For many Canadians, buying a home—especially a first home—can feel out of reach. Thankfully, the Canadian government offers the Home Buyers’ Plan (HBP), which allows eligible individuals to withdraw funds from their Registered Retirement Savings Plan (RRSP) to help with a home purchase. To initiate this process, you must complete and submit Form T1036 – Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP. This guide walks you through everything you need to know about Form T1036, eligibility, repayment obligations, and strategic tips for maximizing your RRSP funds.
What Is the Home Buyers’ Plan (HBP)?
The HBP allows you to withdraw up to $35,000 (as of 2025) from your RRSP to buy or build a qualifying home. If you’re purchasing with a spouse or common-law partner who also qualifies, you can each withdraw $35,000 for a total of $70,000. The withdrawn amount must be repaid to your RRSP over a 15-year period to avoid it being included as taxable income.
What Is Form T1036?
Form T1036 is the official CRA form used to request a withdrawal of RRSP funds under the HBP. It notifies your RRSP issuer that the withdrawal qualifies for the HBP and should not be taxed at source.
This form must be completed and signed by both the individual making the withdrawal and the RRSP issuer (usually your bank or financial institution). Once processed, the withdrawal amount will be reported on a T4RSP slip but will not be subject to withholding tax if all conditions are met.
Who Is Eligible for the HBP?
You must meet the following criteria:
- Be a first-time homebuyer (you or your spouse/common-law partner did not own a home in the last 4 years)
- Have a written agreement to buy or build a qualifying home
- Intend to live in the home as your principal place of residence within one year of buying/building
- Be a resident of Canada at the time of withdrawal and until the home is acquired
Additionally, the RRSP funds being withdrawn must have been in the account for at least 90 days before the withdrawal date.
Step-by-Step: How to Complete Form T1036
Part 1: To be Completed by the Individual (You)
Provide your personal details:
- Name, address, and Social Insurance Number (SIN)
- Name of the RRSP issuer (your bank or investment institution)
- Amount you want to withdraw (up to $35,000)
- Confirmation that you meet all eligibility criteria
Sign and date the form to authorize the transaction.
Part 2: To be Completed by the RRSP Issuer
Your RRSP provider fills in:
- RRSP account number
- Date and amount of withdrawal
- Certification that the withdrawal is being made under the HBP
The RRSP issuer then issues the payment and prepares a T4RSP slip (statement of RRSP income).
Where to Get Form T1036
You can download the latest version of Form T1036 from the Canada Revenue Agency (CRA) website or obtain a paper copy from your financial institution. Most banks and brokerages also allow you to submit this form digitally through their online platforms.
How Are the Withdrawals Reported?
The amount withdrawn under the HBP is reported on a T4RSP slip in Box 27. The form should indicate that the withdrawal was made under the Home Buyers’ Plan and is not subject to immediate taxation.
You must also report the withdrawal on Schedule 7 of your income tax return for the year you made the withdrawal, confirming that it qualifies under the HBP.
Repaying Your HBP Withdrawals
You must begin repaying the amount withdrawn starting the second year after the year of the withdrawal. The repayment period is 15 years, and each year you must repay at least 1/15th of the amount withdrawn.
Repayments are made as RRSP contributions, but they must be designated as HBP repayments on Schedule 7 to avoid tax. If you fail to repay the minimum required amount in a given year, that amount is added to your taxable income for that year.
Example: Repayment Calculation
If you withdraw $30,000 in 2025 under the HBP, you must start repaying in 2027. Your minimum annual repayment would be:
$30,000 ÷ 15 years = $2,000/year
If you repay less than $2,000 in any year, the shortfall is added to your income for that year and taxed accordingly.
Strategic Tips When Using the HBP
- Withdraw early in the year: This maximizes the time before repayment begins
- Ensure funds sit in the RRSP for 90+ days: Avoid disqualification of the withdrawal
- Combine with RRSP deductions: Make RRSP contributions before withdrawing to reduce your taxable income
- Repay early if possible: You’re not restricted to the minimum—early repayment frees up RRSP room
What If You Can’t Repay?
If you miss a repayment, the CRA adds the missed amount to your income for the year, and you pay tax on it. While this doesn’t trigger penalties, it could increase your overall tax liability. Planning your repayment schedule and setting up automatic RRSP contributions can help ensure compliance.
Special Notes for Individuals with Disabilities
The HBP can also be used to help purchase or build a home for a related person with a disability, provided that person will live in the home as their principal residence. The same rules and forms apply, but with additional flexibility in qualifying criteria.
Conclusion
Form T1036 is your gateway to accessing your RRSP savings under the Home Buyers’ Plan—a powerful tool that can bring you closer to homeownership without immediate tax implications. However, like any tax-advantaged plan, it comes with rules, repayment requirements, and planning considerations.
Always ensure you meet eligibility conditions, understand your repayment obligations, and consult a financial advisor or tax professional to integrate the HBP effectively into your broader financial strategy. With the right approach, your RRSP can be more than a retirement tool—it can be the key to your first home.
