RRSP Home Buyer Plan

 

The Home Buyers Plan(HBP) lets a first time buyer withdraw up to $20,000 from RSP’s for a principle residence purchase.

 

Couples-including common-law will be able to withdraw up to $40,000. You are not considered a first time buyer if you or your spouse owned a home as your principle residence in the past 5 years.

A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made.

The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15th of the entire amount withdrawn. For example, if $20,000 is withdrawn, the minimum annual repayment is $1,333.

 

For additional info, please refer to the Canada Customs and Revenue Agency Publication.