Short answer
The Home Buyers’ Plan currently permits an eligible person to withdraw up to $60,000 from their own RRSPs for a qualifying home. It is not free money: repayments normally run over 15 years, and CRA’s temporary relief changes the first repayment year for qualifying withdrawal dates.
The concern behind the question
The buyer asks, “Can we use $120,000 from our RRSPs?” Two eligible buyers may each have their own limit, but each person must meet the conditions and have accessible RRSP money. The future repayment also belongs in the household budget.
What the current rule says
- The current maximum is $60,000 per eligible participant, withdrawn from RRSPs for which that person is the annuitant.
- The HBP permits repayment over 15 years.
- CRA states that temporary repayment relief was extended for a first withdrawal made from January 1, 2026 through December 31, 2028.
- For those withdrawals, the 15-year repayment period starts in the fifth year after the withdrawal year; CRA’s example says a 2026 withdrawal begins repayment in 2031.
- Some locked-in or group RRSPs may not permit an HBP withdrawal, and all participation conditions still apply.
A practical Ontario example
Illustration only: A couple each has $60,000 available in eligible RRSPs. That does not automatically mean withdrawing the full $120,000 is best. Rajiv would compare the down payment and payment benefit against lost investment time, the future HBP repayment obligation and the need for emergency cash after closing.
Where buyers get caught
- Withdrawing before checking the written-agreement and timing rules.
- Assuming every RRSP account permits an HBP withdrawal.
- Ignoring the future repayment in the household plan.
- Taking more than needed simply because the limit is available.
Where the lender decision is separate
This program does not approve the mortgage. An A lender still applies its own income, credit, debt-ratio, down-payment and property rules. When the down payment is below 20%, the lender normally submits the file to a mortgage insurer, and the insurer must also accept it. An alternative or B lender may take a broader view of income or credit, but usually requires more equity and may charge a higher rate and fees. MIC and private financing is normally a short-term, equity-based route with a clearly costed exit—not a first-time-buyer benefit.
Rajiv would compare the available route, total cash needed, monthly payment, conditions and exit plan. Government eligibility and lender approval answer different questions.
Do not let good money create a documentation problem
Keep the full trail for the deposit, down payment and closing money. If there is a large deposit, transfer or gift in the account during the lender’s review period, keep the statements and documents showing where it came from. Do not move the same money through several accounts unless there is a reason and a complete trail. A tax program may allow a withdrawal, but the lender and lawyer still need acceptable proof of funds.
Facts, assumptions and professional roles
The linked government source describes the public program. It does not state an individual lender’s underwriting policy. A lawyer should confirm the purchase contract, title and land-transfer-tax treatment. An accountant or qualified tax professional should confirm personal tax consequences. Rajiv’s role is to connect the verified mortgage file, closing cash and property to lenders whose current policies may fit.
Source checked 2026-09-07: Read the official government source.
What Rajiv would review before you rely on this
- Which definition of “first-time buyer” applies to the exact program?
- Is the home new, resale, substantially renovated or owner-built?
- Will it be your principal residence, and when will you occupy it?
- Is the benefit credited at closing, claimed later, or dependent on another form?
- Does your mortgage file still qualify without counting an expected refund?
Related AskRajiv pathways
Continue through the First-Time Buyer Rules Hub, the Mortgage Knowledge Centre, or the Real Estate Centre. If an offer is already accepted, use the closing-problem pathway before removing a condition or missing a deadline.
Get the first-home strategy checked
A rule can save money and still leave a financing gap if the timing, documents or property do not fit. Book a First-Home Mortgage Strategy Session with Rajiv Verma, Mortgage Broker. Bring the purchase timeline, income documents, available cash, registered-plan statements and any builder paperwork. Rajiv can identify what is confirmed, what is assumed and what must be checked before you commit.