Worked Scenarios and Checklists
Home Buyers' Plan ($60,000) and Lifelong Learning Plan: borrowing from your RRSP and paying it back
How the HBP and LLP work in 2026: limits, conditions, the 90-day rule, repayment schedules including the 2022–2025 deferral, missed repayments and combining with an FHSA.
The Home Buyers' Plan (HBP) lets a first-time home buyer withdraw up to $60,000 from their RRSPs to buy or build a qualifying home, and the Lifelong Learning Plan (LLP) lets you withdraw up to $10,000 a year, $20,000 in total, for full-time training or education for you or your spouse. Neither withdrawal is taxed or subject to withholding if done with the right form, but both are loans from yourself that must be repaid to your RRSP: the HBP over 15 years, the LLP over 10 years. Any yearly repayment you skip is added to your income for that year.
This guide is part of the scenarios hub. Conditions are summarized; the CRA's HBP and LLP pages give the full list. General information only.
Home Buyers' Plan: the essentials
| Rule | Detail |
|---|---|
| Maximum withdrawal | $60,000 per person (couples can each withdraw up to $60,000) |
| First-time buyer test | Broadly, you did not occupy a home owned by you or your current spouse or common-law partner in the current year or the four previous calendar years (exceptions for marriage breakdown and disability) |
| Agreement | Written agreement to buy or build a qualifying home before the withdrawal |
| Purchase deadline | Generally buy or build before October 1 of the year after the withdrawal |
| Occupancy | Intend to live in it as your principal residence within one year of buying or building |
| Form | T1036, given to your RRSP issuer for each withdrawal |
| 90-day rule | Contributions must stay in the RRSP at least 90 days before the HBP withdrawal, or they are not deductible |
| Repayment | 1/15 per year for 15 years, starting the second year after the withdrawal |
| Temporary deferral | For first withdrawals between January 1, 2022 and December 31, 2025, repayments start in the fifth year after the withdrawal |
HBP worked example
An illustrative buyer makes a first HBP withdrawal of $45,000 in June 2026 (the 2022–2025 deferral does not apply).
| Year | What happens |
|---|---|
| 2026 | Withdrawal; no tax, no withholding with Form T1036 |
| 2027 | No repayment required |
| 2028 | First repayment due: $45,000 ÷ 15 = $3,000 |
| 2028 to 2042 | $3,000 a year (or more; extra payments reduce later minimums) |
| If only $1,000 is repaid in 2030 | $2,000 is added to 2030 income and taxed |
Repayments are ordinary RRSP contributions designated on Schedule 7 of your return, and can be made in the year or within the first 60 days of the next year. They do not use new RRSP room and are not deductible. Your notice of assessment shows the HBP balance and the next repayment due.
If the same person had made the first withdrawal in 2025, the first repayment would be due in 2030 instead of 2027, under the temporary deferral introduced in Budget 2024.
Combining the HBP with an FHSA
Since 2023 you can use both for the same home. A common order is:
- Fill the FHSA first, because its withdrawal is tax-free and need not be repaid.
- Use the HBP for the extra down payment, mindful of the repayment burden.
- Keep the TFSA for closing costs, moving and the first emergency reserve.
For a couple who both qualify, the theoretical maximum is $80,000 from FHSAs and $120,000 from HBPs, but few couples have the room or savings to reach it, and repaying $8,000 a year of combined HBP loans for 15 years is a real cash-flow commitment.
Lifelong Learning Plan: the essentials
| Rule | Detail |
|---|---|
| Who can be the student | You or your spouse or common-law partner (not children) |
| Program | Qualifying educational program at a designated institution, generally full-time (part-time if a disability condition is met) |
| Limits | $10,000 per calendar year, $20,000 total per participation period |
| Form | RC96 for each withdrawal |
| Repayment period | Up to 10 years, 1/10 per year |
| Start of repayment | No later than the fifth year after the first withdrawal; earlier if the student is not a qualifying student for at least three months in two years in a row (repayment then usually starts in the second of those years) |
LLP worked example
An illustrative mid-career worker withdraws $10,000 in 2026 and $10,000 in 2027 for a two-year full-time program. The program ends in 2027, so the worker is not a qualifying student for at least three months in 2028 or 2029; under the CRA rule the repayment period then usually starts in the second of those years, 2029 (not the 2031 fifth-year backstop). Each year's minimum is $20,000 ÷ 10 = $2,000, from 2029 until 2038. Missing a year adds the shortfall to income.
Practical points before using either plan
- Opportunity cost: money taken out stops growing tax-sheltered until repaid. A $45,000 HBP withdrawal repaid slowly can mean noticeably less in the RRSP at retirement; use the growth projector to see the effect.
- Investments must be sold to free cash, possibly at a bad moment in markets.
- Spousal RRSPs: HBP and LLP withdrawals from a spousal plan are not attributed to the contributor, but the annuitant (the spouse) is responsible for repayments.
- Leaving Canada or dying with an HBP or LLP balance triggers special rules: generally the balance must be repaid within a short period or is included in income.
- Turning 71: any HBP or LLP balance still owing continues to be repaid or included in income after conversion; plan for it.
Quebec notes
The federal HBP and LLP rules apply to Quebec residents, whose plans are called RAP (Régime d'accession à la propriété) and REEP (Régime d'encouragement à l'éducation permanente). Quebec follows the federal treatment for tax purposes; confirm the Quebec forms with Revenu Québec.
Frequently asked questions
Can I use the HBP more than once?
Yes, if your previous HBP balance is fully repaid by January 1 of the year of the new withdrawal and you again meet the first-time buyer test.
Does an HBP withdrawal count as income?
No, as long as the conditions are met and you repay on schedule.
Can I repay the HBP faster?
Yes. Extra repayments reduce the balance and later annual amounts.
Can I use the LLP for a child's education?
No. Use an RESP for children; the LLP is for you or your spouse or partner.
Official sources
- Canada Revenue Agency — Home Buyers' Plan, Lifelong Learning Plan, Forms T1036 and RC96
- Revenu Québec — RAP and REEP on the Quebec return
- Financial Consumer Agency of Canada — buying a first home
- Justice Laws Website — Income Tax Act sections 146.01 (HBP) and 146.02 (LLP)
