Use Your RRSP to Help Buy Your Home

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Did you know that you can borrow up to $35,000 from your RRSP to buy or build a qualifying home through the Home Buyer’s Plan?

If you buy the home with your spouse, common-law partner, or other individuals, each of you can withdraw up to $35,000. Income tax will not be deducted from the amount withdrawn, and the withdrawal amount will not be included in your income.

 Qualifying for the Home Buyer’s Plan

  • You or your spouse or common-law partner have not owned a home which you occupied as your principal residence during the four years preceding the withdrawal for the Home Buyers' Plan, or
  • You are buying or building a home for a related disabled person.
  • Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the Home Buyers' Plan, or the contributions may not be deductible for any year.
  • You must buy or build the qualifying home by October 1 of the year after the year of withdrawal. 
  • You must occupy the home as your principal residence no later than one year after building or purchasing it. 


There are some conditions that must be met before applying to withdraw funds and other conditions must be met when a withdrawal is made. One of the conditions that must be met before applying to withdraw funds is that you must enter into a written agreement to buy or build a qualifying home.

For more information, see the Canada Revenue Agency (CRA) information on the Home Buyers' Plan (HBP), including conditions for participating in the HBP.


Repayment of funds borrowed from your RRSP

  • The funds must be repaid to your RRSP over a maximum of 15 years, starting no later than the second year following the year in which they are withdrawn. 
  • Each year that a repayment is due but not paid, the amount due (1/15th of the amount borrowed) will be included in your taxable income.
  • An RRSP contribution made in the year of the HBP withdrawal, even prior to the HBP withdrawal, can be designated as a repayment of the HBP.


See Important Dates for RRSP, RDSP, HBP and LLP on the Canada Revenue (CRA) website. 


Authored by Dave Lougheed of Lougheed Wealth Management, a preferred partner of Jencor. For more financial advice, visit