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RRSP Home Buyers Plan

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 withdraw 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 principal residence. Each qualified spouse can withdraw up to $35,000 from his or her RRSP, tax-free.

  • SwitchArrow 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 are 4-5 business days.

  • SwitchArrow 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
    • Qualified account holders can withdraw funds from more than one RRSP account
    • RRSP issuers will not withhold tax when withdrawing $35,000 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

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