Regulation

RRSP Home Buyers' Plan

RRSP HBP

A federal program letting first-time buyers withdraw up to $60,000 from their RRSP toward a down payment without paying tax — provided the funds are repaid to the RRSP over 15 years.

The Home Buyers' Plan lets each first-time buyer pull up to $60,000 from their RRSP tax-free toward a down payment — $120,000 for a couple who both qualify. The withdrawal isn't taxed as income the way a normal RRSP withdrawal would be.

Contributions generally need to sit in the RRSP for at least 90 days before you withdraw them under the HBP, or they may not be deductible. You repay over 15 years; for a first withdrawal made from 2022 through 2028 repayment starts in the fifth year after the withdrawal (otherwise the second). Miss a year's repayment and that amount is added to your taxable income.

The HBP stacks with the FHSA, which is often the better account to fill first because FHSA withdrawals for a home are never repaid. Many buyers use both — FHSA first, then top up with the HBP — to maximize tax-free down-payment funds.

Sources

What is the Home Buyers' Plan (HBP) (Canada Revenue Agency)

Related on Mortgage Squad Advisors

First-time buyer

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B-20

OSFI Guideline B-20

OSFI's Residential Mortgage Underwriting Practices and Procedures guideline for federally regulated lenders (banks and federally regulated trust and loan companies). Its 2018 revision added the minimum qualifying rate (stress test) for uninsured mortgages, and it caps non-amortizing HELOC credit at 65% of the property value.

CMHC

Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation, the federal Crown corporation that provides mortgage default insurance (required when you put less than 20% down with a federally regulated lender) and runs national housing programs. The core eligibility rules for government-backed insured mortgages are set federally; CMHC publishes its own underwriting criteria on top.

FHSA

First Home Savings Account

The First Home Savings Account, a registered account available since April 2023 to first-time home buyers. Contributions are tax-deductible (like an RRSP) and a qualifying withdrawal to buy a first home is tax-free (like a TFSA). Participation room is $8,000 a year, with a $40,000 lifetime limit.

FSRA

Financial Services Regulatory Authority

Ontario's mortgage broker regulator. Replaced FSCO in 2019. All Ontario brokerages, agents, and brokers operate under FSRA licensing. Mortgage Squad Advisors is FSRA-licensed #13737.

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