Withdrawing from your RRSP's for your Down Payment
Funds may be withdrawn tax free from your RRSP up to a maximum of $20,000 per person for a down payment on your first home under the following conditions:
- Married couples are considered first time buyers if neither has owned a principal residence in the last five years
- Buyers may own or have owned investment property
- In certain cases only one spouse may qualify
- You can only use the plan once
- You must be a resident of Canada, but do not have to be a Canadian Citizen
- The home must be located in Canada and be your primary residence
- You must repay the RRSP withdrawal over a period of 15 years with minimum payment of 1/15 of the total amount withdrawn.
This information is being provided to assist in the planning of a home purchase. It is not intended to be legal advice and the information set out may not be applicable in all cases. Each client will be different and it is recommended that the buyer(s) consult with their lawyer or notary public as early as possible to confirm the actual cash requirements necessary to buy a home.