An RESP EAP should not be used for a property down payment. CRA's reasonable-expense bulletin lists down payments on property as unreasonable for EAP purposes.
That does not mean housing is excluded. Housing while away at school can be reasonable, including on-campus residence, off-campus rent, and utilities. Basic furniture and housing needs can also be reasonable when connected to the student's school living arrangement.
The line is ownership. Paying rent for a student apartment while enrolled is different from using EAP money to help buy a condo, house, or investment property.
Subscriber contributions are a separate bucket and may be withdrawn by the subscriber, but families should still ask whether the withdrawal affects grants or plan rules before using RESP contributions for a non-education housing goal.
How to check this rule
- Decide whether the housing cost is rent, residence, utilities, furniture, or a property purchase.
- Treat rent and residence as potential education-related costs while the student is enrolled.
- Do not treat a property down payment as a reasonable EAP expense.
- Ask the promoter to separate EAP withdrawals from subscriber contribution withdrawals.
- Keep lease, residence, utility, or furniture receipts if using RESP money for student housing costs.
Details that matter
Rent can be reasonable
Student housing costs can fit the education purpose when the beneficiary is enrolled.
Down payments are different
CRA guidance lists down payments on property as unreasonable EAP expenses.
Ownership creates risk
Using education money to build family or student property equity is not the same as paying school-year housing costs.
Contributions need review
Contribution withdrawals may be flexible, but grant repayment and plan consequences should be checked first.
Example
Example: A student rents a room near campus for the school year. RESP EAP money may help with rent and utilities. Using EAP money for a condo down payment would be a very different request and is listed as unreasonable by CRA.
Questions to ask your provider
- Do you accept rent, residence, utilities, and basic furniture as EAP expenses?
- Would any part of this withdrawal be treated as a subscriber contribution withdrawal?
- Do you require a lease, residence invoice, or utility bill?
- Would a property down payment be rejected as an EAP expense?
- Could a contribution withdrawal create grant repayment?
Read next
Withdraw RESP money explains the broader decision and links to related tools.
Tool next step
RESP Withdrawal Checklist can help estimate the practical contribution choices before you confirm eligibility with the promoter.