Here’s some facts about the first time home buyers plan regarding your RRSP

First Time Home Buyer’s are allowed to withdraw up to $20,000 from their personal RRSP to use as a down payment on a home. RSP contributions must be made more than 89 days before the Home Buyer Plan (HBP) withdrawal, contributions that have not been in the RSP for longer than 89 days do not qualify under the Home Buyers’ Plan. All withdrawals must be made in the same year. The withdrawal can be a single amount or a series of withdrawals throughout the same year.


Conditions For Participating in the Home Buyer Plan
The individual must:

  • Be considered a “first-time home buyer”. You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence. For example, to participate in the HBP in 2009, the individual or spouse/common-law partner must not have owned and occupied a home as their principal residence at any time between January 1, 2005 and 31 days before the withdrawal in 2009.

NOTE: Owning shares of a co-operative housing corporation, which give the individual or spouse (or common-law partner) the right to own or occupy the home as a principal residence is equivalent to home ownership.

  • Have entered into a written agreement to buy or build a qualifying home. Obtaining a pre-approved mortgage does not satisfy this condition.
  • Intend to occupy the home as a principal residence no later than one year after buying or building the home. The home must be bought or built by October 1 in the calendar year following the year of withdrawal. An extension of 1-year or more may by available in some circumstances. If the individual is not able to occupy the home by the end of the 1-year period after buying or building it, s/he will still be considered a participant in the HBP as the intention was to occupy the home.
  • Be a resident of Canada from the time the funds are received up to the time the home is bought or built.

Repayment Schedule

  • The amount withdrawn under the Home Buyers Plan must be repaid over a period of no more than 15 years.
  • The repayment period starts on the second year following the year the withdrawals were made.