Home Buyers Plan Withdrawals

The Home Buyers’ Plan (HBP) allows first time home buyers to withdraw funds from there registered retirement savings plan (RRSPs) to buy or build a qualifying home (a qualifying home is a housing unit located in Canada, it includes existing homes and those being constructed).

Each first time home buyer is eligible to withdrawal a limit of $25,000 from there RRSP for the home buyers plan. This amount is tax and interest free and must be paid back annually over a maximum period of 15 years. If an annual payment is not made it will be included in your income for that year.

You may also use the HBP to buy a home for a related person with a disability. The first time home buyer condition does not have to be met in this case if the home being purchased better suites the needs of the family member with the disability.

For more information visit the CRA website