The HBP currently allows an eligible participant to withdraw up to $60,000 from RRSPs and generally repay it over no more than 15 years. The first-time-buyer test, 89-day contribution rule and purchase deadlines require attention.
Why this matters in a Canadian mortgage
Federal mortgage-insurance and first-home rules change over time and use program-specific definitions. Buyers should verify the current official requirements before making an offer or moving registered savings.
The practical issue is not simply whether a feature sounds attractive. It is whether the contract, household cash flow and likely timeline work together. For using the home buyers’ plan, compare the immediate benefit with the remaining balance at the end of the term, the ability to change course and the cost of a less favourable scenario.
How to evaluate the decision
Compare the tax and retirement effects with using an FHSA or non-registered savings. Keep the required forms and repayment schedule.
Use consistent assumptions. Keep the mortgage amount, amortization, payment frequency and closing date the same when comparing alternatives.
Request written details. Rates and verbal explanations are not enough; obtain the commitment, disclosure and applicable standard terms.
Model the next decision point. Estimate the balance and payment at renewal, sale or refinance rather than looking only at today.
Questions to ask the lender, broker or adviser
- Which rule or contract clause applies to this exact transaction?
- What amount is due at closing, and which charges may be added to the mortgage?
- What is the payment, total paid and projected balance at the end of the term?
- What happens if rates rise, income falls, the property is sold or the mortgage is switched?
- Which figures are estimates, and which will appear in the final legal documents?
Common mistakes
Do not make a large last-minute RRSP contribution without checking whether it will be deductible before the withdrawal.
Do not make a large last-minute RRSP contribution without checking whether it will be deductible before the withdrawal.
A mortgage approval is not a recommendation to borrow the maximum, and a calculator cannot assess every contract or household risk.
Property law, taxes, rebates, enforcement and professional licensing vary by province or territory.
A useful next step
Write down the key numbers and the reason for the choice in one page: mortgage amount, rate type, term, amortization, payment frequency, annual prepayment room, estimated term-end balance and likely exit date. That record makes later renewal and comparison work much easier. For calculations involving buyers, withdraw, eligible, qualifying, repayments, use the lender’s disclosure as the final authority.
Official requirements and lender policies can change. Last reviewed August 1, 2026.