RRSP Home Buyer Plan

The Home Buyers Plan(HBP) lets a first time buyer withdraw up to $25,000 from RRSP’s for a principle residence purchase.

Couples-including common-law will be able to withdraw up to $50,000. 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A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made.

The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15th of the entire amount withdrawn.Your repayment period starts the 2nd year following the year you made your withdrawals.  For example, if $20,000 is withdrawn, the minimum annual repayment is $1,333.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.