Real Estate

Withdrawing RRSP For Place

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Deal Addict
Dec 16, 2012
3747 posts
909 upvotes

Withdrawing RRSP For Place

Hi

I have some RRSP that I want to use as my downpayment, I have the forms ready to go but I am wondering how long does it take to process it? I gotten 2 different answers. One bank when I came to do it said I should wait till 2 weeks before completion to maximize the interest I earn but needs to be done before completion and the second told me I can withdraw 6 months before completion and 1 month after completion.

So what is it now?
5 replies
Deal Guru
User avatar
Oct 24, 2012
11641 posts
2620 upvotes
Montreal
fdl wrote: Not to sound like an ass, but is it too hard to go to the cra website to look this up?
You do sound like an ass because OP's question about processing time has nothing to do with the criteria imposed by the CRA.

RRSPs in a savings account can be withdrawn on the spot
RRSPs in a term deposit can be locked until the end of the term
RRSPs in mutual funds can take 24-48 hours because it involves multiple departments to complete
xiaobao wrote: One bank when I came to do it said I should wait till 2 weeks before completion to maximize the interest I earn but needs to be done before completion and the second told me I can withdraw 6 months before completion and 1 month after completion.
2 weeks before completion is only an "advice" to not do it too much in advance.

6 months in advance is just a set maximum time ahead of purchase, though I found no such restriction on CRA's website. It might be bank policy

1 month after completion is CRA restriction. You can't use HBP if you've owned the house for more than 1 month.


I suggest you request it 1 month in advance in order to have time to deal with issues that might arise because of the type of investment your RRSPs are located in.
Deal Fanatic
Dec 5, 2009
5768 posts
3612 upvotes
alkizmo wrote: You do sound like an ass because OP's question about processing time has nothing to do with the criteria imposed by the CRA.

RRSPs in a savings account can be withdrawn on the spot
RRSPs in a term deposit can be locked until the end of the term
RRSPs in mutual funds can take 24-48 hours because it involves multiple departments to complete



2 weeks before completion is only an "advice" to not do it too much in advance.

6 months in advance is just a set maximum time ahead of purchase, though I found no such restriction on CRA's website. It might be bank policy

1 month after completion is CRA restriction. You can't use HBP if you've owned the house for more than 1 month.


I suggest you request it 1 month in advance in order to have time to deal with issues that might arise because of the type of investment your RRSPs are located in.
Ops questions is about the timing of the withdrawal relative to completion of purchase which is all documented on the cra website. If not 100% answering his question its at least 90%.
Deal Addict
Dec 16, 2012
3747 posts
909 upvotes
alkizmo wrote: You do sound like an ass because OP's question about processing time has nothing to do with the criteria imposed by the CRA.

RRSPs in a savings account can be withdrawn on the spot
RRSPs in a term deposit can be locked until the end of the term
RRSPs in mutual funds can take 24-48 hours because it involves multiple departments to complete



2 weeks before completion is only an "advice" to not do it too much in advance.

6 months in advance is just a set maximum time ahead of purchase, though I found no such restriction on CRA's website. It might be bank policy

1 month after completion is CRA restriction. You can't use HBP if you've owned the house for more than 1 month.


I suggest you request it 1 month in advance in order to have time to deal with issues that might arise because of the type of investment your RRSPs are located in.
Thanks, My completion is March 18th, so I will go this week to do it. Probably so guess it will be like 10 business days. I don'r really get how you can do it one month after, I would have thought you need the money ready to go one completion as it is part of your down payment.
Deal Addict
Dec 28, 2002
3178 posts
423 upvotes
xiaobao wrote: Thanks, My completion is March 18th, so I will go this week to do it. Probably so guess it will be like 10 business days. I don'r really get how you can do it one month after, I would have thought you need the money ready to go one completion as it is part of your down payment.
not everyone needs the fund. if they have enough fund, they can withdraw it after it's closed.

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