Can I use my RRSP to help buy my first home in Ontario?
Yes. The federal Home Buyers' Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their registered retirement savings plan (RRSP) on a tax-free basis to put toward the purchase of a qualifying first home. If you are buying with a spouse or common-law partner who also qualifies, each of you can withdraw up to $60,000, for a combined total of up to $120,000.
To qualify, you must be a first-time buyer as defined under the federal Income Tax Act (generally, you have not lived in a home you or your current spouse owned in the current year or the prior four years). The funds must have been in your RRSP for at least 90 days before withdrawal.
After you move in, you have a repayment period of 15 years to return the withdrawn funds to your RRSP (starting two years after the year of withdrawal). If you do not repay a scheduled amount in a given year, it is added to your taxable income for that year.
Key takeaways
- The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 from an RRSP.
- Each qualifying co-buyer can withdraw separately — up to $120,000 combined.
- RRSP funds must have sat in the account for at least 90 days.
- Repayment is required over 15 years or the amount becomes taxable income.