HBP Condition - First-time home buyer

You have to be considered a first-time home buyer

Generally, before you can withdraw funds from your RRSPs to buy or build a qualifying home, you have to meet the first time home buyers' condition.

You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the date of withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence.

If, at the time of the withdrawal you have a spouse or common-law partner, it is possible that only one of you will be considered a first-time home buyer.

Questions and answers button

Answer a few questions to determine if you or your spouse or common-law partner are considered a first-time home buyer in 2012.

However, if you are a person with a disability, or you are acquiring a home for a related person with a disability or helping such a person acquire a home, you may not have to meet this condition. For more information, see HBP Condition - Person with a disability.

Example
In 2009, Paul sold the home he had occupied as his principal place of residence for five years. He then moved into a rented apartment. In 2009, he met Jane and she moved in with him. Jane had been renting her own apartment, and had never owned a home.

Jane and Paul were married in August 2012. They wanted to withdraw funds from their RRSPs to participate in the HBP in September 2012. Since Paul owned and occupied his home during the period beginning January 1 of the fourth year before the year he wants to make the withdrawal, he is not considered a first-time home buyer, so he cannot participate in the HBP in 2012.

However, Jane is considered a first-time home buyer, since she never owned a home, and she did not live with Paul during the period in which he owned and occupied his home as his principal place of residence. She can participate in the HBP in 2012, providing all the other requirements are met.

If Jane does not participate in the HBP in either 2012 or 2013, Paul can participate in the HBP in 2014 as he will not have owned a home that he occupied as his principal place of residence since January 1, 2010. If they want to participate together in the HBP, they both have to wait until 2014 at which time they can withdraw funds under the HBP to buy or build a qualifying home.

Exception to the first-time home buyer's condition

You do not have to meet this condition to participate in the HBP if any of the following situations apply to you at the time you make a withdrawal from your RRSPs under HBP:

  • you are a person with a disability and you withdraw funds under the HBP to acquire a home that is more accessible, or better suited to your needs;
  • you withdraw funds under the HBP to acquire a home for a person with a disability related to you by blood, marriage, common-law partnership or adoption, and the home is more accessible or better suited to the needs of that person; or
  • you withdraw funds under the HBP and give those funds to a person with a disability related to you by blood, marriage, common-law partnership or adoption, to acquire a home that is more accessible or better suited to the needs of that person.