Definitions for Home Buyer's Plan (HBP)

Arm's length – a relationship or transaction between persons who act in their separate interests.

Related persons are not considered to be dealing with each other at arm’s length. Related persons include individuals connected by a blood relationship, marriage, common-law partnership, or adoption (legal or in fact). A corporation and an individual, or two corporations, may also be related persons.

Unrelated persons might not be dealing with each other at arm’s length at a particular time, for example, when one person is under the influence or control of the other or the persons are considered to be acting together. Each case depends upon its own facts.

For more information, see Income tax Folio S1–F5–C1, Related Persons and Dealing at Arm's Length.

Common-law partner – a person who is not your spouse (see the definition of spouse), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:


In this definition, 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in the relationship.

  • is the parent of your child by birth or adoption; or
  • has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

Eligible withdrawal – this is an amount you withdraw from your RRSP after you have met the HBP conditions that apply to your situation.

HBP balance – your HBP balance, at any time, is the total of all eligible withdrawals you made from your RRSPs minusthe total of all amounts you designated as an HBP repayment and amounts included in your income (because they were not repaid to your RRSPs) in previous years.

Non-arm’s length – a relationship or transaction between two persons who are related to each other. However, a non-arm’s length relationship might also exist between unrelated individuals, partnerships, or corporations, depending on the circumstances.

Participant – you are considered an HBP participant if:

Participation period – your HBP participation period starts on January 1 of the year you make an eligible withdrawal from your RRSP and ends in the year your HBP balance is zero.

Person with disability – you are considered a person with a disability if you are entitled to the disability amount. For purposes of the HBP, a person with a disability includes you or a person related to you by blood, marriage, common-law partnership or adoption. A related person with a disability does not have to reside with you in the same home.

We consider a person to be entitled to the disability amount if one of the following situations applies:

If all other eligibility requirements are met, we consider a person to be entitled to the disability amount even if costs for an attendant or for care in a nursing home were claimed as a medical expense by or on behalf of that person.

Pooled registered pension plan (PRPP) – a pooled registered pension plan (PRPP) is a new, accessible, straightforward retirement savings option for individuals who do not have access to a workplace pension plan or where a workplace pension plan does not exist.

Qualifying home – a qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in a housing unit located in Canada, also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

RRSP deduction limit – the maximum amount you can deduct on your income tax and benefit return for contributions you made to your RRSPs, your PRPPs, or to your spouse’s or common-law partner’s RRSPs.

Spouse – a person to whom you are legally married.

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