Using Your RRSP To Help Buy A Home

Jen & Cory • December 3, 2019

Did you know that you can use your RRSP to help buy a home? In fact, you can, it’s called the RRSP Home Buyer’s Plan (or HBP for short). Here are a few things you need to know!

It needs to be your first home (with some exceptions). Technically, you must not have owned a home in the last four years or have lived in a home that your spouse owned in the last four years. There’s an exception to this: those with a disability OR those helping someone with a disability can withdraw from an RRSP for a home purchase at any time.

You have 15 years to pay back the RRSP - and you’ll start the second year after the withdrawal. While you won’t pay any tax on this particular withdrawal, it does come with some conditions. You’ll have to pay back the full amount you withdrew over 15 years - the CRA will send you an HBP Statement of Account every year to advise how much you owe the RRSP that year. Your repayments will not count as contributions - you’ve already received the tax break from those funds.

The funds you withdraw from the RRSP must have been there for 90 days. This is a rule not many people are aware of, but it’s pretty important. You can still technically withdraw the money and use it for your down-payment, but it won’t be tax deductible, and won’t be considered to be part of the HBP. Any funds contributed within 90 days changes nothing - the contribution was completely meaningless. For most people, just a little bit of pre-planning would have given a decent tax deduction in a year they could have really used it.

You can access up to $25,000 ($50,00 per couple) . But that amount is increasing. According to the CRA website ,the 2019 budget plans to increase the total amount for individual withdrawal to $35,000 after March 19th, 2019.

If you would like to know more about how the HBP could work for you, please don't hesitate to contact us anytime!

Jen & Cory
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Down Payment Options for Canadian Homebuyers

By Jen & Cory • April 22, 2026
For most Canadians, the down payment is the biggest hurdle to homeownership. A down payment is the initial amount you contribute toward your property purchase, while the lender covers the rest through a mortgage. By law, Canadian lenders can only finance up to 95% of a property’s value, which means you’ll need at least 5% down to qualify. If you’re putting down less than 20%, your mortgage must be insured through one of Canada’s three default insurance providers— CMHC, Sagen (formerly Genworth), or Canada Guaranty . This insurance comes at a cost, but it can be rolled into your mortgage amount. The less you put down, the higher the premium. Since saving a down payment can feel overwhelming, it helps to know the different sources you can draw from. Here are the most common options available to Canadian homebuyers: 1. Savings & Personal Resources The most straightforward source is your own savings. Lenders will ask to see a 90-day history of the funds in your account. Any large deposits outside of regular payroll must be explained with documentation—such as the sale of a vehicle or a transfer from an investment account. This requirement isn’t just red tape; it’s part of Canada’s anti-money laundering rules. 2. Proceeds from the Sale of a Property If you’ve recently sold another home, you can use the proceeds as a down payment on your new purchase. Proof of the sale—such as the final statement of adjustments from your lawyer—will be required. 3. RRSP Home Buyers’ Plan (HBP) First-time buyers can withdraw up to $35,000 each (or $70,000 as a couple) from their RRSPs to put toward a down payment under the federal Home Buyers’ Plan . The funds are withdrawn tax-free, but they must be repaid over a 15-year period. This is a popular option for buyers who have been steadily contributing to their retirement savings. 4. Gifted Down Payment With today’s housing prices, many buyers turn to family for help. A parent or immediate family member can provide a gift that makes up part—or even all—of the required down payment. The lender will require a signed gift letter confirming that the money is a true gift (with no repayment expected) and proof that the funds have been deposited into your account. 5. Borrowed Down Payment In some cases, you may be able to borrow your down payment. This option is usually available only if you have strong credit and sufficient income. The payments on the borrowed funds are factored into your debt service ratios, so affordability is key. Lenders typically use 3% of the outstanding balance when calculating the additional payment. The Bottom Line A down payment doesn’t have to come from just one source—it can be a combination of savings, gifted funds, RRSPs, or other resources. What matters most is being able to show where the money came from and that it meets lender requirements. If you’d like to explore your options or learn how much you might qualify for, it’s never too early to start the conversation. Connect with us today—we’d be happy to help you create a plan and take the first steps toward homeownership.