Home Buyers' Plan: Who Qualifies and What You Get
Learn how you can withdraw funds from your RRSP tax-free to help pay for your first home down payment.
The Home Buyers' Plan allows you to use your savings to help purchase your first home.
Who it's for
This plan is designed for first-time home buyers who have funds available in a Registered Retirement Savings Plan (RRSP).
What you get
You can withdraw a significant amount of money from your RRSP—up to $60,000—without paying taxes on that withdrawal. This money is intended to be used specifically for a down payment on your new home.
What it costs you
While the initial withdrawal is tax-free, this is not a grant; it is a loan from your own retirement savings. You must repay the full amount you withdrew back into your RRSP over a period of 15 years.
The catch to know
You must stay on top of your repayment schedule. If you miss a repayment deadline, the amount you were supposed to pay back will be added to your taxable income for that year, which could lead to a higher tax bill.
How to apply
- Confirm you meet the first-time home buyer criteria.
- Check your RRSP account to ensure you have sufficient funds available.
- Follow the official process to request an RRSP withdrawal for the plan.
- Set up a plan to repay the funds over the following 15 years.
For more details, visit the official portal: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html