RRSP Home Buyers’ Plan

The Home Buyers’ Plan (HBP) is a program under which you can, generally, withdraw up to $25,000 from your registered retirement savings plan (RRSP) to buy or build a qualifying home. Couples, including common-law, will be able to withdraw up to $50,000. However, you must meet the first-time home buyer’s condition.

Home buyers withdrawing funds do not have to pay income tax on the amount withdrawn, providing the funds are repaid into the RRSP within 15 years. NOTE money must be in your RRSP for a minimum of 90 days before a withdrawal can be authorized.

Furthermore, all eligible withdrawals do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw the funds, you must have a written agreement of purchase and sale/build for a qualifying home and occupy the home within one year.