RRSP Home Buyers’ Plan


Generally, the funds in your RRSP need to stay there until you retire for it to make financial sense, as there are penalties for early withdrawals. However, the RRSP Home Buyers’ Plan (HBP) is one exception to that rule, at least for first time home buyers.

With the Home Buyers’ Plan, you can withdraw up to $35,000 ($70,000 for a couple) from your RRSP for a down payment on a home, tax-free, which can make owning a home much more financially achievable.

By saving through your RRSP, you also receive a tax deduction that may give you a refund at tax time allowing you to add even more to your down payment savings pool.

If you’re thinking of using the RRSP Home Buyers’ Plan, there are a few things you should know. 

  • Any money you withdraw has to be in your RRSP for at least 90 days. If the money doesn’t sit in your RRSP for at least 90 days, it may not be tax-deductible that year.
  • You must make the withdrawal within 30 days of taking ownership of the home.
  • You can make withdrawals from several RRSPs, so long as you are the owner of each plan. However, you have to receive all withdrawals in the same calendar year.
  • Your first repayment isn’t due until 2 years after you make your withdrawal, and the full amount must be repaid within 15 years after that.

As a first-time home buyer, it can be difficult to scrape together enough cash for a down payment on a home. However, if you’ve been diligent in your RRSP contributions, then the Home Buyer’s Plan is a great way to unlock the potential of your savings.

If you have questions on the Home Buyers’ Plan or using your RRSP’s for your down payment, feel free to give me a call at 780-288-0643.

Tatum Neufeld, BComm
Mortgage Broker • Mortgage Tailors
[email protected]

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Oh hey there! I’m Tatum.

Whether you are looking to buy a home, renew an existing mortgage, refinance to pull out equity, consolidate debt, or finance revenue properties, I’ll give you personalized advice and creative mortgage solutions based on your financial situation.


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A Guide to Buying Your First Home