Can I use my RRSP to Buy a House a Second Time?

Sometimes, yes—but only if you qualify again.

In Canada, you normally use your RRSP for a home purchase through the Home Buyers’ Plan (HBP). You can use HBP more than once if:

1. You’ve fully repaid your previous HBP balance, and

2. You meet the CRA’s definition of a first-time home buyer again (usually meaning you haven’t owned and lived in a home as your principal residence for a specific multi-year period before the new withdrawal).

If you still have an outstanding HBP balance or you’ve recently owned a home you lived in, you likely won’t qualify to use your RRSP for a second purchase under HBP.

Because tax rules can change and your situation might be unique, it’s a good idea to double-check with CRA resources or a tax professional before making any moves.

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Key Rules for Using RRSPs a Second Time

Here’s the simple version of how a “second-time” HBP use usually works:

• You must have no outstanding HBP balance by the start of the year you plan to withdraw from your RRSP again.

• You must meet the CRA’s first-time home buyer definition as of the new withdrawal date (which mainly looks at whether you or your spouse/common-law partner owned and lived in a home as a principal residence during a specific lookback period).

• You still need to follow all the usual HBP rules: maximum withdrawal limits, timing around your home purchase, and repayment schedule.

If you don’t meet those conditions, you can still withdraw from your RRSP—but it will usually be treated as taxable income, not an HBP withdrawal, which is rarely ideal.

Should You Use Your RRSP Again?

Even if you can use your RRSP a second time, ask yourself:

• Will draining my RRSP again hurt my retirement plan too much?

• Could I reach my down payment goal with a mix of regular savings, TFSA, and RRSP, instead of just RRSP?

• Do I have enough emergency savings so I’m not house-poor after I buy?