Asked
A few years ago I bought a house with the Home Buyers Program (HBP) with a withdrawal from my RRSP. I planned to move there for work and live in the home and then the job offer fell through. It turned out I was able to rent the property and continue to own it while living at home. I wrote the CRA and explained the situation and they said I could continue to keep the HBP in operation without penalty.
Fast forward now to 2025. I am prepared to pay back the last of the HBP "RRSP Loan" back to myself as my spouse and I want to purchase a home. It would be our first property to buy as a principle residence but I'm concerned about the ability to use the funds in my RRSP to fund the HBP again. I need to access those funds to afford the down payment.
Question: will CRA allow me to use the HBP again, correctly this time? Is it a one and done, or are there scenarios it can be used more than once? (Such as mine). I also am assuming if yes, I couldn't have two HBP at once, thus the need/want to settle that account.
Another caveat: if I am indeed able to access the HBP funds again, should I max out my rrsp and FHSA contributions before purchasing the property, or should I transfer funds in my RRSP to my FHSA (allowed by CRA) and apply the balance I would have invested in those accounts to the down payment directly? This caveat/question two is not as important to me but it is on my mind!
Thanks friends!
Clint’s answer
According to the CRA site, the rental is of no consequence to the HBP, so having a rental should not impact the application as long as the owner or partner has not lived in any home they owned in the previous 4 year period.
However... the HBP balance must be 0 on Jan 1 in the year they intend to apply it again.
You are on the right track, and if you have the room and the funds I don't see a reason not to max the FHSA and RRSP, but just be aware of the 89 day rule where you may not get the deduction if you apply within 89 days of making the deposits.
February 21, 2025
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms