Home Buyers Plan (HBP)

Question 1

HBP

Answer 1

Allows participants to withdraw $35,000 ($70,000 per couple) from their RRSPs to purchase or build a house.

Question 2

How it works

Answer 2

• You may participate in the plan if you (or your spouse) have not owned a home which you occupied as your principal place of residence in any of the past four calendar years.
• Generally, you can only participate in the plan once
• Once you enter into an agreement to buy or build a qualifying home, you may withdraw funds from your RRSPs under the plan.
• You must acquire the home before October of the year following the year of withdrawal.

Question 3

Qualifying Home

Answer 3

You must enter into an agreement to purchase or construct a home which falls into the following categories:

1) It is located in Canada.

2) It was acquired not more than 30 days before receiving the withdrawal under the RRSP Home Buyers’ Plan.

3) It is intended to be occupied as your principal place of residence within one year after buying or building it

Question 4

HBP Payment Schedule

Answer 4

• RRSP must be repaid over a period of not more than 15 years to retain your tax deferred status.
• Paying less than your scheduled annual payments will result in the amount that you don’t repay being reported as income on your tax return for that year.
• Repayment period begins the second year following the year in which the withdrawal is made.