Can I Use My RRSP to Buy a House a Second Time?

Yes. You can use your RRSP to buy a house a second time through the Home Buyers’ Plan (HBP) if you qualify again.

Your previous HBP balance must be zero at the beginning of the year you make the new withdrawal. You must also meet the HBP's first-time home buyer rules.

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Can You Use the Home Buyers’ Plan Twice?

Yes.

The HBP is not limited to one use during your lifetime. You can participate again if your previous HBP balance is zero on January 1 of the year you make your new withdrawal. You must also meet the other eligibility requirements.

This means you need to finish repaying your previous HBP before using it again.

Do You Have to Be a First-Time Home Buyer Again?

Yes, in most cases.

You can qualify as a first-time home buyer again if you did not live in a home that you or your current spouse or common-law partner owned during:

• The current calendar year before your withdrawal

• The previous four calendar years

There are special rules for certain situations involving the breakdown of a marriage or common-law relationship.

How Long Do You Have to Wait Before Using Your RRSP Again?

It depends on when you last lived in a home you owned.

For example, suppose you sold your home in 2022 and rented afterward. You generally would not qualify again in 2025 because you still lived in an owner-occupied home within the previous four calendar years.

You could potentially qualify in 2027 if you meet the other HBP requirements.

What If You Still Owe Money From Your First HBP?

You generally cannot start another HBP participation while you still have a balance from your previous one.

Your HBP balance must be zero at the beginning of the year of your new withdrawal.

You can repay your remaining HBP balance early if you want to become eligible again sooner.

How Much Can You Withdraw From Your RRSP?

The current HBP withdrawal limit is $60,000.

This limit applies to each participation period. You can make more than one withdrawal during the permitted withdrawal period. Your combined withdrawals cannot exceed the limit.

What Other Requirements Do You Need to Meet?

You generally must:

• Have a written agreement to buy or build a qualifying home

• Be a Canadian resident during the required period

• Intend to make the home your principal residence within one year

• Qualify as a first-time home buyer again

• Have no outstanding HBP balance from your previous participation

The home must also be located in Canada.

Can You Use an RRSP for a Second Home?

Not simply because you want to purchase another property.

The HBP is generally intended for a home that will become your principal place of residence. You cannot normally use the program to withdraw RRSP money tax-free for an investment property or vacation home.

The key point is that owning a home in the past does not permanently prevent you from using the Home Buyers’ Plan again. You need to meet the first-time home buyer test again. Your previous HBP balance must also be fully repaid.