As a first-time homebuyer, you can withdraw up to $60,000 from your RRSP to put toward your down payment. This is part of the federal Home Buyers’ Plan (HBP), which will allow you to access your retirement savings early, without tax penalties, as long you repay your funds over time.

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What Lenders Need to See

When you’re approved for a mortgage, lenders will want to confirm that the money has already been withdrawn from your RRSP and is sitting in your bank account. If your possession date is coming up quickly, you need to move fast to avoid delays.

Watch the Timing of Your RRSP Withdrawal

RRSP down payment withdrawals typically take 5 to 10 business days to process. In a competitive market where possession dates can be just 30 days away, this timeline matters. You can’t speed it up by much, so your best move is to plan ahead and request the withdrawal as soon as your offer is accepted.

Avoid Stress with Good Preparation

If you’re thinking of making an offer, and you plan to use your RRSP for the down payment, get ahead. Don’t wait until the last minute to request your funds. If you have questions about how this works, please reach out. I’m happy to help.

Whether you are preparing to buy your first home or thinking about making a move, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.