Using your RRSP before Retirement – Home Buyers’ Plan and Lifelong Learning Plan (Updated: 2026)

RRSPs are intended for retirement savings on a tax-deferred basis. Withdrawals before retirement are generally taxable and contribution room is lost. The federal government allows two exceptions: the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP).

1. Home Buyers’ Plan (HBP)
The HBP allows a first-time home buyer to withdraw up to $35,000 from an RRSP to use for a down payment (Budget 2019 increased the limit from $25,000 for withdrawals made after March 19, 2019). The amount is not taxed on withdrawal but must be repaid to the RRSP over 15 years. If your spouse or common-law partner is also a first-time home buyer, each can withdraw up to $35,000 (total up to $70,000). There are eligibility conditions—for example, the home must be intended as your principal residence. For current rules and eligibility, see the CRA – Home Buyers’ Plan.

2. Lifelong Learning Plan (LLP)
The LLP allows a Canadian resident under 71 with funds in an RRSP who is enrolled full-time at a designated post-secondary institution to withdraw up to $10,000 per year, to a lifetime maximum of $20,000. Amounts must be repaid over 10 years. Withdrawals can only be for the taxpayer or their spouse/common-law partner—not for children. For full rules and repayment, see the CRA – Lifelong Learning Plan.

Need help planning? Speak with us to analyze the short-term benefits and long-term consequences if you are considering withdrawing from your RRSP under the Home Buyers’ Plan or Lifelong Learning Plan. Give us a call.

This post has been prepared for general information purposes. It is not advice. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.