What the Home Buyers' Plan does
The Home Buyers' Plan lets eligible buyers withdraw RRSP funds to buy or build a qualifying home, subject to CRA conditions. It can improve cash-to-close when savings are inside an RRSP.
It is not free money. Withdrawals normally need to be repaid over time, and missed repayments can become taxable income.
Withdrawal limit and timing
CRA states the HBP withdrawal limit is $60,000 for withdrawals made after April 16, 2024. Eligibility, forms, timing, and repayment rules still apply.
Do not assume every RRSP deposit is immediately usable. If you are planning an RRSP contribution or transfer before purchase, confirm timing with CRA guidance and your tax advisor before relying on those funds.
RRSP HBP vs FHSA
The FHSA is often more attractive for eligible first-time buyers because qualifying withdrawals can be tax-free without the same repayment obligation. RRSP HBP can still help if you already have RRSP savings or want to stack sources.
The right answer is usually a source stack: savings, FHSA, RRSP HBP, gifts, and closing-cost buffer, all documented clearly for the lender.
| Source | Strength | Watch-out |
|---|---|---|
| FHSA | Tax-deductible contributions and tax-free qualifying withdrawals | Eligibility and contribution room |
| RRSP HBP | Access existing RRSP savings for a first home | Repayment obligation and timing rules |
| TFSA / cash | Flexible and simple for documentation | No RRSP/FHSA deduction advantage |
First-home account comparison
Mortgage qualification impact
Using existing RRSP savings generally does not create a new debt payment, but borrowing money to contribute to an RRSP can. If an RRSP loan is involved, the lender may include that payment in your debt ratios.
A first-home plan should model the down payment, closing costs, emergency buffer, and any new payment obligations before the offer is written.
A practical strategy
Use the RRSP HBP when it genuinely improves the purchase without draining long-term savings too far. Avoid using every available dollar if it leaves no room for inspections, adjustments, moving costs, or post-closing repairs.
Pragmatic Mortgage Lending can map FHSA, RRSP HBP, gifts, savings, closing costs, and lender documentation into one cash-to-close plan.
Frequently asked questions
How much can I withdraw from my RRSP under the Home Buyers' Plan?
CRA states the limit is $60,000 for eligible withdrawals made after April 16, 2024. Confirm eligibility and forms before relying on the funds.
Can I use FHSA and RRSP Home Buyers' Plan funds together?
CRA says qualifying FHSA withdrawals and RRSP HBP withdrawals can be used for the same qualifying home if conditions are met for each program.
Does an RRSP loan help me qualify?
Not automatically. If you borrow to contribute to an RRSP, that loan payment can reduce borrowing power. Model the debt before using the strategy.
What is the 90-day rule for RRSP HBP withdrawals?
Funds must generally be in the RRSP for at least 90 days before withdrawal under the HBP. If you contribute to an RRSP specifically to use the HBP, ensure the contribution date allows the 90-day period to pass before your closing date. Contributions made less than 90 days before withdrawal may not be deductible and may not qualify for the HBP withdrawal.
What happens if I miss an RRSP HBP repayment?
If you miss the required annual repayment — typically 1/15th of the withdrawn amount each year starting the second year after withdrawal — the missed amount is added to your taxable income for that year. You lose the ability to re-contribute that portion to your RRSP later. CRA sends an annual HBP statement showing your remaining balance and required repayment.
Should I use FHSA, RRSP HBP, or both for my first home?
In most cases, FHSA should be used first because qualifying withdrawals are tax-free with no repayment obligation. RRSP HBP is a strong secondary source if you already have RRSP savings and want to access them without triggering a taxable withdrawal. Using both together is allowed and can be the optimal stack when you have room in both accounts and the repayment obligations are manageable within your post-purchase budget.
Build your first-home funding plan
FHSA, RRSP HBP, savings, gifts — a Pragmatic Mortgage broker maps the full source stack, models qualification, and makes sure nothing surprises your lender.
