First Time Home Buyers Plan

How does it work?

The First Time Home Buyers Plan allows you to withdraw up to $25,000 from your RRSP to buy or build a qualifying home. Each applicant can withdraw up to $25,000 without a tax penalty. Withdrawals must be repaid over 15 years.

Eligibility:

You are not considered a first time home buyer if you have owned a home that you have occupied as your principal place of residence in the last 5 years. You must occupy the qualifying home as your principal residence.    The funds must be in your RRSP for at least 90 days. You can participate in the Home Buyers Plan program more than once in a Lifetime if all previous RRSP withdrawals were repaid in full and if you meet the home buyer’s conditions as stated above. You must be a resident of Canada to participate.

Bonus in BC: if you qualify as a First Time Home Buyer and the purchase price of your home is under $425,000 you will not be required to pay the land transfer tax. There is a partial exemption between 425k and 450k(sliding scale).

Disclaimer:
The information on this website is intended to be as accurate and current as possible, however, readers should always consult with their lawyer to ensure there have been no recent legal modifications.