RAP, RRSP: how to build your down payment smartly in 2026
When thinking about buying your first property, the down payment is often the obstacle that scares people the most. The good news is that two tax tools — the RRSP via the Home Buyers' Plan (HBP) and the TFSA-HTA (CELIAPP) — allow you to build a substantial down payment today, sheltered from tax. Here is how they work and how to combine them.
The HBP: up to $60,000 from your RRSP
The Home Buyers' Plan allows you to withdraw up to $60,000 from your RRSPs, tax-free, for the purchase or construction of a first home. This limit was raised from $35,000 to $60,000 a few years ago, which significantly increased the purchasing power of first-time buyers who have been contributing for a while.
The catch is that this amount must be repaid into your RRSP over a 15-year period; otherwise the non-repaid portion is added to your taxable income for the year. For withdrawals made between 2026 and 2028, the first repayment is required only starting in the fifth year after the withdrawal, giving a bit of relief in the early years after the purchase, often the tightest financially.
The CELIAPP: the best of both worlds
The Tax-Free Savings Account for the Purchase of a First Property combines the advantages of the RRSP and the TFSA: your contributions (up to $8,000 per year, for a cumulative maximum of $40,000) are tax-deductible, and your withdrawals for the purchase of a first property are completely tax-free, unlike the HBP which must be repaid. This, in my view, is the most advantageous tool to use first if you do not yet own a property.
The winning combination
The real potential appears when you combine both. A single buyer can thus mobilize up to $100,000 ($60,000 HBP + $40,000 CELIAPP) in down payment funds from their registered savings, without having to liquidate other investments. For a couple of first-time buyers, this amount can reach $200,000 together, a figure that completely changes the game in several Quebec markets, where the median price of a single-family home is around $425,000 to $560,000 depending on the region.
Where to start
If you plan to buy within the next 2 to 3 years, the best move is to open a CELIAPP now, even with small amounts: unused contribution room can be carried forward, up to $8,000 per year. If you already have substantial sums in an RRSP, it can be advantageous to let them grow for a RAP withdrawal at the time of purchase, rather than withdrawing them prematurely.
Each situation is different: your purchase horizon, your tax bracket, and your other saving priorities influence the best strategy for you. I can help you run the calculations and build a realistic down payment plan tailored to your project.
Feel free to contact me to discuss — I’m happy to review your situation with you, at no cost.