Canada Revenue Agency
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HBP Condition - First-time home buyer
You have to be considered a first-time home buyer.
You are not considered a first-time home buyer if you or your spouse or common-law partner 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 withdrawal and ending 31 days before your withdrawal.
You have to meet this condition at the time you withdraw an amount from your RRSPs under the HBP.
However, if you are a person with a disability , or you are buying or building a home for a related person with a disability or helping such a person buy or build a home, you do not have to meet this condition. See HBP Condition - Person with a disability.
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.
Example
In 2006, Arthur sold his home that he had occupied as his principal place of residence for five years.
He then moved into a rented apartment. In 2007, he met Janet and she decided to move in with him.
Janet was renting her apartment and had never owned a home.
Janet and Arthur plan to get married in August 2009.
They would like to withdraw funds from their RRSPs to participate in the HBP in September 2009.
Since Arthur 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 2009.
However, Janet is considered a first-time home buyer, since she never owned a home and did not live with Arthur during the period in which he owned and occupied his home as his principal residence. She can participate in the HBP in 2009, as long as all the other requirements are met.
If Janet does not participate in the HBP in either 2009 or 2010, Arthur can participate in the HBP in 2011 as he will not have owned a home that he occupied as his principal place of residence since January 1, 2007. If they want to participate together in the HBP, they both have to wait until 2011 at which time they can withdraw funds under the HBP to buy or build a qualifying home.
