HOME BUYERS' PLAN (HBP)
The Home Buyer's Plan (HBP) allows first-time homebuyers or persons who have not been homeowners for five years to withdraw funds from their RRSP to purchase a home, with no income tax payable on the amount withdrawn.
A maximum of $25,000 may be withdrawn.
To qualify for an HBP, the home must be:
- located in Canada;
- purchased or built by October 1 of the calendar year in which the RRSP withdrawal is made;
- intended as your principal place of residence no later than one year after buying or building the home.
Repaying the Withdrawals
The amounts withdrawn under an HBP must be repaid over a 15-year period as of the second calendar year following the withdrawal. Each year you have to repay 1/15 of the total amount you withdrew. The repayments are not considered to be contributions to your RRSP and are not tax deductible.