Buyer Resources

The home Buyer's Plan

The Home Buyers' Plan (HBP) is a federal government program that allows you as a buyer to withdraw from your registered retirement savings plans (RRSPs) for the purpose of buying or building a qualifying home for yourself or for a relative with a disability. 

As a buyer, you are able to withdraw up to $35,000 (couples may be able to withdraw $35,000 each, for a total of $70,000). Access to your RRSP for this purpose is tax free as long as the amount withdrawn is paid back on time. 

- Resident of Canada
- Have RRSP with sufficient funds to withdraw
- First time home buyer
- Use of the home is for a primary residence

- Funds must have been in RRSP for 90 days
- Funds from RRSP must be withdrawn no later than 30 days after obtaining title of your new home
- Withdrawals must be made in one calendar year

The amount of withdrawn RRSPs must be repaid within 15 years. In addition, the minimum annual repayment amounts to the length of time you have to pay back (15 years) divided by the amount that you withdrew. For example, if you withdrew the maximum amount of $35,000 from your RRSPs, your annual repayments would amount to $2,333 ($35,000 divided by 15). Your first payment is due two years after the withdrawal is made. 

Repayments are made by depositing the amount required into your RRSP before the annual deadline for RRSP contributions. The CRA will send an account statement to you in their Notice of Assessment. This statement highlights what has been paid and the amount owing.

You may pay back more than you owe and it does not count towards your yearly RRSP contribution limits. Should you be unable to pay back the required amount in any of the years following the withdrawal, the difference will become RRSP income for that year. That amount will be taxed by the CRA.

- Acts as an interest-free loan if you repay the funds as required
- Increases your budget by $35,000 for one buyer and $70,000 for a couple.

- You must make yearly payments in addition to mortgage payments

For more information on this program, please visit the Government of Canada website here.

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