Buy Your Home with Your RRSP

NOHFC Helps Business

RE/MAX Thunder Bay Housing StatsTHUNDER BAY – Business – The Home Buyers’ Plan (HBP) is a program that allows you to withdraw your RRSPs (Registered Retirement Savings Plan) to use as a down payment to purchase or build a home.  Individuals can withdraw up to $25,000 in any given year to put towards the plan.

Eligible RRSP contributions must have remained in the RRSP for a minimum of 90 days before they can be withdrawn, or they would not be deductable for tax purposes for any given year.

RRSPs that are withdrawn to be used for the purchase or build of your home, are not withdrawn as income, but rather can be paid back in no more than 15 years.  You will have to repay a minimum amount for each year until your balance is zero, or be forced to include the minimum amount in your income for that year.

Conditions for participating in the Home Buyers’ Plan

It is always important to know what conditions need to be met before applying.  The home you purchase or build must have your occupancy within 1 year of purchasing or building it and must be your principal residence. 

You must be considered a first-time home buyer to qualify for the program, and you can apply even if your spouse or common-law partner already has a home.

Repaying your withdrawn RRSPs

Over a 15 year period, you will repay your RRSPs annually with no less than 1/15 of the total amount withdrawn under the HBP.  When making a repayment of your RRSPs, payments can be made exactly like regular RRSP contributions and be made within the first 60 days of the following year. 

Annually you will receive a HBP statement of account, with your notice of assessment that will indicate to you the amount you must repay for that calendar year.     

 The Bottom Line

Anthony TalaricoThe Home Buyers’ Plan is a great way for those who’ve used RRSPs to defer taxes, to take advantage of their savings and purchase their first home.  It is just another great tool that may be of use to us, given the right circumstances.  Should you have any questions about the Home Buyers’ Plan, do not hesitate to contact me.

Anthony M. Talarico

Financial Security & Investment Representative

W: 807-343-4788   C: 807-472-6092


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Anthony M. Talarico Financial Security Advisor W: 807.343.4788 ext. 4248 C: 807.472.6092