What Is the RRSP Contribution Limit in 2024?
The 2024 RRSP contribution limit is $31,560 — or 18% of your previous year’s earned income, whichever is lower. This is the maximum new contribution you can make in the 2024 tax year.
Unused contribution room from previous years carries forward indefinitely, so many Canadians have accumulated room that far exceeds the annual limit.
RRSP Contribution Limits by Year
| Tax Year | RRSP Contribution Limit |
|---|---|
| 2024 | $31,560 |
| 2023 | $30,780 |
| 2022 | $29,210 |
| 2021 | $27,830 |
| 2020 | $27,230 |
To find your exact RRSP room, log in to your CRA My Account or check the Notice of Assessment from your most recent tax return.
How Does the RRSP Contribution Limit Work?
Your annual RRSP contribution limit is calculated as:
RRSP Limit = 18% × Previous Year’s Earned Income (up to the annual maximum)
For example, if you earned $80,000 in 2023, your new 2024 contribution room would be 18% × $80,000 = $14,400.
Any unused room from prior years is automatically added, so your total available room could be significantly higher.
RRSP and the Home Buyers’ Plan (HBP)
One of the most powerful uses of your RRSP as a first-time home buyer is the Home Buyers’ Plan (HBP). Under this CRA program, eligible first-time buyers can withdraw up to $35,000 from their RRSP tax-free to use toward a home down payment.
Key HBP rules:
- The funds must have been in the RRSP for at least 90 days before withdrawal
- You must be a first-time home buyer (or not have owned a principal residence in the past 4 calendar years)
- You must enter into a written agreement to buy or build a qualifying home
- The RRSP withdrawal must be repaid over 15 years (minimum 1/15 of the amount per year)
- If you miss a repayment, the amount is added to your taxable income for that year
Couples buying together can each withdraw $35,000 under the HBP — a combined $70,000 tax-free RRSP withdrawal for a down payment.
RRSP vs. FHSA for a Down Payment
In 2023, Canada introduced the First Home Savings Account (FHSA) — a new registered account that combines the benefits of an RRSP and TFSA:
- Contributions are tax-deductible (like an RRSP)
- Withdrawals for a qualifying home purchase are tax-free (like a TFSA)
- No repayment required (unlike the RRSP HBP)
- Annual contribution limit: $8,000 | Lifetime limit: $40,000
For first-time buyers, using both the FHSA and the RRSP HBP together can provide up to $110,000 combined toward a down payment.
Tax Benefits of RRSP Contributions
Every dollar contributed to your RRSP reduces your taxable income for the year. For example:
- If you’re in the 40% marginal tax bracket and contribute $10,000, you save $4,000 in income taxes
- Investment growth inside your RRSP is tax-sheltered until withdrawal
- RRSP funds convert to a RRIF (Registered Retirement Income Fund) by age 71
How RRSP Savings Help With Your Mortgage
Beyond the Home Buyers’ Plan, building your RRSP also signals financial discipline to mortgage lenders. Having substantial savings improves your overall financial profile during the mortgage approval process.
Saif Abdulah, Licensed Mortgage Agent Level 2 with 8Twelve Mortgage, will help you structure your finances to maximize your down payment — whether through your RRSP, FHSA, or other savings vehicles.
Frequently Asked Questions: RRSP Contributions
When is the RRSP contribution deadline for 2024?
The RRSP contribution deadline for the 2024 tax year is March 3, 2025 (60 days after year-end).
What happens if I over-contribute to my RRSP?
CRA allows a lifetime over-contribution buffer of $2,000 without penalty. Amounts exceeding $2,000 above your limit are subject to a 1% per month penalty tax.
Can I contribute to my spouse’s RRSP?
Yes. Spousal RRSP contributions count against your own contribution room but can help equalize retirement income between spouses for tax purposes.
Can I use my RRSP for a down payment more than once?
You can use the HBP again once your previous balance has been fully repaid — and you meet the first-time buyer definition again (no principal residence owned in the prior 4 years).
Ready to Use Your RRSP Toward Your First Home?
Contact Saif Abdulah, Licensed Mortgage Agent Level 2, for expert guidance on using your RRSP and Home Buyers’ Plan to maximize your down payment. Saif serves first-time buyers across Toronto, Mississauga, Vaughan, Brampton, and all of Ontario.
