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Using Your RRSPs to Purchase a Home

When looking at purchasing or building a home, the biggest worry for buyer's is where to find the money for a down payment. A 20% down payment of the purchase price of the home is typically required. If 20% is not feasible, a 5% option is available. At 5%, you are required to have mortgage insurance through CMHC in order to qualify.

Regardless of the down payment percentage, the Government of Canada allows home buyers to use their RRSPs to purchase a home. There is no penalty for making this withdrawal. This government program is called Home Buyer’s Plan (HBP).

Before you make a withdrawal, the following conditions must be met:

1) You must be a resident of Canada.
2) The maximum amount for withdrawal is…

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