1) Timing matters more than most people realise

Funds must sit in an RRSP for a minimum of 90 days before they are eligible for withdrawal under the Home Buyers’ Plan.

This becomes critical in competitive or seasonal markets. If you are planning a spring or early summer purchase,
contributions need to be made well in advance. Waiting until you find a property is often too late.

From a planning standpoint, your mortgage professional and real estate advisor should know early if the HBP is part of your strategy.
It affects documentation, lender expectations, and closing logistics.

2) The withdrawal limit is fixed per person

The current HBP limit allows withdrawals of up to $60,000 per individual.

That ceiling applies regardless of how much is in your RRSP. If you hold significantly more retirement savings,
it is usually not efficient to over-contribute funds intended for a near-term purchase. Short-term capital and long-term retirement assets
should be treated differently, even when they sit inside the same registered structure.

3) Couples may be able to combine withdrawals

Where both partners qualify as first-time buyers, each may withdraw up to $60,000, for a combined total of $120,000.

In Simcoe County, that difference can materially change the type of property a household can consider. It can shift options from entry-level condos
toward townhomes or modest detached homes, without stretching monthly affordability.

Qualification rules matter here, particularly the four-year lookback on prior home ownership. This should be confirmed early, not assumed.

4) RRSP contributions can create useful tax refunds

RRSP contributions reduce taxable income and may generate a refund. Many first-time buyers use that refund to cover closing costs,
land transfer tax, legal fees, or early improvements after possession.

For the 2025 tax year, the RRSP contribution deadline is March 2, 2026.
That timing often aligns closely with purchase planning and should be considered as part of the overall cash flow picture, not as an afterthought.

5) Contribution room must be confirmed, not estimated

RRSP contribution room should be verified directly through your CRA My Account.

This step matters for two reasons. First, excess contributions can create penalties. Second, lenders review registered savings activity
as part of mortgage qualification. Clear, accurate reporting avoids unnecessary friction during underwriting.

6) Short-term funds should not be exposed to market risk

Money intended for a near-term home purchase should not be subject to volatility.

Within an RRSP, HBP-eligible funds are typically best held in low-risk, cash-like vehicles such as high-interest savings or short-term
guaranteed investment certificates (GICs). Market swings can undermine purchasing power at exactly the wrong moment,
particularly when closing timelines are fixed.

7) Repayment is real and it starts sooner than expected

Amounts withdrawn under the Home Buyers’ Plan must be repaid over a maximum of 15 years, starting the second year after withdrawal.

Each year, a minimum repayment is required. For a $60,000 withdrawal, that is $4,000 annually.
If the repayment is missed or not designated properly on a tax return, the amount is added to taxable income.

This is not a penalty, but it does change future tax outcomes. Buyers should plan for repayment as deliberately as they plan for the purchase itself.

Final perspective

The Home Buyers’ Plan can be a useful tool, but it is not a solution on its own. In practice, it works best when coordinated with other structures,
such as the First Home Savings Account (FHSA), and aligned with realistic expectations about the local housing market.

In Barrie and Simcoe County, first-time buyers succeed most often when decisions are paced, informed, and integrated.
Programs support good planning. They do not replace it.