RRSP First Time Home Buyers Montreal
If you’re buying your first home in Montréal, the CRA Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP (per person) to use toward a qualifying home—then repay it over time.
The “HBP in 30 seconds” answer
- Max withdrawal: $60,000 per individual (withdrawals after April 16, 2024)
- First-time buyer test: you generally must not have lived in an owned home (yours or your spouse/partner’s) in the last 4 calendar years (with specific timing rules)
- Timing to buy/build: the home must be acquired or built before October 1 of the year after your first withdrawal
- Repayment: usually 15 years; Budget 2024 temporarily defers the repayment start so it begins the 5th year after the year of first withdrawal for first withdrawals Jan 1, 2022–Dec 31, 2025
- Paperwork: withdrawals use Form T1036; activity is tracked via your annual return (e.g., Schedule 7)
Disclaimer: This is general information, not tax/financial advice. Confirm your situation with CRA and a qualified professional.
Newcomers/immigrants
Top pain points
- No Canadian credit history (or it doesn’t “count” yet), which can limit mortgage options
- Document uncertainty (income proofs, residency/work authorization, bank letters)
- Unfamiliar process and timelines, increasing risk of costly mistakes (including HBP timing errors)
Young professionals + families upgrading from renting
Top pain points
- Down payment + closing costs stack up fast (inspection, legal/notary, welcome tax, etc.)
- Tight decision windows (offer conditions, financing deadlines, condo document review)
- Monthly payment anxiety: balancing mortgage approval, childcare, and lifestyle expenses
Who this page is for (Montréal buyer reality)
Step-by-step: Using your RRSP via the Home Buyers’ Plan (HBP) for a Montréal purchase
Step 1 — Confirm you qualify as “first-time” (CRA definition)
CRA’s HBP “first-time home buyer” test is based on whether you lived in a qualifying home you (or your spouse/partner) owned during specific time windows in the current year and the preceding 4 calendar years.
Step 2 — Have a real written agreement (pre-approval is not enough)
To withdraw under HBP, you must have a written agreement to buy or build a qualifying home; a pre-approved mortgage is not considered a written agreement.
Step 3 — Respect the key timing rule (buyers miss this)
To be an eligible HBP withdrawal, the home must be acquired or built before October 1 of the year after your first withdrawal (with specific CRA relief scenarios if timelines slip).
Step 4 — Withdraw properly (Form T1036) and within the permitted window
HBP withdrawals are made using Form T1036. You may make multiple withdrawals, but only in the same calendar year as your first withdrawal, and in January of the following year.
Step 5 — Understand the “89-day trap” before you contribute
If you contribute to an RRSP in the 89 days before your HBP withdrawal, part (or all) of that contribution may become non-deductible depending on RRSP fair market value after withdrawal. Practical takeaway: don’t “last-minute stuff” the RRSP without planning the deduction outcome.
Step 6 — Plan repayment (so it doesn’t become taxable income)
Repayments are made by contributing to RRSP/PRPP/SPP in the repayment year (or first 60 days of the next year) and designating the amount as HBP repayment. If you do not repay the required amount for a year, the unpaid portion is generally included in income (and you still file annually while participating).
Temporary relief note (important): Budget 2024 proposes repayment start deferral so the 15-year repayment period begins the 5th year after the year of first withdrawal for first withdrawals Jan 1, 2022–Dec 31, 2025.
Montréal closing-cost checklist (so your HBP cash doesn’t get “eaten”)
Even when the RRSP helps your down payment, Montréal buyers often underestimate these:
- Welcome tax (land transfer duty) — commonly due after purchase; check your municipality’s payment rules
- Inspection fees, legal/notary fees, appraisal, mortgage insurance (if applicable)
- Moving/utility setup and immediate repairs (budget conservatively)
Common HBP mistakes
Misunderstanding the “90/89-day” timing and deduction impact
Buyers often think “90 days” is a simple eligibility rule; CRA’s rule is specifically about deductibility limits for contributions within 89 days before withdrawal.
Assuming a mortgage pre-approval equals a written agreement
CRA is explicit: pre-approval is not a written agreement.
Missing the acquisition/build deadline tied to your first withdrawal
If you withdraw first and your transaction delays, you can accidentally fall outside the October 1 deadline.
Forgetting you can only withdraw in a tight time window
Multiple withdrawals are allowed, but only in the same year as the first withdrawal and January of the following year.
Spousal RRSP confusion (repayment designation and who can repay)
People routinely learn this the hard way and discuss it extensively; treat spousal scenarios as “double-check with CRA/your advisor” territory.
Not designating the repayment correctly on taxes
You can contribute to RRSP but still fail to designate it as HBP repayment, which can create unexpected tax results.
Keeping down payment funds invested in volatile products until the last minute
A common theme: market swings right before closing can force bad decisions.
How Lucas Xie helps Montréal first-time buyers using HBP
I do not provide tax advice. What I do provide is a tighter buying execution so your HBP plan doesn’t collide with Montréal transaction realities:
- Offer strategy aligned with your financing timelines
- Condition planning (inspection, financing, condo documents) to reduce last-minute renegotiation
- A closing-cost and cashflow checklist so you know what money must be liquid, and when
Want a Montréal-first HBP buying plan based on your timeline and property type (condo vs. plex vs. house)?
Use the contact form and include:
- Target purchase timeline (month/season)
- Estimated RRSP amount for HBP
- Newcomer status (if applicable) + any credit-history constraints
- Preferred neighbourhoods in Montréal
FAQ
How much can I withdraw from my RRSP for a first home in Montréal?
Under the CRA Home Buyers’ Plan, the withdrawal limit is $60,000 per individual for withdrawals made after April 16, 2024.
What counts as “first-time home buyer” for the HBP?
CRA generally considers you a first-time home buyer if you did not live in a home you (or your spouse/partner) owned in the defined period covering the current year (with a 30-day exception) and the preceding four calendar years.
Do I need an accepted offer before using HBP?
You must have a written agreement to buy or build at the time of withdrawal; a pre-approved mortgage is not a written agreement.
When do I need to buy the home after withdrawing?
For an eligible withdrawal, the qualifying home must be acquired or built before October 1 of the year after the year of your first withdrawal (with specific CRA relief situations if things change).
How long do I have to repay the HBP?
The HBP is repaid over 15 years, and Budget 2024 proposes a temporary deferral so the repayment period starts the 5th year after the year of first withdrawal for first withdrawals Jan 1, 2022–Dec 31, 2025.
What Montréal costs should I budget beyond the down payment?
Many buyers underestimate welcome tax (land transfer duty) and transaction costs like inspection and legal/notary fees.
Compliance and disclaimer
General information only. This content is provided for educational purposes and does not constitute financial, tax, or legal advice. Real estate investing involves risk, and outcomes vary. Consult qualified professionals (mortgage, accounting, legal, inspection) before making decisions. No guarantees of results are made or implied.