RRSP Home Buyer’s Plan

How To Save With Your RRSP And Home Purchase

The Home Buyer’s Plan (HBP) is a government program that allows home buyers to withdraw up to $25,000 from their Registered Retirement Saving’s Plan (RRSP) to put towards buying or building a new home.

You Must Occupy Within A Year

Before you can withdraw funds, you have to be entered into a written agreement that specifies whether you will be buying or building your new home. You also must occupy this space no later than a year after buying or building this new home.

You Have to Be Considered a First-time Home Buyer

To take advantage of this program you have to be considered a first-time buyer. You are not a first-time home buyer if you (or you and your spouse) has owned a home which you have occupied as your principal place of residence in the past 5 years.
Learn More About The First-Time Home Buyer Program

Withdraw up to $25,000 Tax-free from Your RRSP

Once those conditions are met each person can withdraw up to $25,000 tax-free from their RRSP for a new home. Couples, including common-law, can withdraw up to $50,000. You will not pay income tax on these amounts as long as these funds will be repaid into an RRSP in the future.

Disability Tax Credit (DTC)

Existing homeowners can also use this program to purchase an accessible home or a home for a disabled dependent relative. The intended individual must qualify for the Disability Tax Credit (DTC) and this home must be more accessible or better suited to the care of this individual.