RRSP Home Buyers' Plan

RRSP Home Buyers' Plan


Under this plan, the maximum RRSP withdrawal is $35,000 for each eligible person. That is, a home buyer and his/her spouse may each withdraw up to $35,000 from their respective RRSPs.


You have to be considered a first-time home buyer. You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal.

Minimum Waiting Period

The RRSP contribution must be made a minimum of 90 days before any withdrawal is allowed.


RRSP funds withdrawn for a first-time home purchase must be repaid in equal annual instalments over a 15-year period. If more than the minimum amount is repaid during a year, the annual amount to be repaid in subsequent years is reduced. If less than the minimum is repaid, the shortfall must be included in taxable income in the year it occurs. You are allowed 2 years to make your first payment.

Tax Consequences

RRSP funds withdrawn as a downpayment under the Home Buyers' Plan are not taxable. The Plan offers first time home buyers benefits such as interest-free borrowing of the downpayment.

For more information visit www.cra-arc.gc.ca/hbp/


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