What is the RRSP Home Buyers’ Plan (HBP)?<\/h2>\n\n\n\n![\"home](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2023\/03\/homebuyers-plan.png\")
<\/figure>\n\n\n\nCurrently, the HBP allows first-time homebuyers to withdraw up to $60,000 from their RRSP savings to purchase or build a home<\/strong> without paying tax on that withdrawal. A couple can withdraw up to $60,000 each, for a total of $120,000 to buy a house. So long as they each qualify as a first-time homebuyer, of course. <\/p>\n\n\n\nRelated content<\/p>
Down Payment Assistance Programs in Canada<\/a><\/p><\/section>\n\n\n\nThe loan is considered tax-free, and you have 15 years to pay back the total amount. But now that you\u2019re ready to enter the real estate market, how do you use your RRSP for that down payment<\/a>? Let\u2019s start with the basics.<\/p>\n\n\n\nWho Qualifies For the Home Buyers’ Plan?<\/h2>\n\n\n\n
The qualifications to be eligible for the Home Buyers\u2019 Plan are pretty simple:<\/p>\n\n\n\n
- You must be a first-time homebuyer<\/strong> who is a resident of Canada<\/li>
- You must have a document stating that you are buying or building a home for your personal use<\/strong> in the same calendar year that you withdraw your RRSP money (under the HBP)<\/li>
- Alternatively, you can participate in the HBP if you are buying or building a home for a specified disabled person<\/a>, even if you or they are not a first-time homebuyer<\/li><\/ul>\n\n\n\n
A first-time homebuyer<\/a> is someone who has not owned a property in the previous four calendar years and has not occupied a home that their spouse or common-law partner owns in the last four calendar years. <\/p>\n\n\n\nFor those who qualify for the HBP, there are a few rules to follow. First, if you plan on building a home, the property must be completed and suitable to be lived in before October 1st, one year after you withdraw your RRSP funds under the HBP. If the property is not ready by that date, you may cancel the HBP or choose to buy or build a different home.<\/p>\n\n\n\n
You can participate in the Home Buyers\u2019 Plan more than once, provided your HBP repayment balance is zero, and you meet all other HBP eligibility requirements.<\/p>\n\n\n\n
How Do You Withdraw From Your RRSP Under the HBP?<\/h2>\n\n\n\n![\"a](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2022\/01\/rebuild-your-finances-1024x683.jpg\")
<\/figure>\n\n\n\nAfter ensuring you are eligible to participate in the Home Buyers\u2019 Plan, the next step is to withdraw the funds. <\/p>\n\n\n\n
First, you must have a written agreement to buy or build a qualifying home at the time of your withdrawal. Any funds you wish to withdraw must have been in your RRSP account for at least 90 days.<\/p>\n\n\n\n
Next, you must fill out Form T103, Home Buyers\u2019 Plan (HBP) Request to Withdraw Funds from an RRSP<\/a>. The best option is to book an appointment with the financial advisor where you hold your RRSP. From there, they should be able to provide you with the form and the next-step instructions on how to complete this process.<\/p>\n\n\n\nRelated content<\/p>
What to Expect at Real Estate Closing<\/a><\/p><\/section>\n\n\n\nAfter you submit your request, it may take a few days or several weeks to process your application and deposit the money into your account.<\/p>\n\n\n\n
On closing day, you\u2019ll use those funds to pay your down payment. Additionally, you can request to withdraw funds under the HBP up to 30 days after your closing date.<\/p>\n\n\n\n
Repaying The Withdrawn Funds<\/h2>\n\n\n\n
Under the Home Buyers\u2019 Plan, you need to repay any amount withdrawn from your RRSP within 15 years. Typically, the repayment starts the second year after your first withdrawal. For example, if you withdrew in 2020, your first year of repayment was 2022.<\/p>\n\n\n\n
However, if you participate in the HBP between January 1st, 2022 and December 31st, 2025, the repayment period can be deferred an additional three years. For instance, if you withdraw in 2025, your first repayment will be due in 2030.<\/p>\n\n\n\n
<\/figure>\n\n\n\nCurrently, the HBP allows first-time homebuyers to withdraw up to $60,000 from their RRSP savings to purchase or build a home<\/strong> without paying tax on that withdrawal. A couple can withdraw up to $60,000 each, for a total of $120,000 to buy a house. So long as they each qualify as a first-time homebuyer, of course. <\/p>\n\n\n\n Related content<\/p> Down Payment Assistance Programs in Canada<\/a><\/p><\/section>\n\n\n\n The loan is considered tax-free, and you have 15 years to pay back the total amount. But now that you\u2019re ready to enter the real estate market, how do you use your RRSP for that down payment<\/a>? Let\u2019s start with the basics.<\/p>\n\n\n\n The qualifications to be eligible for the Home Buyers\u2019 Plan are pretty simple:<\/p>\n\n\n\n A first-time homebuyer<\/a> is someone who has not owned a property in the previous four calendar years and has not occupied a home that their spouse or common-law partner owns in the last four calendar years. <\/p>\n\n\n\n For those who qualify for the HBP, there are a few rules to follow. First, if you plan on building a home, the property must be completed and suitable to be lived in before October 1st, one year after you withdraw your RRSP funds under the HBP. If the property is not ready by that date, you may cancel the HBP or choose to buy or build a different home.<\/p>\n\n\n\n You can participate in the Home Buyers\u2019 Plan more than once, provided your HBP repayment balance is zero, and you meet all other HBP eligibility requirements.<\/p>\n\n\n\n After ensuring you are eligible to participate in the Home Buyers\u2019 Plan, the next step is to withdraw the funds. <\/p>\n\n\n\n First, you must have a written agreement to buy or build a qualifying home at the time of your withdrawal. Any funds you wish to withdraw must have been in your RRSP account for at least 90 days.<\/p>\n\n\n\n Next, you must fill out Form T103, Home Buyers\u2019 Plan (HBP) Request to Withdraw Funds from an RRSP<\/a>. The best option is to book an appointment with the financial advisor where you hold your RRSP. From there, they should be able to provide you with the form and the next-step instructions on how to complete this process.<\/p>\n\n\n\n Related content<\/p> What to Expect at Real Estate Closing<\/a><\/p><\/section>\n\n\n\n After you submit your request, it may take a few days or several weeks to process your application and deposit the money into your account.<\/p>\n\n\n\n On closing day, you\u2019ll use those funds to pay your down payment. Additionally, you can request to withdraw funds under the HBP up to 30 days after your closing date.<\/p>\n\n\n\n Under the Home Buyers\u2019 Plan, you need to repay any amount withdrawn from your RRSP within 15 years. Typically, the repayment starts the second year after your first withdrawal. For example, if you withdrew in 2020, your first year of repayment was 2022.<\/p>\n\n\n\n However, if you participate in the HBP between January 1st, 2022 and December 31st, 2025, the repayment period can be deferred an additional three years. For instance, if you withdraw in 2025, your first repayment will be due in 2030.<\/p>\n\n\n\nWho Qualifies For the Home Buyers’ Plan?<\/h2>\n\n\n\n
How Do You Withdraw From Your RRSP Under the HBP?<\/h2>\n\n\n\n
<\/figure>\n\n\n\nRepaying The Withdrawn Funds<\/h2>\n\n\n\n
![\"pros](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2025\/03\/RRSP-down-payment-pros-cons.png\")
<\/figure>\n\n\n\n