TRENDING: Beedie Breaks Ground On 60-Acre Surrey Industrial Park

First-Time Home Buyer RRSP Withdrawal

Learn how first-time buyers can use the RRSP Home Buyers’ Plan in Canada to withdraw funds for a down payment and what rules apply.

First-Time Home Buyer RRSP Withdrawal

May 22, 2025


What is the First-Time Home Buyer RRSP Withdrawal?

The First-Time Home Buyer RRSP Withdrawal, also known as the Home Buyers’ Plan (HBP), allows eligible Canadians to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to buy or build their first home.

Why the First-Time Home Buyer RRSP Withdrawal Matters in Real Estate

This program provides a valuable resource for first-time buyers by enabling them to access retirement savings without immediate tax consequences.

Key features include:
- Withdraw up to $35,000 (or $70,000 per couple)
- Funds must be repaid to the RRSP over 15 years
- No tax withheld at withdrawal if conditions are met
- Must not have owned a home in the past four years

To qualify, the buyer must have a written agreement to buy or build a qualifying home. The withdrawn funds can be used for the down payment or other purchase-related expenses.

The repayment schedule begins the second year after withdrawal, with annual minimum payments. If a repayment is missed, the amount is added to the person’s taxable income for that year.

The HBP helps reduce borrowing needs and makes it easier to afford a first home. However, it’s important to understand the long-term impact on retirement savings and stay on track with repayments to avoid tax penalties.

Example

A first-time buyer withdraws $25,000 from their RRSP for a down payment. They repay $1,667 annually over 15 years to avoid tax on the withdrawal.

Key Takeaways

  • Withdraw up to $35,000 from RRSP tax-free.
  • Must be repaid over 15 years.
  • Useful for down payments.
  • Helps reduce mortgage size and interest.
  • Must meet first-time buyer eligibility.

Related Terms

  • Home Buyer’s Plan (HBP)
  • Down Payment
  • RRSP
  • First-Time Home Buyer Incentive
  • Tax-Free Savings Account (TFSA)

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Bank Of Canada Holds Interest Rate At 2.25% In July

Bank Of Canada Holds Interest Rate At 2.25% In July
Bank of Canada at 234 Wellington Street in Ottawa

On July 15, the Bank of Canada held its overnight rate at 2.25%, pointing to early signs of a broadening economic recovery.

Policymakers say the economy is starting to turn a corner after a rough stretch shaped by tariffs, elevated uncertainty, and slower population growth — the labour market has stayed soft throughout, with unemployment at 6.5% in June, part of a range that's held since late 2024.

Keep Reading Show less

In Canada's West, This Developer Is Building More Than Houses

In Canada's West, This Developer Is Building More Than Houses

Carrington, Calgary (Mattamy Homes)

There's a version of new home construction that most buyers know well: a patchwork of builders, a streetscape that never quite coheres, a construction zone that lingers years after move-in.

Mattamy Homes has spent decades building something different. And in Calgary and Airdrie, that difference is on full display across four communities where the builder controls every stage of development, from land through to the homes, parks, and pathways that help define daily life.

Keep Reading Show less

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

New development proposals continue to pop up along the Fraser Highway corridor, as the Surrey-Langley SkyTrain currently under construction is expected to bring forth waves of new development.

On Monday, Surrey City Council considered a new rezoning application submitted by 1098261 BC Ltd. for a land assembly consisting of 15284 and 15296 Fleetwood Drive, located near the intersection of Fraser Highway and Fleetwood Way.

Keep Reading Show less

Minto Shifts To Purpose-Built Rental For Five-Tower Mimico Proposal

Minto Shifts To Purpose-Built Rental For Five-Tower Mimico Proposal

Rendering of Grand Park Village in Mimico/Wallman Architects

It’s been around a decade since plans were put in motion for Grand Park Village: a multi-block, mixed-use community proposed for 2 and 10 Audley Street and 29, 31, 39, 59, and 71 Portland Street. The series of addresses are a five-minute walk from Mimico GO, which has drawn plenty of development focus in recent years. (Think: Grand Central Mimico, which was at one point on track to be Ontario’s first transit-oriented community.)

