Using Your RRSPs

Did you know that you can use your RRSPs to help purchase your first home or to finance your education?

Home Buyers’ Plan

This program allows Canadian Residents to use their RRSP’s to help pay for a first home without tax consequences.

Do I qualify?

  • Can be used by first-time home buyers.

How much can I borrow?

  • Maximum withdrawal limit is $25,000.
  • All withdrawals must be within the same calendar year.
  • Withdrawals can be made up to 30 days after the completion of a purchase.
  • Withdrawals are not permitted from a locked-in RRSP.

How do I repay the loan?

  • Must be repaid within 15 years.
  • Repayment period starts the second year following the year the withdrawals were made.
  • You must repay a minimum of 1/15 each year or you will be taxed on the withdrawal.
  • It can be repaid in full at any time.
  • Each year when you make an RRSP deposit you must indicate the Home Buyers Plan repayment amount on your income tax return.
  • Repayments to the Home Buyers Plan are not considered a contribution and you cannot claim repayments as a deduction.

Have more questions?

Lifelong Learning Plan

This program gives you an interest-free loan using the funds saved up in your RRSPs (or from your spouse’s RRSP’s) to finance eligible training or education for yourself or your spouse.

Do I qualify?

  • Must be enrolled as a full time student at a designated education institution in a qualified educational program.
  • Participation in this program must be done before the end of the year the student reaches the age of 71.

How much can I borrow?

  • Can withdraw up to $10,000 in a calendar year from your RRSP’s to finance full time training or education (for yourself or spouse/common law partner).
  • Maximum withdrawal limit is $20,000.
  • Withdrawals are not permitted from a locked-in RRSP.

How do I repay the loan?

  • Must be repaid within 10 years.
  • The latest year you can start repaying your Lifelong Learning Plan is the fifth year after your withdrawal. However, in most cases, you have to start repaying your withdrawals before that year.
  • You must repay a minimum of 1/10 each year of the total amount that was withdrawn or you will be taxed.
  • It can be repaid in full at any time.
  • Each year when you make an RRSP deposit you must indicate the Lifelong Learning Plan repayment amount on your income tax return.
  • Repayments to the Lifelong Learning Plan are not considered a contribution and you cannot claim repayments as a deduction.

Have more questions?

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