Buying your first home is exciting—but figuring out how to pull money from your RRSP for a down payment can feel confusing. The Home Buyers’ Plan (HBP) lets you use your retirement savings without tax penalties, but the withdrawal rules are specific.



Here’s a simple breakdown so you know exactly what to do and don’t miss a step.

What Is the Home Buyers’ Plan (HBP)?

The HBP is a federal program that allows eligible Canadians to use up to $60,000 from their RRSP for the purchase or construction of a qualifying home.

• Each individual can withdraw up to $60,000.
• Couples can each participate, meaning up to $120,000 may be available for a down payment.

How the Withdrawal Works

• Step 1: Check Your Eligibility
• You must be a first-time homebuyer (or qualify under the rules for a specified disabled person).
• You must have a written agreement to buy or build a qualifying home.
• You must be a resident of Canada when you withdraw the funds.
• Step 2: Fill Out the Form
• Use Form T1036 – Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP.
• Download it here: Form T1036 (CRA).
• If you’re withdrawing from multiple RRSP accounts, a separate form is needed for each one.
• Step 3: Submit the Form to Your Financial Institution
• Your RRSP provider will complete their part of the form and process the withdrawal.
• Step 4: Receive the Funds
• It can take up to 5 business days (sometimes longer) for the money to reach your account.
• Plan ahead — I always recommend starting the process early so the funds are available well before you need them.

Benefits

• Tax-free withdrawal (if you follow the repayment rules).
• Larger down payment without needing taxable withdrawals or additional loans.
• Flexible repayment over up to 15 years, interest-free.

Important Considerations

• Repayments are mandatory — each year (starting the second year after your withdrawal) you must repay at least 1/15 of the amount withdrawn. If you don’t, that portion will be added to your taxable income.
• 89-day rule — RRSP contributions must be on deposit for at least 89 days before you can withdraw them under the HBP.
• Plan your timing — since institutions may take several days to release funds, don’t wait until the last minute.

Next Steps

If you’re planning to use your RRSP for your first home:

1. Confirm your eligibility.
2. Download and complete Form T1036.
3. Request your withdrawal early to avoid delays.

Need help with your mortgage? Book a consultation or call 778-988-8409.

Glossary

• Home Buyers’ Plan (HBP): A federal program that lets first-time buyers withdraw up to $60,000 from their RRSP tax-free for a home purchase.
• RRSP (Registered Retirement Savings Plan): A government-registered account that allows Canadians to save for retirement with tax advantages.
• Form T1036: The official CRA form required to withdraw RRSP funds under the HBP.