Borrowing from your RRSP for your down payment
Home Buyers Plan requires that RRSP withdrawals for home purchase have to be paid back to your RRSP over a period of 15 years. As of this year, you can withdraw up to $35,000 from your RRSP to use towards your first home down payment.
If you borrow $20,000 for your down payment, then you must contribute a minimum of $1333.33 annually to your RRSP (or $111.11 monthly) to re-pay your RRSP loan. Make sure you factor this payment into your monthly budget.
Your financial institution will take approximately 5-7 business days to transfer the funds to your account so that the money from your RRSP is available for your down payment.
The withdrawal form must be completed and submitted to your financial institution along with your purchase contract a minimum of 14 days prior to meeting with your lawyer.
As always, please contact me if you have any questions.