RRSP Home Buyers Plan
The Home Buyers Plan (HBP) is a program under which you can withdraw upto $25,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. If you are purchasing with your spouse you can both withdraw $25,000 each from your own RRSP accounts. Your RRSP contribution must remain in the RRSP at least 90 days before you can withdraw them under the RRSP Home Buyers Plan.
One of the main benefits of the RRSP Home Buyers Plan is that you do not have to include the withdrawals as income nor will the RRSP issuer withhold any tax on this amount (provided you meet all HBP conditions).
In terms of repayment, you have upto 15 years to pay back your RRSP with a minimum yearly payment of 1/15th of the amount. If for any given year you donot repay then that minimum repayment is included as taxable income for that year.
Before you can withdraw any money from your RRSP Home Buyers Plan you must have had entered into a written agreement to buy or build a qualified home for yourself or for a person with disability that is related to you. You must occupy this home no later than 1 year after buying it or building it. You must also be considered a First Time Home Buyer and be a resident of Canada. For more information, please click here.