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What to Know About the RRSP Home Buyers’ Plan

Posted on February 16, 2014

Purchasing a home can be a stressful experience. There are a lot of different elements that you need to be aware of. Here is a quick breakdown on what you will need to know as a home buyer.

RRSP Home Buyers’ Plan Summarized

  • You are not considered a first time buyer if you or your spouse(including common law) owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdraws and ending 31 days before your withdrawal
  • Property must be intended as principal residence
  • You can withdraw up to $25,000 per person ($50,000 for a couple)
  • RRSP funds must be in plan for 90 days
  • Funds must be paid back over 15 years
  • Repayment starts the second year after the year that the funds were withdrawn
  • RRSP funds withdrawn must be clear of RRSP loans
  • “Locked in” RRSP’s are usually not eligible
  • Must have written purchase agreement before applying for funds
  • Your Home Buyer’s Plan balance on January 1 of the year of the withdrawal is zero

For more detailed information on the RRSP Home Buyers’ Plan, visit the Canada Revenue Agency Site