It is important to know that while taking out your RRSPs is a great way to come up with a downpayment, that any funds that you take out have to be paid back within 15 years, or they will be taxed as a personal income. Unlike mortgages, they can be repaid as a lump-sum without penalty, over the given 15-year timeframe.

Can you use RRSP for closing costs?

You need to verify the funds have been in your RRSP account(s) for at least 90 days for the funds to qualify towards your home purchase. ... The funds can be used not only towards your down payment, but also for closing costs and furniture as well.

How do I use my RRSP for a downpayment?

To withdraw funds from your RRSPs under the HBP, fill out Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP. You have to fill out this form for each withdrawal you make. After filling out Area 1 of Form T1036, give it to your RRSP issuer. The issuer must fill out Area 2.