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Bob Bahreinian Sales Representative, ABR, SRES, CCC*
Royal LePage Connect Realty, Brokerage Independently owned and operated
24/7 - Office: 416-281-2200

Home Buyer Plan. What is it?

May 30, 2013 - Updated: May 30, 2013

Home Ownership Incentives

"Government Programs to help you save"

Home Buyers' Plan (HBP)

The Government of Canada's Home Buyers' Plan allows qualified buyers to withdraw a maximum of $25,000 from their RRSPs to purchase or build a house.  If your spouse is also eligible, you can each withdraw up to $25,000 towards the down payment, for a total of $50,000.  No income tax is deducted from these funds, as long as they are repaid to the RRSP according to the government's repayment schedule.


How the Plan Works

You may participate in the plan if you (or your spouse) have not owed a home which you occupied as your principal residence in the last five years.


Repayment Schedule

The money you withdraw from your RRSP must be repaid over a period of no more than 15 years to retain its tax deferred status.  Your repayment period starts the second year you made your withdraws.  For example, in October 2003 you withdraw $15,000 from your RRSP to finance the purchase of your home.  Your first annual repayment of $1,000 ($15,000 divided by 15 years) is due December 31, 2005.

For more information  go to the Canadian Customs and Revenue Agency web site at and search for 'Home Buyers Plan'.

Tagged with: home buying incentives home buyer plan
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