Using RRSP money to purchase or build a home

Expansion of the Home Buyers’ Plan (HBP)

The HBP is a program that allows you to withdraw funds from your registered retirement savings plans (RRSPs) to buy or build a qualifying home. You can withdraw up to $25,000 in a calendar year

The home can be for you, or it can be for a related person with a disability. If the home is acquired by a person with a disability or for a related person with a disability, one of the following should apply:

• it is more accessible to that person than his or her current home; or
• it is better suited to that person’s needs.

As an HBP participant, you can acquire the home for the related person with a disability, or you can provide the withdrawn funds to the related person with a disability to help them acquire the home.

You do not have to include eligible withdrawals in your income, and your RRSP issuer will not withhold tax on these amounts. You can withdraw a single amount or make a series of withdrawals throughout the same calendar year, provided the total of your withdrawals is not more than $25,000. If you buy the qualifying home with your spouse or common-law partner, or with other individuals, each of you can withdraw up to $25,000.

Visit CRA Home Buyer Plan for more info

Looking for More Homebuying Information?

When it comes to buying your home, nothing is more valuable than peace of mind. That’s why for more than 60 years, CMHC has shared a wealth of knowledge and housing expertise to contribute to a positive homeownership experience for Canadians. Browse through our wealth of homebuying information. You’ll find everything you need, from homebuying videos, to mortgage calculators, to home hunting worksheets.
CMHC also provides mortgage loan insurance that enables you to buy a home with a minimum down payment of 5%” — with interest rates comparable to those with a 20% down payment. Obtain a 10% premium refund and extend the amortization period without a premium surcharge when using CMHC-insured financing to purchase an eligible energy-efficient home. This can add up to savings of $1,688 for a typical $250,000 mortgage with a 5% down payment amortized over 35 years. Ask your mortgage professional about CMHC.