What changed in 2024
In 2024, the Canadian government overhauled the Registered Retirement Savings Plan (RRSP) Home Buyers' Plan (HBP) to help more people—especially first-time buyers—get into a home. The moves are a response to climbing prices and the uphill battle younger Canadians face trying to crack the market.
The big headline: you can now withdraw up to $60,000 from your RRSP, up from $35,000. That change took effect April 16, 2024. It's a meaningful jump—enough to make a real difference in how quickly you can gather a down payment. The money comes out tax-free, as long as you pay it back within fifteen years.
If you withdrew between 2022 and 2025, you don't have to start repaying for five years. That grace period gives you breathing room to settle into ownership—mortgage, property tax, all of it—before the repayment clock starts ticking.
Longer amortizations for new builds
Starting August 1, 2024, first-time buyers purchasing newly built homes can stretch their mortgage amortization to thirty years, instead of the usual twenty-five. Longer amortization means lower monthly payments, which can be the difference between qualifying and not.
The government is betting that easier monthly carrying costs will open the door for more people and, at the same time, encourage new construction—more supply to help cool the affordability crisis.
Why these changes matter
These updates are part of a broader federal push to tackle housing affordability in Canada. The goal is straightforward: give more young Canadians a shot at owning their first home and stimulate the building of new supply, which is desperately needed as prices and rents continue to climb.
The changes won't solve everything, but they do shift the math in your favour if you're trying to get into the market in 2024 or 2025.
What you need to know before you use the HBP
If you're thinking about tapping your RRSP under the Home Buyers' Plan, it's worth understanding exactly how it works—the eligibility rules, the repayment terms, and how it fits into your overall plan.
Getting the details right makes a real difference. You want to make sure you're maximizing the benefit and not creating problems down the road with repayment or tax consequences.
If you have questions about the RRSP Home Buyers' Plan or how these 2024 changes apply to your situation, reach out. We're here to walk you through it and help you figure out the best path forward.
