The Home Buyer’s Plan (HBP) is a Canada Revenue Agency program that allows you, if you’re a first-time home buyer or haven’t owned a home for the last 5 years, to withdraw up to $25,000 ($50,000 for a couple), tax free, from your registered retirement savings plan (RRSP) to buy or build your home. It’s the perfect opportunity to increase your down payment.
After the second year following your withdrawal, you must begin to repay at least 1/15th of the amount borrowed from your RRSP until you have reimbursed the total amount, over a period of 15 years.
The property to be financed must meet 3 criterias for HBP admissibility:
In order for you to use funds from your RRSP, the amount in question must have been deposited for at least 90 days. You can take advantage of this program more than once, as long as you have completely reimbursed your previous HPB according to the prescribed deadline.Type your paragraph here.