Common questions

### Can I repay my Home Buyers' Plan before the first repayment year?

Yes. Before your first repayment year there is no minimum to meet, and the CRA counts early repayments first against the amount due for that first year. Anything above that year's minimum reduces your balance and every later minimum, while the 15-year repayment period stays the same.

### Can I make an HBP repayment if my RRSP deduction limit is zero?

Yes. HBP repayments do not use RRSP deduction room, so you can contribute and designate the amount as a repayment even when your RRSP deduction limit is zero. The CRA does not treat that amount as an RRSP contribution, so it cannot be deducted.

### Is there interest on the Home Buyers' Plan?

No. The HBP charges no interest. The only cost of not repaying is that the shortfall is taxed as income on line 12900.

### Can I repay the HBP in a lump sum?

Yes. You can designate your entire remaining balance as a repayment in one year, which ends your participation and lets you use the HBP again later once the balance is zero on January 1 of the new withdrawal year.

### Does an HBP repayment reduce my taxes?

No. Designated repayments are not deductible. Only RRSP contributions above the amount you designate can be deducted on line 20800.

### What is the HBP repayment schedule for a 2025 withdrawal?

A first withdrawal in 2025 falls under the Budget 2024 deferral, so the first repayment year is 2030 and the last is 2044, assuming you repay the minimum each year.

### Can I pay my HBP repayment in February for the previous year?

Yes. Contributions made in the first 60 days of a year can be designated as the repayment for the previous year on that year's Schedule 7.

## Sources

- [What is the Home Buyers' Plan](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html)
- [How to repay the amounts withdrawn under the HBP](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/repay-funds-withdrawn-rrsp-s-under-home-buyers-plan.html)
- [How to report HBP repayments on your return](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/report-repayments-on-your-income-tax-benefit-return.html)