The Home Buyers Plan (HBP) allows an individual to withdraw up to $20,000 from his/her respective RRSP to purchase a principal residence in Canada. The purpose for borrowing the funds must be specified at the time of withdrawal. The principal residence must be purchased before October 1st of the calendar year that follows the withdrawal date. The amount borrowed from your RRSP must be reimbursed through annual contributions over a 15 year period.

If you do not purchase the home within the time limit, you will have until December of that year to refund the RRSP without being charged a penalty.

An individual can only use the HBP once in his/her lifetime, and only if at the present time neither the taxpayer nor his/her spouse own a principal residence.

General Note: If you have funds in one or more RRSP you are allowed to use them all, up to the limit of $20,000.

The above provides general information only. It should not be regarded or relied upon as accounting or taxation advice or opinions. Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.
 

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