RRSP – HomeBuyer’s Plan (HBP)

The Home Buyer’s Plan (HBP) allows a First Time Home Buyer to borrow from their RRSP toward the downpayment of a home.

Some main points:

  • A first-time HomeBuyer can borrow up to $25,000 (up to $50,000 for a couple) from RRSP
  • RRSP funds to borrow must be in account for at least 90 days prior to withdrawal
  • there must be a signed agreement to buy or build a qualifying home
  • the home is to be a primary residence, HBP does not qualify for investment/rental property
  • the RRSP withdrawal (for HBP) is tax free, if paid within a 15-year period
  • HomeBuyer must be a Canadian Citizen

Great article & infographics by Young and Thrifty : Downpayment RRSP Home Buyer's Plan HBP

How to Use the HomeBuyer’s Plan

More info,  provided by:

A Tax Lawyer: Tax Tips – RRSP HBP

Canada Revenue: Home Buyer’s Plan

Another Opinion

RRSP for a down payment on a house? Don’t do it.

Article above by Erica Alini  National Online Journalist, Money/Consumer  Global News

Downpayment for house RRSP Home Buyer's Plan HBP

We hope this was informative, if you need help with your home search & purchase, please contact us.
Downpayment for a First Home – RRSP HomeBuyer’s Plan
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