The RRSP Home Buyers' Plan, Explained Properly

The Home Buyers' Plan (HBP) lets a first-time buyer withdraw up to $60,000 from their RRSP, tax-free, to put toward a down payment — provided the funds have been in the RRSP for at least 90 days before withdrawal.

Unlike the FHSA, this isn't free money — it's a loan from yourself. You're required to repay it back into your RRSP over 15 years; missing a scheduled repayment means that year's amount gets added to your taxable income instead.

Both spouses/partners can each use their own HBP room on the same purchase if both are first-time buyers, meaningfully increasing the combined amount available — up to $120,000 between two people, on top of whatever FHSA and regular savings you're also contributing.

Withdrawing from an RRSP for a down payment does mean that money stops growing tax-sheltered for retirement during the years it's out — worth weighing against simply saving in an FHSA or TFSA instead, depending on your timeline and existing RRSP room.