Canada Revenue Agency
www.cra.gc.ca
Common menu bar links
Participating in the Home Buyers' Plan
After you meet all of the conditions for participating in the HBP:
1. Complete Form T1036, Home Buyers' Plan (HBP) - Request to Withdraw Funds from an RRSP.
You have to fill out Form T1036, for each RRSP withdrawal you make. After completing Area 1, give the form to your RRSP issuer, who will complete Area 2.
Your RRSP issuer will not withhold tax from the funds you withdraw if you meet the HBP conditions.
You can withdraw a single amount or make a series of withdrawals throughout the same year and January of the following year, as long as the total of your withdrawals is not more than $25,000.
If you buy the home with your spouse or common-law partner, or other individuals, each individual can withdraw up to $25,000 from his or her RRSP, provided each of you meet the HBP conditions.
Example
On October 15, 2008, Charles withdrew $7,500 from his RRSP under the HBP. Before the withdrawal, Charles had entered into a written agreement to buy a qualifying home. In March 2009, he withdrew an additional $1,500 to pay expenses he had not anticipated.
Because Charles' second withdrawal was received after January 2009, it is not considered an eligible withdrawal and must be included in his income for 2009.
Your RRSP issuer will send you a T4RSP, Statement of Registered Retirement Savings Plan Income, showing the amount you withdrew under the HBP in box 27. You have to attach this slip to your income tax return.
Note
If the total of your RRSP withdrawals under the HBP is more than $25,000, you will have to include any excess withdrawn as income on your return for the year you receive it. In addition, your RRSP issuer has to withhold tax on the excess amount at the time of the withdrawal.
2. File an income tax return.
Starting in the year you make your first HBP withdrawal and for each following year, you have to send us a completed income tax return until you have repaid all HBP withdrawals or included them in your income. You have to file a return even if you do not owe any taxes. Attach the T4RSP slips your RRSP issuer sends you for your HBP withdrawals to your return.
Complete Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, to show your total HBP withdrawals on line 15 or to enter the amount you repaid for the year on line 6. Attach Schedule 7 to your return.
Do not include any RRSP contributions designated as an HBP repayment on line 208 of your return.
Forms and publications
- Form T1036, Home Buyers' Plan (HBP) - Request to Withdraw Funds From an RRSP
- Guide RC4135, Home Buyers' Plan (HBP)
Need assistance?
If you are unable to find the information you were looking for about this specific topic, please select the Contact us button.
