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Is this guide for you?
9 [7 z1 e( u# @- r7 c0 |' NUse this guide if you want information about the rules that# m/ ^# N3 I& ~7 g% n6 P
apply to the Home Buyers’ Plan (HBP). C% v- B+ E& p3 a& T
What is the HBP?
) Q/ M% j. |7 S1 fThe HBP is a program that allows you to withdraw up
4 l2 f# C( G {9 |& \$ \5 v5 Gto $20,000 from your registered retirement savings plans
" c' D9 W! I7 W) s- o4 `(RRSPs) to buy or build a qualifying home. However, the$ K7 u$ c U4 |2 z1 r
program sets out certain conditions for participation. If an
; h0 C( F9 u" ]individual meets all the applicable HBP conditions, the" t/ X& K2 B8 D! w+ @
withdrawals will not have to be included in his or her% ?! s4 M2 b3 F4 B% B I- f6 I
income, and the RRSP issuer will not withhold tax on these3 i( A) t0 x* W/ i: M
amounts. If you buy a qualifying home with your spouse or
; F" N3 i; `* N7 v: @+ b5 W6 Ocommon-law partner, or with other individuals, each of: `' \" A0 u( X, ~
you can withdraw up to $20,000.
' @% P" w4 L. i4 u5 L, m W' A, M+ I. dUnder the HBP, you have to repay all withdrawals to your( ]2 ?. S" b; y0 ~# x
RRSPs within a 15-year period. Generally, you will have to
o v. D6 O7 Z4 N5 P3 k$ c, v" n6 U8 Wrepay an amount to your RRSPs each year, starting the9 z0 M [, q: z( p: ~6 H
second year after the funds are withdrawn, until you have- r/ L X3 j1 {
repaid the total amount you withdrew. If you do not repay; F- }2 `8 K/ m, B! C
the amount due for a year, it will have to be included in
" x2 f$ o) a5 g# N3 z9 y- C! [your income for that year. |
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