How much can I withdraw under the Home Buyers' Plan?

As of 2024 the limit is $60,000 per individual. A couple where both partners qualify can each withdraw up to $60,000, for a combined $120,000.

Do I have to pay the money back?

Yes. You repay the withdrawal to your RRSP over up to 15 years, starting the second year after you withdrew. Each year the CRA sets a minimum amount, and any shortfall is added to your taxable income.

Can I use the HBP if I have owned a home before?

Usually you must be a first-time home buyer, meaning you have not owned a home you lived in during the current year or the four preceding calendar years. Certain exceptions apply, such as buyers with a disability or those re-qualifying after a long gap.

Mortgage Glossary

What is RRSP Home Buyers' Plan?

The RRSP Home Buyers' Plan (HBP) is a Canadian government program that lets you withdraw funds from your Registered Retirement Savings Plan to buy or build a qualifying home without paying tax on the withdrawal. As of 2024, you can take out up to $60,000, and a couple buying together can withdraw up to $120,000 combined. The amount must be repaid to your RRSP over 15 years.

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Quick answer

Also known as: HBP, Home Buyers' Plan

Key points

As of 2024 you can withdraw up to $60,000 per person ($120,000 per couple) tax-free.
You generally must be a first-time home buyer purchasing a principal residence in Canada.
Funds usually must sit in your RRSP for at least 90 days before withdrawal.
Repayment is spread over 15 years, beginning the second year after the year of withdrawal.
Missing a year's minimum repayment adds the shortfall to your taxable income for that year.

RRSP Home Buyers' Plan explained

The Home Buyers' Plan is administered through the Canada Revenue Agency and is one of the most common ways first-time buyers boost their down payment. Instead of cashing out retirement savings and triggering a tax bill, you borrow from yourself: the withdrawal is tax-free at the time, provided you follow the repayment rules. You generally must be a first-time home buyer, the home must be in Canada and intended as your principal residence, and the funds must have been in your RRSP for at least 90 days before withdrawal.

Repayment begins the second year after the year of withdrawal and stretches over a maximum of 15 years. Each year the CRA tells you the minimum amount due. If you repay less than the required amount in a given year, the shortfall is added to your taxable income for that year, so it pays to stay on schedule.

What a RRSP Home Buyers' Plan is for

The HBP exists to help Canadians turn long-term retirement savings into a larger down payment without the tax penalty that would normally apply to an RRSP withdrawal. A bigger down payment can mean a smaller mortgage, lower or no mortgage insurance premiums if you reach key thresholds, and stronger qualifying numbers.

How it can help you

Using the HBP can be the difference between scraping together a minimum 5% down payment and putting down a more comfortable amount. A larger down payment lowers your loan-to-value ratio and monthly payment, which improves your debt service ratios at qualification. When you are comparing offers, Lenderoo shops 40+ lenders for free, so you can see how a stronger down payment from your RRSP changes the rates and terms you qualify for.

When it comes up

A first-time buyer has $45,000 in an RRSP and another $20,000 in a savings account. By withdrawing the RRSP funds under the HBP, they combine both sources for a $65,000 down payment, pushing their down payment above 5% and reducing the mortgage they need to carry.

Example: Couple using the HBP

Two first-time buyers each have $40,000 in their RRSPs. Together they withdraw $80,000 tax-free under the Home Buyers' Plan and add $20,000 in cash savings, for a $100,000 down payment on a $500,000 home.

That is a 20% down payment, which makes the mortgage conventional and avoids mortgage insurance premiums. Starting the second year after withdrawal, they must each repay 1/15th of their withdrawal annually back into their RRSPs to stay onside with the CRA.

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Questions & answers

RRSP Home Buyers' Plan: frequently asked questions

Common questions Canadians ask about rrsp home buyers' plan.

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