Real Estate

RRSP withdrawals for HBP

  • Last Updated:
  • Oct 4th, 2020 8:21 pm
[OP]
Newbie
Aug 11, 2015
42 posts
32 upvotes
Toronto, ON

RRSP withdrawals for HBP

Hi -

My wife and I are both first time home buyers. As per the guidelines, I understand that both of us can withdraw upto $35,000 from RRSP to use as a downpayment for the house.

My wife, since she moved to Canada 3 years ago doesn't have the $35k limit in her RRSP but I have enough to make up for a combined $70k. One of my friends told me that I could withdraw more from my RRSP as long as the combined is $70k for us, but I am a bit skeptical about how it would work.

Our combined RRSP limit is over $70k but my wife's is about $15k. So, I am looking for the best way to take advantage of HBP to withdraw money for my downpayment. Any advice?

P.S: Sorry if the questions are silly and very basic but I couldn't find answers online.
4 replies
Newbie
User avatar
Aug 19, 2015
54 posts
17 upvotes
Toronto, ON
Account has to be in their name.

You can't withdraw, say, $55,000 from your accounts and $15,000 from hers to total $70,000.

Also remember that any contributions under 90 days can't be withdrawn. That always bites people in the ass.
[OP]
Newbie
Aug 11, 2015
42 posts
32 upvotes
Toronto, ON
NoamChimsky wrote: Account has to be in their name.

You can't withdraw, say, $55,000 from your accounts and $15,000 from hers to total $70,000.

Also remember that any contributions under 90 days can't be withdrawn. That always bites people in the ass.
Thanks for your reply. Can I open a Spousal RRSP under her name, I do the contributions and then use it to withdraw when we are putting the downpayment? Does that work?
Sr. Member
Feb 19, 2019
951 posts
1182 upvotes
Stouffville ON
KillmeSlowly wrote: Thanks for your reply. Can I open a Spousal RRSP under her name, I do the contributions and then use it to withdraw when we are putting the downpayment? Does that work?
Yes, if it makes sense you can open a spousal rrsp, you take the deduction but when the funds are drawn towards the HBP you can withdraw up to $35K from your rrsp, and she can withdraw up to $35K from the spousal rrsp you set up for her, this way you can have up to $70K towards the downpayment.
Full Time and Full Service Realtor
Newbie
User avatar
Aug 19, 2015
54 posts
17 upvotes
Toronto, ON
Right you can use a spousal RRSP provided that you have the contribution room but I believe your spouse will need to repay the HBP withdrawal.

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