Canadian (First-time) RRSP Home Buyer’s Plan
The First-time Home Buyer's Plan (HBP) is a Federal Government initiative providing
Canadian citizens the opportunity to withdraw up to $20,000 from personal registered
retirement savings plans (RRSPs) for buying or building a home in Canada. To qualify,
applicants must not have directly, or indirectly, owned a residence within the past five
years.
Under the HBP, qualifying withdrawals will not be included in annual income, and RRSP
issuers will not withhold income tax from these withdrawn amounts. If you are jointly
buying or building a home together with your spouse or other qualifying individual, each
of you can withdraw up to $20,000.
To withdraw these funds from your RRSPs, you must first have entered into a written
agreement to buy or to build. You will also need to confirm that you will occupy the
subject property as your personal residence. (Once you take occupancy there is no
minimum period of time you are required to live there.)
Your commitment to the HBP is to repay the amount withdrawn within a 15 year time
period. In each year, you will need to make the minimum contributions to your RRSPs
equal to 1/15 of the withdrawn funds until the total amount is repaid. You will receive a
HBP Statement of Accounts on your annual Notice of Assessment showing you the total
HBP withdrawal, the amount you have repaid to date, your HBP balance, and the
amount you should repay the following year. Your repayment starts the second year
following your withdrawal, and you may repay any amount in excess of the minimum to
reduce payments in later years.
The First-time Home Buyer's Plan (HBP) is a Federal Government initiative providing
Canadian citizens the opportunity to withdraw up to $20,000 from personal registered
retirement savings plans (RRSPs) for buying or building a home in Canada. To qualify,
applicants must not have directly, or indirectly, owned a residence within the past five
years.
Under the HBP, qualifying withdrawals will not be included in annual income, and RRSP
issuers will not withhold income tax from these withdrawn amounts. If you are jointly
buying or building a home together with your spouse or other qualifying individual, each
of you can withdraw up to $20,000.
To withdraw these funds from your RRSPs, you must first have entered into a written
agreement to buy or to build. You will also need to confirm that you will occupy the
subject property as your personal residence. (Once you take occupancy there is no
minimum period of time you are required to live there.)
Your commitment to the HBP is to repay the amount withdrawn within a 15 year time
period. In each year, you will need to make the minimum contributions to your RRSPs
equal to 1/15 of the withdrawn funds until the total amount is repaid. You will receive a
HBP Statement of Accounts on your annual Notice of Assessment showing you the total
HBP withdrawal, the amount you have repaid to date, your HBP balance, and the
amount you should repay the following year. Your repayment starts the second year
following your withdrawal, and you may repay any amount in excess of the minimum to
reduce payments in later years.
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CONNECT2MORTGAGES INC.