RRSP Home Buyers Plan

The Home Buyers’ Plan (HBP) is a program designed to facilitate the purchase or construction of a qualifying home by allowing individuals to withdraw funds from their Registered Retirement Savings Plans (RRSPs). This withdrawal, up to $35,000, is exempt from tax withholdings and provides a repayment period of 15 years.

Key Features of the Home Buyers’ Plan:

1. Multiple RRSP Withdrawals:

– If you own more than one RRSP account, you can withdraw funds from each of them.

2. Tax Withholding Exemption:

– RRSP issuers will not withhold tax on amounts withdrawn, provided they do not exceed $35,000.

3. Exceptions on Withdrawals:

– Certain RRSPs, like locked-in or group RRSPs, may restrict withdrawals under the HBP.

Eligibility Requirements for HBP Participation:

• • Participants must qualify as first-time homebuyers.
  •  Individuals need a written agreement to purchase or build a qualifying home for themselves or a related person with a disability.
  • Participants must be Canadian residents when withdrawing funds from RRSPs under the HBP until the qualifying home is purchased or constructed.
  • Within one year of purchasing or constructing the home, the participant must intend to occupy it as their principal residence. In cases where the home is for a disabled person, the same occupancy intent applies.
  • Individuals already enrolled in the HBP may reapply if their repayable HBP balance on January 1st of the withdrawal year is zero, and all other eligibility requirements are met.

The Home Buyers’ Plan provides a strategic opportunity for aspiring homeowners to leverage their RRSP savings, with the flexibility to make withdrawals from multiple accounts, exemptions on tax withholdings, and an extended repayment period.