HBP at a glance
Perfect if you are looking to:
- Take out up to $35,000 per borrower for a down payment
- Draw on your RRSP without being taxed
- Take up to 15 years to pay back what you withdraw
Who is eligible?
- You must be considered a first-time home buyer
- You have to buy or build an eligible home in Canada
- The property must be occupied as your primary residence for the first year
- Your RRSP contributions must stay in the RRSP for at least 90 days
$35,000 per person
Amounts over $35,000 must be declared as income for the current year. Couples can withdraw a total of $70,000 for a down payment on a property.
15 year maximum
After the end of the first year, you must repay one fifteenth of the amount withdrawn on an annual basis for the next 15 years. You can also pay it back in full at any time. Note that your repayments are not counted as RRSP contributions and are therefore not tax deductible.
Talk to one of our mortgage specialists to learn about your financing options.
Little details that matter
Apply for financing to benefit from the HBP
- Take out an RRSP loan or line of credit.
- Put the money you borrowed in your RRSP (up to your contribution limit) and keep it there for 90 days. Interest charges may apply.
- Withdraw the amount you need from your RRSP. Note that you will need to pay back your loan in full when you make this withdrawal.
- Note that you have up to 15 years to pay back any funds you withdraw from your RRSP, starting after the first year.
TM All-In-One Banking is a trademark of National Bank of Canada.
1. Subject to credit approval by National Bank. Speak with your accountant, tax specialist or financial planner to see if this is the right strategy for you.
2. Subject to credit approval by National Bank of Canada. Certain conditions apply.