Can I withdraw funds with the Home Buyers' Plan (HBP)?

The Home Buyers' Plan (HBP) is a program offered by the Canada Revenue Agency (CRA) that allows first-time home buyers to withdraw up to $60,000 from their RRSPs, tax-free, to purchase or build a qualifying home. This program can also be used to make a home more accessible for a person with a disability. Here’s an overview of the eligibility requirements, withdrawal rules, and repayment conditions for using the HBP.

Eligibility Requirements

To be eligible for the HBP, you must meet the following criteria:

• First-Time Home Buyer: You and/or your spouse/common-law partner must not have owned/jointly-owned a home in the previous four years.
• Purchase Agreement: You must have a written agreement to buy or build a qualifying home.
• Residency: You must be a resident of Canada both at the time of withdrawal and up to the date of buying or building the home.
• Property Use: The funds must be used to buy or build a home for yourself or a related person with a disability. You cannot use the program to purchase a second home or rental property.

Withdrawal Rules and Limits

Here are the key rules and limits for making an HBP withdrawal:

• Maximum Withdrawal: The current maximum withdrawal amount is $60,000 per individual.
• RRSP Holding Period: The RRSP contributions you withdraw must have been in your RRSP for at least 90 days before they are eligible for the HBP.
• Multiple Withdrawals: You can make single or multiple withdrawals from different RRSP accounts as long as you do not exceed the maximum withdrawal limit.
• Form Requirement: You must complete CRA Form T1036, which can be found attached to this article.

How to Apply for the Home Buyers' Plan

1. Fill Out the HBP Form: Complete CRA Form T1036 to request an HBP withdrawal. Download the form attached to this article.
2. Do not initiate withdrawal in portal: We will manually process the withdrawal on our end — do not submit a withdrawal in your plan.
3. Update Banking Information: Log into your plan on the desktop version, click on your name in the top right corner, and select "Update my personal information." Ensure your banking details are current to receive funds.
4. Submit the Form: Send your completed form through our support portal: Submit HBP Form.
5. Wait for Processing: After submission, it will take 10-14 business days to process your HBP withdrawal. You will be notified when the transaction is complete.
6. Fees:

• Partial withdrawal: $35 + tax
• Full withdrawal: $75 + tax

Repayment Rules and Conditions

The HBP is essentially a loan from your RRSP that you must repay over time. Here are the repayment rules:

• Repayment Timeline: Repayments to your RRSP must begin two years after the withdrawal, and the total amount must be repaid within 15 years.
• Minimum Annual Repayment: The minimum annual repayment is 1/15th of the total amount withdrawn.
• Early Repayment: You are allowed to repay the full amount at any time without penalty.
• Impact on RRSP Contribution Limits: Repayments do not affect your regular RRSP contribution limits.
• Missed Payments: If you miss a repayment, the amount will be included in your taxable income for that year.