Canada Home Buyers Plan
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Canada Home Buyers' Plan
The Home Buyers' Plan is a Canadian-based program that allows you to withdraw a set amount of funds from your registered retirement savings plan in order to buy or build a home. Currently, you may withdraw up to $20,000 a year (either in one lump sum or in several withdrawals throughout the year) and the home must meet certain specifications in order to qualify. You may purchase the home for yourself or for a disabled relative. However, if you intend to purchase a home for a relative, you must make sure the home is better suited to their needs and more accessible than their current home. If you'd like, rather than purchase the home for your disabled relative, you may give your withdrawn funds to them for purchase of a home.
It's important to note that taxes will not be withheld on your withdrawals by your RRSP issuer. Also, if you purchase the home with your spouse or other individuals, you may each withdraw up to $20,000. Be aware that you cannot withdraw any funds until they have been in the RRSP for at least 90 days.
Usually, paying back the total sum you've withdrawn is required within 15 years. At that time, your Home Buyers' Plan balance should be zero. There are special circumstances where repayment is required in a less amount of time. Be sure you know, before you withdraw any money, when you'll need to have it repaid, the amount of the payments, and the frequency of the payments.
There are conditions that must be met, not only when you withdraw funds but also after you've received the funds. To find out the most current qualifying conditions, contact your HBP.
If you've withdrawn funds from your Home Buyers' Plan in the past, you may be able to withdraw again. However you must meet certain conditions, including that the balance on your account must be zero on January 1st of the year you wish to withdraw.
In order to withdraw funds from your RRSP per the Home Buyers' Plan, you must be a resident of Canada. To find out about residency status, you may call 1-800-959-8291.