Your home is eligible if you buy or build it:
- Before October 1 during the year after the year you withdrew from your RRSP
- Alone or with one or more individuals
Withdraw up to $60,000 from your RRSP to buy your first home.
Did you know you can use your RRSP to buy a home? The Home Buyers' Plan (HBP) lets you withdraw funds from your RRSP for a down payment and pay it back later.
To qualify:
Tip
Take out a mortgage loan with a down payment as low as 5% of the property value.
$60,000 per person
Amounts over $60,000 must be declared as income for the current year. Couples can withdraw a total of $120,000 for a down payment on a property.
Tip
Need to top up your down payment? An RRSP loan or line of credit can help you get to $60,000. Note that your loan balance will come due once you withdraw from your RRSP.
15 year maximum
After the end of the fifth year, you must repay one fifteenth of the amount withdrawn on an annual basis for the next 15 years. You can also pay it back in full at any time. Note that your repayments are not counted as RRSP contributions and are therefore not tax deductible.
Tip
Instead of making lump sum payments once a year, set up systematic savings to pay back your balance on the schedule that suits you best.
Talk to one of our mortgage specialists to learn about your financing options.
Your home is eligible if you buy or build it:
Finance your down payment with an RRSP loan or line of credit1 to take advantage of the HBP.
Here's how:
FHSA
The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers.
No repayment required
No withdrawal limit
Maximum annual contributions of $8,000 and a lifetime total of $40,000
No minimum holding period required for contributions to be deductible and eligible for withdrawal
The deadline for contributions to a FHSA is December 31 of each year
HBP
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP to buy or build a first home.
Repayment required
Withdrawal limit of $60,000
Maximum annual contributions of the RRSP, which is 18% of your previous year’s income or the current fixed contribution limit
The money must be deposited into your RRSP 90 days before you withdraw it under the HBP
Deadline for RRSP contributions: 60 days after the end of the year
Good to know
You can combine the FHSA and HBP.
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Our specialists can guide you through every step of the process, and can even come to you.