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    What is the RRSP Home Buyer Plan?
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    In order to use RRSP funds for the purchase of a home, whether a brand new home or a resale home, you must be a first time home buyer or you or your spouse or common law spouse must not have owned a home that you occupied in the last five years. Prior to withdrawing any funds from your RRSP, you must have a fully executed Agreement of Purchase and Sale. Other requirements under this Plan include the following: You must be a resident of Canada during the period starting with the date of withdrawal of RRSP funds through to the closing date of your house purchase. You must use the home as your principal residence in Canada within one year of completing your purchase. Your RRSP funds must have been on deposit for at least 90 days before they can be used under the Plan and at the time of your withdrawal of your funds you must not owe any money to your RRSP for a prior borrowing from RRSP funds to buy a home. Your RRSP funds must be withdrawn within 30 days from the date of completion of your house purchase and if you make multiple withdrawals, all of the withdrawals must be made in the same calendar year or in January of the following year. RRSP funds can be used as your downpayment, for land transfer tax, legal fees and disbursements, improvements to your home, and even for the purchase of furniture and appliances for your home. The maximum amount of RRSP funds allowed, per purchaser, is $25,000.00 The funds must be paid back after your initial grace period over a period of 15 years by depositing 1/15th of the amount withdrawn annually to your RRSP. The grace period consists of the year in which the withdrawal was made plus one more full calendar year. If you wish to make payments in additional to the required 1/15th amount you may do so without penalty. If a payment is missed in any given year, you can no longer pay that amount back and it will be included in your taxable income for that year.

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