Conditions for HBP eligibility and RRSP withdrawals
HBP eligibility conditions
To be eligible:
- you must be considered a first-time home buyer;
- you must enter into a written agreement to buy or build a qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home. Obtaining a pre-approved mortgage does not satisfy this condition;
- you must intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building it. If you buy or build a qualifying home for a related person with a disability, or help a related person with a disability buy or build a qualifying home, you must intend that that person occupy the qualifying home as his or her principal place of residence; and
- in all cases, your repayable HBP balance on January 1 of the year of the withdrawal must be zero.
You are responsible for making sure that all HBP conditions are met.
Even if you or your spouse or common-law partner has previously owned a home, you may still be considered a first-time home buyer.
If you do not meet the conditions to participate in the HBP in the current year, you may be able to participate at a later year.
RRSP withdrawal conditions under the HBP
- You have to be a resident of Canada at the time of the withdrawal.
- You have to receive all withdrawals in the same calendar year.
- You cannot withdraw more than $25,000.
- Only the individual who is entitled to receive payments from the RRSP (the annuitant) can withdraw funds from an RRSP. You can make withdrawals from more than one RRSP as long as you are the annuitant (plan owner) of each RRSP. Your RRSP issuer will not withhold tax on these amounts.
- Generally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP.
- Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or the contributions may not be deductible for any year.
- If you are withdrawing funds from your RRSPs to help a related person with a disability buy or build a qualifying home, it is the related person with a disability who must have entered into such an agreement.
- Neither you nor your spouse or common-law partner or the related person with a disability that you buy or build the qualifying home for can own the qualifying home more than 30 days before the withdrawal is made.
- You have to buy or build the qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home before October 1 of the year after the year of the withdrawal
- You have to complete Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP for each eligible withdrawal. For more information on completing the form, go to Completing Form T1036.
If you make a RRSP withdrawal under the HBP and a condition is not met while you are participating in the plan, your RRSP withdrawal(s) may not be considered eligible. You will have to include part or all of the withdrawal(s) as income on your income tax return for the year you received the funds. If we have already assessed your return for that year, we will reassess it to include the withdrawal(s).
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