RRSP as Down Payment

Each First Time Buyer may borrow up to $25,000 from their RRSP under the Home Buyers’ Plan. (The funds must have been in the RRSP for at least 90 days prior to withdrawal to be eligible under the program)

Provided you buy or build a qualifying home and meet all of the conditions for making a withdrawal under the Home Buyers’ Plan, you can use the particular funds you withdrew under the Home Buyers’ Plan for other purposes. (Not only down payment and closing cost, but for any other purpose you choose.)

This program is available to first time home buyers only. (You are considered a first time home buyer if, at any time during the period beginning January 1, 1995 and ending 31 days prior to your withdrawal from your RRSP, you did not own a home.

View Rogers TV Interview with Elfie.

Repayment of the funds to your RRSP can be made over 15 years. (The repayment period starts the 1st full year following the year of withdrawal)

If the amount is not repaid in a year, that year’s repayment amount will be added to your income and taxed.

In order for the home to qualify it must be located in Canada and intended to be used as your principal residence.

For more information go to http://www.cra-arc.gc.ca and reference the Homebuyer's Plan.

If you use a Telecommunication Device for the deaf (TDD), you can get tax information by calling the toll-free, bilingual TDD enquiry service at: 1-800-665-0354