Definition
A Registered Retirement Savings Plan (RRSP) is a savings account registered with the federal government that allows deduction of contributions from taxable income and tax-sheltered growth of investments until withdrawal (typically at retirement).
In the real estate purchase context, the RRSP is relevant via the **Home Buyers' Plan (HBP)**: since 2024, a first-time buyer can withdraw up to **$60,000** from their RRSP (and their co-buyer $60,000 as well, totaling $120,000 for two) to form a down payment, without immediate tax. This amount must be repaid to the RRSP over 15 years.
Important: funds withdrawn via the HBP must have been in the RRSP for at least 90 days before withdrawal (anti-avoidance rule). The RRSP is also used as a mortgage investment in some advanced structures (RRSP mortgage), but this arrangement is complex and rarely profitable.