$60,000 Canada Home Buyer Plan 2025 – Check Payment Dates and How to Get it!

$60,000 Canada Home Buyer Plan 2025: Buying a home for the first time in Canada just became more accessible thanks to the updated Home Buyers’ Plan (HBP). As of April 16, 2024, eligible Canadians can now withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP)—a significant jump from the previous $35,000 limit. This tax-free withdrawal can be used toward the purchase or construction of a qualifying home. Whether you’re a young family planning your future or a professional ready to lay down roots, the updated HBP is a powerful financial tool. In this guide, we’ll walk you through everything you need to know—eligibility, payment steps, withdrawal process, key dates, and more.

$60,000 Canada Home Buyer Plan 2025

The $60,000 Home Buyers’ Plan for 2025 is a major enhancement to Canada’s strategy to help citizens become homeowners. It opens doors for individuals and families struggling to keep up with soaring housing costs, providing much-needed liquidity without tax penalties—if used correctly.

If you’re planning to buy your first home in the coming years, take advantage of the updated HBP by contributing early to your RRSP and learning the ins and outs of Form T1036. Combine it with other programs like the First Home Savings Account (FHSA) and provincial grants to supercharge your homeownership plan. With proper planning and professional advice, you can turn your dream home into a reality—without compromising your retirement savings.

What Is the Home Buyers’ Plan (HBP)?

The Home Buyers’ Plan (HBP) is a federal initiative that allows first-time home buyers to borrow from their RRSPs without immediate tax consequences, as long as the funds are repaid within 15 years. This provides a boost for people struggling with rising housing costs and trying to meet minimum down payment requirements.

The plan’s primary goal is to help Canadians enter the real estate market—something increasingly difficult amid inflation and limited housing supply.

What’s New in 2025?

Here’s what changed:

• New withdrawal limit: Increased from $35,000 to $60,000 per individual.
• Repayment deferral: Withdrawals made between January 1, 2022, and December 31, 2025, will have a five-year grace period before annual repayments start (previously it was two years).
• Couples benefit: If both spouses qualify, they can jointly withdraw up to $120,000.

Step-by-Step: How to Use $60,000 Canada Home Buyer Plan 2025

1. Check if You’re Eligible

You must:

• Be a first-time home buyer (you or your spouse haven’t owned a home you lived in during the past 4 years).
• Have a written agreement to buy or build a qualifying home.
• Intend to live in the home within one year of purchase.
• Be a resident of Canada at the time of withdrawal.

2. Contribute to Your RRSP

You need to have the money in your RRSP for at least 90 days before withdrawing it under the HBP to ensure it’s tax-deductible.

3. Complete and Submit Form T1036

This form is your official request to withdraw funds under the HBP.

• Fill out Part 1.
• Send it to your RRSP issuer who will complete Part 2 and process the withdrawal.

4. Use the Funds Wisely

Funds withdrawn must be used specifically for buying or building a qualifying home. Using the money for other purposes can disqualify you from the program.

Repayment Terms and Timeline

The HBP isn’t “free” money—it’s a loan from your retirement savings.

• Repayment starts the fifth year after withdrawal for 2022–2025 transactions.
• You must repay 1/15th of the total amount each year for 15 years.
• If you withdraw $60,000, your annual minimum repayment will be $4,000.
• Missed repayments will be added to your taxable income for that year.

You’ll receive a notice from the Canada Revenue Agency (CRA) indicating your repayment amount each year on your Notice of Assessment.

Advantages of the HBP

• Tax-free withdrawals if repaid correctly.
• Easier to afford a larger down payment.
• Reduces or eliminates need for mortgage insurance (if down payment ≥20%).
• Couples can combine funds.
• Extended grace period for recent withdrawals.

Potential Drawbacks

• You’re reducing your retirement savings.
• Missing a repayment increases your taxable income.
• Your investment may miss out on compound interest.
• You cannot re-contribute withdrawn RRSP funds beyond repayment.

Additional Financial Tips

• Combine the HBP with the First Home Savings Account (FHSA): The new FHSA also allows up to $8,000/year ($40,000 total) in tax-free savings for first homes.
• Check provincial incentives: Programs like the First-Time Home Buyer Incentive (FTHBI) and Land Transfer Tax Rebates may apply in your area.
• Work with a mortgage broker to optimize your down payment strategy using HBP funds.

$7,500 Canada Home Renovation Credit in April 2025: How to Claim it? Check Eligibility

$10,000 Home Buyers Tax Credit in Canada: Are You eligible to get it? Check Eligibility

$500 CHB Payment In 2025 – Canada Housing Benefit Eligibility & Payout Dates

Frequently Asked Questions About $60,000 Canada Home Buyer Plan

1. Can I use the HBP more than once?

Yes, but only if your previous HBP balance is fully repaid by January 1 of the year you plan to withdraw again, and you meet the eligibility rules as a first-time buyer again.

2. Can I use the HBP to buy a home for a relative with a disability?

Yes. You may be eligible to use HBP even if you’re not a first-time buyer if you’re buying for a related person with a disability.

3. What happens if I can’t repay one year?

The amount you fail to repay that year is added to your taxable income, and you’ll pay income tax on it.

4. Do I need to report the withdrawal on my taxes?

No, HBP withdrawals are not reported as income if done properly using Form T1036.

5. Is there a deadline for making the withdrawal?

You must make the withdrawal within 30 days of taking title of the home. After that, the withdrawal doesn’t qualify under HBP rules.