RRSP Home Buyer's Plan in Ontario

RRSP Home Buyer’s Plan in Ontario

The Registered Retirement Savings Plan (RRSP) Home Buyer’s Plan (HBP) is a Canadian government program designed to assist first-time home buyers in Ontario and nationwide. Under certain conditions, individuals can withdraw funds from their RRSPs to finance the purchase or construction of a home. Here’s an overview of the HBP.

Understanding the RRSP Home Buyer’s Plan

  • Purpose: The primary aim of the HBP is to make it easier for individuals to buy or build their first home by using their pre-existing RRSP savings without immediate tax implications.
  • Withdrawal Limit: Participants can withdraw up to $35,000 from their RRSPs. For couples, this means a potential total of $70,000 can be used towards a home purchase.
  • Tax-Free Withdrawal: The funds withdrawn under the HBP are not taxed at the time of withdrawal, provided they are repaid within the stipulated time frame.

Eligibility Criteria

  • Residency: Applicants must be residents of Canada at the time of the RRSP withdrawal.
  • First-Time Home Buyer Status: The HBP is generally available to first-time home buyers. However, individuals who have not owned a home within the previous four years may also be eligible.
  • Agreement to Buy or Build: A written agreement to buy or build a qualifying home is necessary at the time of withdrawal.
  • Repayment Period: The RRSP funds withdrawn under the HBP must be repaid over a period of 15 years, starting two years after the initial withdrawal.

Process and Requirements

  • Application: Participants need to complete Form T1036 for each withdrawal they make under the HBP.
  • Repayment Tracking: The Canada Revenue Agency (CRA) tracks repayments annually through the individual’s tax return.
  • Home Acquisition Deadline: The home must be acquired or built before October 1st of the year following the year of withdrawal.

Additional Considerations

  • Impact on RRSP Contribution Room: Withdrawals under the HBP do not affect an individual’s RRSP contribution room.
  • Use of Funds: The funds withdrawn can be used for various expenses related to buying or building a home, including down payment, closing costs, and construction expenses.
  • Flexibility in Choosing a Home: The HBP applies to various types of homes, including single-family houses, townhouses, condos, and mobile homes, as long as they are located in Canada.

Key Takeaways

  • The RRSP Home Buyer’s Plan offers a tax-efficient way for Ontarians to finance their first home.
  • Understanding the eligibility criteria, repayment obligations, and process requirements is crucial for prospective participants.
  • Financial advisors or tax professionals should be consulted prior to utilizing the program.


The RRSP Home Buyer’s Plan is a valuable tool for first-time home buyers in Ontario. It offers a practical solution to access funds for a home purchase. By leveraging their RRSP savings, individuals can make a significant step towards homeownership, an important milestone in their financial journey.

For more detailed information and updates on the RRSP Home Buyer’s Plan, visiting the Canada Revenue Agency’s website and other related government portals is advisable​​​​:



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The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.

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