ASKROSS Answers: As a First Time Buyer, how do I go about using my RRSP as part of my down payment?
I am buying a house next month and I would like to use $20,000 from my RRSP towards the down payment.
I am a first time buyer, and I understand I can withdraw up to $25,000 for this purpose. How do I do this? When do I take the money out and do I have it deposited directly into my lawyer’s trust account or rather into my personal bank account first?
A first time buyer with questions about tapping into their RRSP when buying their first home comes up quite often. The process is refreshingly easy actually.
Once your offer to purchase has been accepted and all waivers are signed, you can request the funds be released from your RRSP – provided said funds have been in your RRSP for at least 3 months at that time.
It is perfectly fine to have the money deposited into your own bank account — so, not necessary to transfer to your lawyer’s trust account.
Please note, the $25,000 withdrawal limit is per applicant — so if there are two of you buying the home, you can actually tap into $50,000 if you both have RRSP’s.
There are more ways for First Time Buyers to access government incentives and cash back, download your free guide here.