Mortgage Education

Can I Use My RRSP To Help Buy My First Home?

can I use my rrsp

Congratulations on taking the first steps in purchasing your first home. The time has come, and you are ready to be a homeowner, but you may be more ready than you think. When it comes to buying your first home, you can use your RRSP to help purchase it. This is called the Home Buyer’s Plan. The Home Buyers Plan allows you to withdraw from your registered retirement savings plan for up to $25,000 to build or buy your first home.

Let’s take a closer look at how it works:

What is the Home Buyer’s Plan?

The Home Buyer’s Plan is designed to allow qualified first time homebuyers to purchase or build their first residence, by withdrawing up to $25,000 from their RRSP. This is considered to be a tax-free withdrawal.  Certain conditions apply.


In order to participate the person withdrawing from the RRSP must be the owner of the account.  In most cases locked or group accounts are not eligible for a withdrawal.
When applying for the Home Buyer’s Plan you must meet the following conditions:

  • You must be a first-time homebuyer.
  • You must enter into a written agreement to buy or build your first home. Note that being pre-approved for a mortgage is not ample proof in meeting this condition.
  • You must intend to occupy the qualifying home as your principal residence within one year.
  • You have a zero repayable balance on the first day of the calendar year of planned withdrawal.

Once you have been deemed eligible to withdraw from your RRSP as part of the Home Buyer’s Plan you must meet the following conditions:

  • You are a resident of Canada
  • You cannot own qualifying residence more than 30 days prior to withdrawal. The residence must be built or purchased by October 1st of the calendar year the withdrawal.
  • You have filled out the T1036 Form for each eligible withdrawal.
  • You cannot withdraw more than $25,000 from your RRSP
  • All withdrawals must be made within the same calendar year.

How to Make a Withdrawal

When you make a withdrawal from your RRSP as part of the Home Buyer’s Plan you must meet all of the conditions stated above. Then fill out your T1036 form and give it to your RRSP issuer. Once it passes through the issuer you can withdraw from your RRSP. You will then receive a T4RRSP form as a receipt of your withdrawal. Repeat for each withdrawal. File your T4RRSP with your annual tax return to receive benefits.

If you have questions about using your RRSP’s to help buy your first home, you can contact us here or call at 647-795-8700 to speak to one of our mortgage professionals.