If you're a first-time homebuyer in Canada, consider using a Registered Retirement Savings Plan (RRSP) for your mortgage down payment. Through the Canadian government's RRSP Home Buyers' Plan (HBP), first-time homebuyers can borrow up to $60,000 tax-free from their RRSPs. If you're buying with another first-time homebuyer, both of you can access $60,000 each, totaling $120,000. Remember, the HBP is a loan that must be repaid within 15 years.

Advantages of the iA Financial Group RRSP-HBP loan
— A simple and low-cost solution
— Competitive interest rates
— No credit checks*
— Turn unused RRSP contribution room into substantial tax savings
— Tax refund can be used to pay costs related to home-buying, such as moving or legal expenses
— Use as a standalone solution or to complement an HBP withdrawal from an existing RRSP

Updates to the RRSP Home Buyers' Plan
On April 11, 2024, the Federal government announced an increase in the RRSP Home Buyers' Plan withdrawal limit from $35,000 to $60,000, effective April 16, 2024. This marks the second time the limit has been raised since its introduction in 1992, following an increase from $25,000 in 2019.The new measure will also extend the period before home buyers must start making repayment installments to five years.