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Grow your down payment with RRSP funds through the Home Buyers’ Plan

May 20, 2022 3 min read

Are you a first-time home buyer looking to buy the home of your dreams? The hot market combined with rising inflation and interest rates may make saving for the down payment more of a challenge. If so, you’ll want to know about the federal government’s Home Buyers’ Plan (HBP). This program lets you use up to $35,000 of your RRSP savings toward a down payment on a qualifying home. Not only will you be able to reduce the amount of your mortgage, you may also be able to avoid default insurance premiums if you have at least a 20% down payment.

The Details:

  • You must qualify as a first-time home buyer
  • Your RRSP funds must be on deposit for at least 90 days before you withdraw them
  • You must have a written agreement to buy or build a qualifying home
  • You are required to pay back the withdrawn funds within a 15-year period
  • If you pay back the money within the 15 years, the funds are not taxable

Keep in mind:

  • Automating your RRSP contributions will help you keep your repayment schedule
  • You must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it
  • Even if you have previously participated in the HBP, you may be to do so again if your repayable HBP balance on January 1st is zero and you meet all other HBP conditions

One Grand Plan:

Did you know our One Grand Plan can also help you get in to your first home sooner? This simple and effective program helps you put away at least $100 per month to build your savings. And if you meet the program’s conditions, we’ll give you $1000 toward your down payment!

“Saving for a home may seem like a challenge, but like anything, building your down payment takes small steps and a variety of strategies to make it achievable,” says Cindi Levine, Mobile Mortgage Manager for Coastal Community. “Ask us how you can start today!”