Short answer
No. The current HBP limit is $60,000 per eligible participant, but the money comes from the participant’s RRSP and generally must be repaid over a 15-year period.
The client’s real concern
A buyer sees the $60,000 headline and budgets it like a grant, without enough RRSP funds or a plan for the later annual repayments.
What the official rule says
CRA describes the HBP as a way to withdraw eligible RRSP funds to buy or build a qualifying home. The withdrawal limit increased from $35,000 to $60,000 for withdrawals after April 16, 2024.
What this does not guarantee
The HBP does not create RRSP savings, erase repayment obligations or guarantee first-time-buyer eligibility. An ineligible withdrawal may become taxable, and missed required repayments are generally included in income.
A practical Ontario example
Illustration only: A couple may potentially access up to $120,000 if both have enough eligible RRSP funds and independently meet the rules. Their future budget should still include each person’s HBP repayment.
What I would check before relying on the money
Confirm the available RRSP balance, eligibility, withdrawal timing and expected annual repayment. Compare this with retaining retirement savings and using a smaller down payment; the lowest mortgage is not automatically the strongest long-term plan.
- Which program are you using: FHSA, HBP, both, or another source?
- Who owns the account and independently meets that program’s definition?
- When were funds contributed, and when must they be withdrawn?
- Will the full bank, RRSP or FHSA trail satisfy the lender and lawyer?
- What cash remains for the deposit, adjustments, tax, legal costs and emergencies?
Rajiv’s broker perspective
Tax eligibility and mortgage approval are two separate tests. CRA determines whether the withdrawal or credit qualifies under tax law. The lender, mortgage insurer where applicable, and lawyer separately examine ownership, source of funds, borrowed down payment, timing and affordability. I would build one funds-to-close schedule first, then compare suitable A-lender, alternative/B, MIC or private options only if the complete mortgage facts require them. A tax benefit should support the plan—not hide a cash shortfall.
Related: First-Time Buyer Rule Hub · Mortgage Knowledge Centre · Updates & Rules Centre
Will your down payment be ready when the offer becomes firm?
Send Rajiv the purchase timeline, account types, contribution dates, expected withdrawals and available closing cash. He can prepare a practical funds-to-close review and identify questions that need your accountant or lawyer before you commit.