RRSP HBP
Using your RRSP for a down payment, tax-free
The Home Buyers' Plan lets first-time buyers borrow from their own RRSP without paying tax on the withdrawal, one of the fastest ways to build a down payment if you've been saving for retirement.
How it works
Withdraw up to $60,000
Each eligible buyer can withdraw up to $60,000, a couple buying together can pull up to $120,000. No tax is withheld as long as the withdrawal follows HBP rules.
Qualify as a first-time buyer
Generally, you qualify if neither you nor your spouse occupied a home you owned in the four calendar years before the withdrawal. The funds must also have been in your RRSP for at least 90 days.
Buy or build within the deadline
You must buy or build a qualifying home by October 1 of the year after your withdrawal, and intend to live in it as your principal residence within one year.
Repay over 15 years
Repayments start the fifth year after withdrawal (a grace period recently extended for many buyers) at 1/15 per year. Miss a year's repayment and that amount is added to your taxable income.
Is it worth it?
Usually yes, a bigger down payment can push you below the 20% insurance threshold and save thousands in CMHC premiums, and you repay yourself rather than a lender. The trade-off is the retirement growth those funds miss while they're out of the market.
We'll run both scenarios with you, alongside the FHSA, before you commit.
Program rules, limits and tax rates change. This guide is general information, not financial or legal advice, confirm the current numbers with us or your advisor before acting.
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