What is the Home Buyers Plan (HBP)?
The HBP is a program that allows you to withdraw up to $25,000 from your registered Retirement Savings Plans (RSPs) to buy or build a qualifying home. However, the program sets out certain conditions for participation. If an individual meets all the applicable HBP conditions, the withdrawals will not have to be included in his or her income, and the RSP issuer will not withhold tax on these amounts. If you buy a qualifying home with your spouse or common-law partner, or with other individuals, each of you can withdraw up to $25,000. Under the HBP, you have to repay all withdrawals to your RSPs within a 15-year period. Generally, you will have to repay an amount to your RSPs each year, starting the second year after the funds are withdrawn, until you have repaid the total amount you withdrew. If you do not repay the amount due for a year, it will have to be included in your income for that year.
