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How to increase your downpayment by 25-40% in only 90 days

Canada Mortgage Consultant

How to increase your down payment by 25-40% in only 90 days

When it comes to buying your first home, saving for the down payment can be the hardest part.

So here is a trick to add a few extra Loonies to your savings, very quickly.

Any money that you are using for your down payment should be deposited to your RRSP first.

Here’s why:

For every dollar you invest in your RRSP, the government will refund any income taxes you paid on it. This means that for the average Canadian you could be getting back up to between 25 – 40% of everything that you contribute.

As a first time home buyer, once that money has been in the RRSP for 90 days, you can withdraw it, and still, keep your refund. Yes, you can withdraw the money from the RRSP and keep the money that the government gave you.


RRSP Contribution

Est. Marginal Tax Rate

Estimated Refund




Just for some perspective, with an initial deposit of $15,000 you would be limited to purchasing a home worth $230,769.00 (accounting for closing costs), but with a down payment of $20,250.00, you would now qualify for a maximum home value of $311,538.46.

​That’s an $80,769.00 increase in the value of the home you can purchase.

The money doesn’t have to be used for the down payment, it can be used to help offset closing costs, purchase furniture appliances, yard equipment or even pay off debt. The government allows you to use the money for anything that you feel will help you during the home buying process.

This program is not for everyone but it does work in many different ways and when done properly there is almost no downside.

To learn whether or not this program would work for you please reach out to me directly and I can help you determine how you can use this program to assist you in buying your first home.

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