Home Buyers Plan

Home Buyers Plan, how to participate

Home buyers plan is for you, as a first-time home buyer or builder

You intend to occupy the qualifying home as your principal place of residence.

You can withdraw a single amount or make a series of withdrawals throughout the same year and January of the following year, as long as the total of your withdrawals is not more than $20,000.

If you buy the home with your spouse or common-law partner, each can withdraw up to $20,000 from his or her "RRSP" Registered Retirement Savings Plan making a total of $40,000
A qualifying home is a housing unit located in Canada.

This includes existing homes and those under constructed

Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify.

A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in a housing unit located in Canada, also qualifies.

When do you have to repay?

Your first repayment is due the second year following the year in which you made your withdrawals.

You have up to 15 years to repay the amount that you withdrew from your "RRSP" Registered Retirement Savings Plan

You have to repay a minimum of 1/15 of the total amount each year until the full amount is repaid to your RRSP

Every year, you will receive a Home Buyers' Plan (HBP) Statement of Account with your Notice of Assessment or Reassessment.

This statement will show the total amount of withdrawals, the amount you have repaid and to date and the balance

Home Buyers Plan is a great help for first time home buyer