The most recent iteration of the plans come from Minto Communities and call for 42-, 54-, 52-, 39-, and 34-storey towers that would sit in a triangular cluster around an interior courtyard, the GO Transit Rail Corridor running past the south side of the site. True to its name, the community is set to be a contemporary urban village that’s not only a hub for residents, but draws in the public with new retail, daycare, roads, and parkland dedication occupying around 10% of the site.

Keep Reading Show less

Cromwell After More Toronto Rental With 45-Storey Leaside Station Proposal

Cromwell After More Toronto Rental With 45-Storey Leaside Station Proposal

Renderings of Cromwell's proposals for 525 Eglinton Avenue East, 6200 Bathurst Street, and 55 Isabella Street/Wallman Architects

Montreal-based Cromwell Management appears to be on a development proposal streak after filing its third major application with the City of Toronto since the spring. The latest plans are for a 45-storey mixed-use building at 525 Eglinton Avenue East, where it would be a five-minute walk from the recently-opened Leaside Station of the Eglinton Crosstown LRT.

Because of the 10-storey rental building already on the site, Cromwell’s plans call for 53 replacement rentals, in addition to 473 net new rentals, for a total of 526 units. That also breaks down into 45 bachelor units, 342 one-bedrooms, 113 two-bedrooms, and 26 three-bedrooms, with all units slated for floors two through 45.

Keep Reading Show less

Axia Real Assets Bids $1.23B For Plaza Retail REIT

Axia Real Assets Bids $1.23B For Plaza Retail REIT

Last week, Toronto-based real estate fund Axia Real Assets LP revealed that it has submitted a non-binding offer to take over New Brunswick-based Plaza Retail REIT (TSX: PLZ.UN) in a deal that would value the REIT at $1.23 billion, including $670 million of debt.

Axia Real Assets is offering a purchase price of $5.28 per unit, which it said represents a 20.8% premium to the 90-day volume-weighted average price of the units and a 19.5% premium on the closing trading price, both as of June 8, 2026 — the day Axia submitted its offer.

Keep Reading Show less

Grosvenor Ups Vancouver Mayfair West Master Plan To 2,600 Units

Grosvenor Ups Vancouver Mayfair West Master Plan To 2,600 Units

A rendering of Mayfair West in Vancouver. (Grosvenor, Arcadis, Hariri Pontarini Architects)

Years after unveiling redevelopment plans, and nearly 10 years after the site was first sold, UK-based developer Grosvenor has significantly revised the plan for Mayfair West, the master-planned community set for what was formerly known as the Oakridge Transit Centre in Vancouver.

Mayfair West is set for a 14-acre site that includes the former Oakridge Transit Centre at 929 W 41st Avenue, plus the three adjacent parcels at 5469, 5489, and 5507 Willow Street. BC Assessment values the properties at $199,935,000, $3,251,300, $3,005,000, and $3,674,000 for a total assessed value of $209,865,300. The properties are now held under OTC Project BT Limited.

Keep Reading Show less

Half-Acre Bluffs Listing Boasts Frank Lloyd Wright Connection (And Water Views)

Half-Acre Bluffs Listing Boasts Frank Lloyd Wright Connection (And Water Views)

realtor.ca

Not every Toronto listing can claim a Frank Lloyd Wright connection. 2 Ledge Road can.

Designed by an architect who studied under Wright, this mid-century modern home sits on a full half-acre ravine lot in Cliffcrest, with southeast-facing unobstructed water views and the kind of seclusion that's increasingly hard to find inside city limits.

Keep Reading Show less
Privacy Policy About Us Terms of Use Advertise with Us Jobs Contact Us RSS Feed
All rights reserved SiteMedia © 2026.