Federal Budget Increase
Earlier this month, the HBP got a new lease on life when the federal budget announced the amount that first-time home buyers can withdraw tax-free from their RRSP to buy a first home will be increased immediately to $35,000 from $25,000.
(The limit had not been adjusted for 10 years.)
First-time home buyers purchasing a home jointly with a spouse or partner can now each withdraw up to $35,000 from their own RRSP under the HBP, for a total down payment of $70,000. As the budget stated, the increased limit is meant “to provide first-time home buyers with greater access to their RRSPs to purchase or build a home” and applies to HBP withdrawals made after March 19, 2019.