This plan allows first-time homebuyers (defined in the Income Tax Act as persons who have not owned a home for the prior five years) with RRSPs to borrow up to $20,000 from their RRSPs to purchase their own residence. You must make your withdrawal within 30 days of completing your purchase. You will not be able to deduct any portion of an RRSP contribution that is withdrawn under this Plan within 90 days after it is contributed.

You are requested to repay your RRSP, without interest, over 15 years commencing in the second year after the year of the withdrawal. You will be taxed on any scheduled repayments you do not make.

For spouses/common law partners planning to jointly purchase their first home, each spouse can borrow up to $20,000 (for a total of $40,000) from their own respective RRSPs.  Repayments must likewise be made to their own respective RRSPs.

If you or your spouse or common law partner are planning to buy your first home and you have RRSPs, look into the Home Buyers' Plan.

Information for RRSP Tips is provided as a public service by the Chartered Accountants of British Columbia.