The HBP: A Helping Hand in Becoming a Homeowner
By using the federal government’s Home Buyers’ Plan (HBP), you can turn your dream into a reality sooner rather than later by withdrawing a maximum of $25,000, tax free, from your Registered Retirement Savings Plan (RRSP).
To participate in the Home Buyers’ Plan, you must meet the program’s eligibility criteria and the RRSP withdrawal conditions. You must be considered a first-time home buyer, and you must have a written agreement to buy or build an eligible home. This home can be for you or for a person with a disability who is related to you.
As for the RRSP withdrawal conditions, you must be a resident of Canada at the time you withdraw the money, and you must receive all withdrawals in the same calendar year. You cannot withdraw more than $25,000. You can withdraw the funds from more than one RRSP as long as you are the owner of each RRSP.
How to repay your RRSP
The repayment of your RRSP starts the second year after the year you withdrew the money for the HBP. You generally have up to 15 years to repay the amount you withdrew under the HBP, but you can repay the full amount at any time.
To learn more about the HBP, visit the website http://www.cra-arc.gc.ca/hbp, and stop dreaming: you can become a homeowner sooner than you think!
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