What is the Home Buyer’s Plan?

CRA offers a program to homebuyers that allows you to withdraw money from your RRSP penalty-free to buy your first home.

You can withdraw up to $60,000 from your RRSP (as of Apr. 16, 2024) and have up to 15 years to repay any amount to your RRSP that you took out.

How does repayment work?

The repayment period starts the second year after you withdrew the funds. And the minimum required amount to be repaid each year is calculated as the amount you took out, divided by how many years you have left to pay it.
For example, if you withdraw $35,000, your minimum yearly repayment is $2,333.33 (35,000 / 15). This continues each year until you have paid back the entire $35,000 into your RRSP.