July 2, 20263 min read
A strong mortgage plan starts by separating what is technically allowed from what is financially comfortable. The Home Buyers' Plan can let eligible buyers withdraw money from an RRSP for a qualifying home without the withdrawal being immediately included in taxable income.
How lenders approach it
Here is what matters most:
- The current HBP withdrawal limit is $60,000 per eligible participant.
- Eligibility rules apply to both the buyer and the home, so confirm them with CRA guidance before withdrawing.
- HBP withdrawals create a repayment obligation over future years; missed required repayments are generally added to taxable income.
- Money moved out of an RRSP also loses potential tax-deferred investment growth while it is outside the plan.
Compare the HBP with other down-payment sources rather than assuming the maximum withdrawal is automatically the best choice.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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