RRSP Home Buyers’ Plan

How to buy a House in toronto

Program The Home Buyers’ Plan (HBP) is a program under which you can, generally, with- draw up to $35,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP con- ditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home. If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $35,000. You cannot with- draw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal. Details

• Up to $35,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples – including common-law – will be able to withdraw up to $70,000. You have to meet the first-time buyer’s con- dition. You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of resi- dence in the past 5 years. To determine past 5 years, the 4 years preceding the year you make your withdrawal plus the period in the year you make your withdrawal ending 31 days before your withdrawal is the rule adopted.

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