The Home Buyers Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
But what is RRSP?
Registered Retirement Savings Plan is a retirement savings plan that you establish, deductible RRSP contributions can be used to reduce your tax.
Everyone who has income can contribute by December 31st of every year until 71 years old.
You can use up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home. In this case, you will need:
- You must be considered a first-time home buyer
- You must have a written agreement to buy or build a qualifying home
- You must be a resident of Canada when you withdraw funds from your RRSPs under the HBP and up to the time a qualifying home is bought or built
- Plan to use the home as your principal residence within a year of building or buying it

Participants in the Home Buyers’ Plan must repay the amount they withdrew from their RRSP within 15 years. The minimum annual repayment amounts are essentially the length of time you have to pay back the loan (15 years) divided by the amount you withdrew.
For example, if you withdrew the entire allowable amount of $35,000, your minimum annual repayments would be $2,333 ($35,000/15). The first payment is due two years after you make your first withdrawal.
Any questions regarding the HBP or RRSP?
Please contact us today!