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Using your RRSP for a Mortgage Down Payment: Home Buyers Plan (HBP) | Scott Dawson
(778) 668-9320 [email protected]

Many first-time home buyers use all or a portion of their RRSP savings to help with a down payment when purchasing a property. With the Canadian Governments Home Buyers’ Plan, you can use up to $25,000 in RRSP savings ($50,000 for a couple) for a down payment on your first home. You then have 15 years to repay your RRSP.

To qualify, the RRSP funds must be have been on deposit for at least 90 days.

Even if you have already saved for your down payment outside of your RRSP, it may make financial sense to make a one time lump sum deposit into your RRSP’s and then access them when you are ready to purchase a home by taking advantage of the Home Buyers’ Plan.

For example, if you have saved $25,000 for a down payment outside of your RRSP— and assuming you still had enough “contribution room” in your RRSP for a contribution of that amount you could move your savings into a registered investment for 90 days before your closing date. Then, withdraw the money through the Home Buyers’ Plan when you complete on your purchase.

Your $25,000 RRSP contribution will then count as a tax deduction for the current taxation year and you can use any tax refund you receive to repay the RRSP or other expenses related to buying your home.

Home Buyers’ Plan (HBP)