Taking Advantage of the RRSP Home Buyers’ Plan Program

05.17.2024 | Post on Buyer Programs

Understanding The RRSP Home Buyers’ Plan Program (HBP)

Did you know you can access funds from your RRSPs to take advantage of the Canada Revenue Agency’s (CRA) Home Buyer’s Plan (HBP)?

Taking Advantage of the RRSP Home Buyers’ Plan

First-time homebuyers can withdraw up to $60,000, tax-free, from their RRSP to use as a down payment or cover other home purchase-related costs. Spouses and partners can do the same, allowing for a combined total of $120,000. This amount is not taxable as long as it is repaid within 15 years, with one-fifteenth of the withdrawn amount required to be repaid each year.

The HBP is an excellent opportunity to leverage your RRSP to purchase a home, setting you up for success in the future. However, the RRSP funds must remain in your account for at least 90 days to qualify for the program. Additionally, you need a signed agreement to buy or build a home that qualifies for the program.

Requirements for the RRSP Home Buyers’ Plan

To participate in the RRSP Home Buyers’ Plan, you must meet the following criteria:

Be a first-time homebuyer.
Have a signed Agreement to Purchase and Sale for yourself or a relative with a disability.
Be a resident of Canada when withdrawing funds from your RRSPs.
Intend to occupy the qualifying home as your principal place of residence within one year of purchase or construction. If purchasing or building for a relative with a disability, it must be their principal residence.
If you have previously participated in the HBP, ensure it is fully repaid by January 1st of the year of the new withdrawal.

Who Qualifies as a First-Time Home Buyer Under the RRSP Home Buyers’ Plan?

Your current spouse or common-law partner must not have owned and occupied a home for the past four years.
You have lived apart from your spouse or common-law partner for at least 90 days due to a breakup. Note: you cannot use the program if your principal residence is owned and occupied by a new spouse or common-law partner.

Interested in Learning More?

If you’re interested in learning more about the RRSP Home Buyers’ Plan and how it can benefit your home purchase, reach out to us today. We’ll help you determine your eligibility, the amount you can access, and how to utilize these funds for your ideal home purchase.

Let us simplify your home-buying journey. Fill out the form below to get started or contact us today.

Back to Ontario’s First-Time Home Buyer Programs: Your Ultimate Guide.