Frequently
asked questions (FAQ)
Glossary
Get another view on - Why Use a Mortgage Borker?
When can I use my RRSP to
buy a home?
From the Government of Canada website.
Conditions for participating in the HBP
Only the individual who is entitled to receive payments
from the RRSP (the
annuitant) can withdraw funds from an RRSP. You can make withdrawals
from more than one RRSP as long as you are the annuitant (plan owner)
of each RRSP. Your RRSP issuer will not withhold tax on these amounts.
Generally, you will not be allowed to withdraw funds from a locked-in
RRSP.
To participate in the HBP, ONE of the
following conditions must apply:
- You are withdrawing funds to buy or build a home
for yourself as a first-time home buyer.
more
details...
or
- You are withdrawing funds to buy or build a home
for a related person with a disability. more
details...
In addition, ALL of the following
conditions must apply:
- You must enter into a written agreement
(Offer of purchase) to buy or build a qualifying home. The agreement
may be with a builder or contractor, or with a realtor or private seller.
Obtaining a pre-approved mortgage does not satisfy this condition.
- You intend to occupy the qualifying home as your
principal place of residence. more
details...
- Your HBP balance on January 1 of
the year of the withdrawal is zero. more
details...
- Neither you nor your spouse or
common-law partner owns the qualifying home more
than 30 days before the withdrawal. more
details...
- You are a resident of Canada. more
details...
- You buy or build the qualifying
home before October 1 of the year after the year of
withdrawal.
more details...
You are responsible for making sure that all HBP
conditions that apply to your situation are met. If a condition is not
met while you are participating in the plan, your RRSP withdrawal will
not be considered eligible. You will have to include the RRSP withdrawal
as income on your income tax return for the year you received the funds.
If you do not meet the conditions to participate in the HBP in the current
year, you may be able to participate at a later date.
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