account
RRSP Home Buyers Plan
July 31, 2019

The Home Buyers’ Plan (HBP), a program offered by the Government of Canada, is designed to help Canadians with making the big move of purchasing their first home. The program allows RRSP account holders to withdraw money out of their account tax-free when the proceeds are used towards purchasing a qualifying home. From the time you withdraw the funds, you have up to 15 years to pay it back. Repayments begin in the second year after the year in which you withdrew the funds.

Unless you have disability (or helping a relative who has one) to buy or build a home, you have to be a first-time home buyer to qualify for this program. To be considered as a first-time home buyer, you must have not owned a home for the most recent 4 year period as your principle residence. Each qualified spouse can withdraw up to $25,000 from his or her RRSP, tax-free.

  • Participating in the plan

    If you qualify for the HBP and wish to participate in the program, we’re here to help. Follow the steps below to submit your application.
    1. Fill out the Home Buyers' Plan application
    2. Fill our pre-formatted letter of direction

    If you’re withdrawing the funds via electronic funds transfer, please make sure to upload a copy of your void cheque or direct deposit form if you haven’t done so already.

    While there are no withholding taxes applied for HBP withdrawals, the standard de-registration fee applies ($25 for partial, $50 for full). Processing times is 4-5 business days.

  • Important to know

    Here are some key things you should know about the home buyers' plan:
    • You have to be a Canadian resident to benefit from this program
    • RRSP contributions must remain in the account for a minimum of 90 days before you can withdraw funds under the HBP
    • You have 30 days from the signing date of the RRSP withdrawal to use the money
    • Qualified account holders can withdraw funds from more than one RRSP account
    • RRSP issuers will not withhold tax when withdrawing $25,000 or less
    • Normally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP
    • All HBP withdrawals have to be received within the same calendar year

You may want to check this out

Need more help?

The information contained in this website is for information purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied is made by Questrade, Inc., its affiliates or any other person to its accuracy.

Questrade Wealth Management Inc. (QWM) and Questrade, Inc. are wholly owned subsidiaries of Questrade Financial Group Inc. Questrade, Inc. is a registered investment dealer, a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF), the benefits of which are limited to the activities undertaken by Questrade, Inc. QWM is not a member of IIROC or the CIPF.