Michael A. Jones – PREC* | Royal LePage Kelowna

Using your RRSP to buy a home in Kelowna

Buying your first home in Kelowna or the Central Okanagan can feel out of reach — especially with today’s prices. But if you’ve been contributing to a Registered Retirement Savings Plan (RRSP), there may be a way to unlock that money tax-free to help with your down payment.

This post breaks down the Home Buyers’ Plan (HBP) — a federal program that lets you withdraw up to $60,000 from your RRSP for the purchase of a qualifying home.

How the Home Buyers’ Plan Works

  • You can withdraw up to $60,000 from your RRSP (or $120,000 as a couple)
  • You won’t pay tax on the withdrawal — as long as you repay it over 15 years
  • The funds must be in your RRSP for at least 90 days before withdrawal
  • You must be a first-time home buyer, or not have owned a home in the last 4 years

There’s no penalty, and you can use the funds for your down payment, closing costs, or other purchase-related expenses.

Who Qualifies for the HBP?

You must:

  • Be a Canadian resident at the time of withdrawal and up to the time the home is acquired
  • Be a first-time home buyer (haven't owned a home in the past four years)
  • Have a written agreement to buy or build a qualifying home
  • Intend to occupy the home as your principal residence within one year after purchase

Kelowna buyers note: resale homes, townhomes, and condos all qualify under the HBP — and so do pre-construction homes, as long as occupancy is within a year.

How Do You Pay It Back?

You repay the amount you withdrew in equal installments over 15 years. Each year, CRA will send you a statement showing how much you owe. Miss a repayment? That portion gets added to your income for that year and is taxed.

Temporary Relief: For withdrawals made between January 1, 2022, and December 31, 2025, the repayment period starts the fifth year after the withdrawal, giving you extra time before repayments begin.

Should You Use the HBP?

The Home Buyers’ Plan can be a smart way to unlock your own savings without triggering tax. Just make sure to:

  • Have a repayment plan in place
  • Factor in your long-term retirement goals
  • Speak to a tax professional or mortgage advisor before proceeding

Also check out this post on how some Kelowna buyers are making their mortgage interest tax-deductible.

Next Steps

  • Log in to your CRA My Account to check your RRSP balance
  • Talk to your financial advisor or bank about HBP eligibility
  • Download the official HBP form (T1036) to begin your withdrawal

Looking to buy your first home in Kelowna, West Kelowna, Vernon, or Lake Country? Here’s what happens once you find the right home.

More Resources

This post is for informational purposes only. It is not financial or tax advice. Please consult a licensed financial or tax professional before making any decisions regarding your RRSP or the Home Buyers' Plan.