The 2026 Home Buyers’ Plan Guide: How to Withdraw $60,000 from Your RRSP Tax-Free
- Alex Leite
- 7 days ago
- 3 min read
The 2026 Home Buyers’ Plan Guide: How to Withdraw $60,000 from Your RRSP Tax-Free
If you’re over 30 and working a demanding job, you've likely spent the last few years building two things: your career and your family.
But as your family grows, your current living situation probably feels like it's shrinking. In 2026, the jump to that first home - the one with the actual backyard and the extra bedroom for a nursery or home office - can feel daunting. You've been diligent with your RRSP contributions for retirement, but right now, your "future self" isn't the one who needs more square footage.
Your family does.
The good news? Your RRSP isn't just for age 65. It’s a powerful engine you can tap into today to help get your foot in the door.
What is the RRSP Home Buyers’ Plan withdrawal limit in 2026?
The federal government recently recognized that the old rules didn't match today's housing prices. As of 2026, the Home Buyers’ Plan (HBP) has evolved:
$60,000 Per Person: You can now withdraw up to $60,000 from your RRSP tax-free to use toward your down payment.
The Power Couple Advantage: If you’re buying with a partner, you can pool your resources for a massive $120,000 head start.
The best part? Because this money comes from your RRSP, you’re essentially using pre-tax dollars. You get the full value of what you’ve saved, without the government taking a cut off the top.
Do I Need to Do a 20% Down Payment?
You’ll often hear that you must have 20% down to buy a home.
While hitting that mark saves you on mortgage insurance, it’s not the only way to win.
For many families, the goal isn't "the perfect down payment" - it's getting into the right home sooner.
Using the HBP allows you to:
Bridge the Gap: Turn a "maybe next year" into a "moving in this spring."
Keep Your Cash Flow: By using RRSP funds for the down payment, you can keep more of your liquid "emergency" cash in the bank for those unexpected 3:00 AM plumbing issues or daycare deposits.
Can I Combine The HBP With The First Home Savings Account (FHSA)?
The smartest buyers in 2026 aren't just using the RRSP; they’re "stacking" it with the First Home Savings Account (FHSA).
Think of it as the ultimate upgrade. You can combine your $60,000 RRSP withdrawal with your FHSA savings. Unlike the RRSP, the FHSA doesn't ever have to be paid back.
Pro Tip for the Busy Professional: You can actually move money directly from your RRSP into an FHSA. This "re-labels" your money, allowing you to take advantage of the FHSA's tax-free status without needing to find extra cash in your monthly budget.
How Do I Repay My RRSP Under the Home Buyers’ Plan?
Before you make your move, keep these rules in mind:
The 90-Day Rule: Your funds must be in the RRSP for at least 90 days before you pull them out for the HBP. Timing is everything.
The Interest-Free Loan: Think of the HBP as a loan from your future self. You have a 2-year grace period (starting in 2026) before you must begin repaying it over 15 years. It’s interest-free, manageable, and keeps your retirement plan on track while you enjoy your new home.
Your Next Chapter Using Your RRSP Starts Now
What’s your biggest "must-have" for your first family home? Is it the extra bedroom, a quiet street, or a bigger kitchen? Tell us in the comments below - I’d love to hear what you’re looking for!
TL;DR:
Withdraw Up to $60k Tax-Free: As of 2026, the Home Buyers’ Plan (HBP) limit has been increased to $60,000 per person (or $120,000 for couples), allowing you to tap into your RRSP tax-free to fund your first home.
The "Double-Down" Strategy: You can maximize your down payment by stacking the HBP with your FHSA, effectively combining RRSP funds with the tax-free growth of your First Home Savings Account.
Flexible 15-Year Repayment: The withdrawal is an interest-free loan from your future self. You have a two-year grace period before you begin 15 years of manageable annual repayments to keep your retirement on track.
Before You Go
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