RRSP Home Buyers' Plan in BC: How to Use Up to $60,000 Toward Your First Home

Saving for a down payment is one of the biggest hurdles for first-time home buyers in British Columbia. The good news? If you've been contributing to an RRSP, you may already have a powerful tool to help you get into the market sooner.

The federal Home Buyers' Plan (HBP) allows eligible buyers to withdraw up to $60,000 from their RRSP tax-free to put toward the purchase of a qualifying home. If you're buying with a spouse or common-law partner who also qualifies, you could potentially access up to $120,000 combined.

What is the Home Buyers' Plan?

The Home Buyers' Plan is a federal program designed to help eligible Canadians use their RRSP savings for a down payment without paying tax on the withdrawal, provided the money is repaid according to the program rules.

For many buyers in BC, especially in higher-priced markets, this can make a meaningful difference by increasing the down payment, reducing the mortgage amount, or helping avoid borrowing from other sources.

Who qualifies?

Generally, you may qualify if you:

• Are considered a first-time home buyer under the program rules (or qualify under the relationship breakdown provisions).

• Are a resident of Canada.

• Have a written agreement to buy or build a qualifying home.

• Intend to live in the home as your principal residence within the required timeframe.

Every situation is different, so it's worth confirming your eligibility before making any withdrawals.

How much can you withdraw?

Eligible buyers can withdraw:

• Up to $60,000 per person from their RRSP.

• Up to $120,000 for couples when both buyers qualify.

The funds must have been in your RRSP for at least 90 days before they're withdrawn.

Do you have to pay it back?

Yes—but you're paying yourself back.

The Home Buyers' Plan isn't free money. It's essentially an interest-free loan from your retirement savings.

You'll need to repay the amount back into your RRSP over 15 years. If you don't make the required repayment in a given year, the unpaid amount is added to your taxable income for that year.

Can you use the HBP with an FHSA?

Absolutely.

One of the biggest advantages for today's first-time buyers is that you can combine the First Home Savings Account (FHSA) with the RRSP Home Buyers' Plan if you qualify. This can significantly increase the funds available for your down payment while maximizing tax advantages.

Is using your RRSP always the right choice?

Not necessarily.

While the Home Buyers' Plan can be an excellent strategy, withdrawing from your RRSP also means those retirement investments are no longer growing until they're repaid.

Before making the decision, it's worth looking at:

• Your long-term retirement goals.

• Whether an FHSA or Tax-Free Savings Account (TFSA) may be a better source of funds.

• How much you'll realistically be able to repay each year.

• Whether increasing your down payment will meaningfully improve your mortgage options.

Every buyer's financial picture is different.

Thinking about buying in BC?

The Home Buyers' Plan is just one piece of the puzzle.

At Mortgage Designers, we help buyers understand how programs like the HBP, FHSA, gifted down payments, and insured mortgages work together to build the strongest financing strategy possible.

Whether you're buying your first condo, upgrading to a family home, or simply wondering if you're ready, we're happy to walk you through your options—without the jargon.