Can I borrow to buy a home from my RSP?

Yes, you can borrow from your RRSP (Registered Retirement Savings Plan) to buy a home through the Home Buyers’ Plan (HBP) — if you meet certain conditions set by the Canada Revenue Agency (CRA).

Here’s how it works:

✅ Eligibility

You can withdraw up to $35,000 tax-free from your RRSP if:

• You’re a first-time home buyer (or haven’t owned a home in the past 4 years).
  • If you are married, and your spouse owned a home, you will LIKELY not qualify.
  • Note that there are special rules if you were recently separated or divorced and your ex-owned the house.
• You’re buying or building a qualifying home in Canada.
• You intend to occupy the home as your principal residence within one year.

💸 Repayment Rules

• It’s a loan to yourself, not a gift: you must repay the full amount within 15 years.
• Repayments begin the second year after the year you withdraw.
• Each year, you must repay at least 1/15th of the amount you withdrew.
• If you miss a payment, that year’s amount is added to your taxable income.

🕐 Timing

• RRSP funds must have been in the account at least 90 days before the withdrawal to qualify.