Canadian banking guide
Can You Use an RRSP for a Down Payment in Canada? (2026 Guide)
Author
CanadianBankNews Editorial Team
Updated
July 7, 2026
Reading time
3 min read
Guide overview
This CanadianBankNews guide turns common banking and mortgage questions into a practical answer, links to relevant tools, and points readers to official sources where possible.
In this guide
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Short answer
Eligible first-time home buyers can use the RRSP Home Buyers Plan to withdraw up to $60,000 from an RRSP for a qualifying home, subject to program rules and repayment requirements. It can help with a down payment, but it should be compared with FHSA and TFSA savings.
Key takeaways
- TFSA, RRSP, and FHSA accounts can all help Canadians save, but each works differently for taxes, withdrawals, and home-buying flexibility.
- First-time buyers often compare FHSA room, RRSP Home Buyers' Plan access, and TFSA flexibility before choosing where to save.
- The best choice depends on income, timeline, tax situation, and whether the money is definitely for a home purchase.
Quick answer
The RRSP Home Buyers Plan lets eligible first-time home buyers withdraw up to $60,000 from an RRSP for a qualifying home, subject to program rules. It can help with a down payment, but the withdrawal generally has repayment requirements.
How the Home Buyers Plan works
The buyer requests an eligible RRSP withdrawal under the Home Buyers Plan, uses the funds toward a qualifying home, and then follows the repayment schedule. If required repayments are missed, the unpaid amount may be included in taxable income.
Pros and cons
Pros: can unlock existing RRSP savings, may help a buyer reach the down payment faster, and can be combined with FHSA if conditions are met. Cons: it uses retirement savings, repayment rules apply, and it may not be better than using FHSA or TFSA depending on the buyer situation.
When using an RRSP may make sense
It may make sense when the buyer is eligible, already has RRSP savings, understands the repayment schedule, and needs additional down payment funds after comparing FHSA and TFSA options.
When to be cautious
Be cautious if using the RRSP would weaken retirement savings, create repayment stress, or distract from closing costs and emergency savings. The best down payment is not only about qualifying; it is also about staying financially resilient after closing.
What to try next
Compare three scenarios: no RRSP withdrawal, partial RRSP withdrawal, and a larger down payment using FHSA/TFSA/RRSP together. Then check how each scenario changes monthly payment, loan-to-value, and cash left after closing.
Frequently asked questions
How much can be withdrawn under the Home Buyers Plan?
Eligible buyers may be able to withdraw up to $60,000 from an RRSP under the Home Buyers Plan, subject to CRA rules.
Does RRSP Home Buyers Plan need to be repaid?
Yes, repayments generally apply. Missed repayment amounts may be included in taxable income.
Should RRSP be used before FHSA?
Not automatically. Eligible buyers often compare FHSA, TFSA, and RRSP/HBP together before deciding.
Sources
These official references are included so readers can verify important rules directly.
Disclaimer
CanadianBankNews provides educational information and AI-assisted guidance. It is not a lender, mortgage broker, or financial advisor. Confirm important decisions with a licensed professional.