RRSP Home Buyers Plan

Are you a first-time home buyer? This might be of help to you!

The Home Buyer’s Plan (HBP) allows first-time buyers to withdraw money from their Registered Retirement Savings PLan (RRSP) to purchase or build a home without having to pay tax on the withdrawal. The current HBP withdrawal limit is $25,000.

Generally, an individual is considered to be a first-time home-buyer if neither the individual nor the individual’s spouse or common-law partner owned or lived in another home owned by either of the individuals in the calendar year in which the HBP withdrawal is made, or any of the 4 preceding calendar years.

Special rules apply to facilitate the acquisition of a home that is more accessible or better suited for the personal needs and care of an individual who is eligible for the disability tax credit, even if the first-time home-buyer requirement is not met. These rules have also been modified to provide the same $25,000 withdrawal limit.

Notes on the Program

  • Withdrawn funds must generally be used to acquire a home before October of the year following the year of withdrawal
  • Amounts withdrawn under the HBP are repayable in installments over a period not to exceed 15 years
  • To the extent that a scheduled repayment for a year is not made, it is added to the participant’s income for that year
  • A special rules denies an RRSP deduction for contributions withdrawn under the HBP within 90 days of being contributed