What is the Home Buyers Plan?
If you are a first-time homebuyer with a Registered Retirement Saving Plan (RRSP), you may be eligible for the Canadian government’s Home Buyers’ Plan. This allows you to withdraw up to $20,000 from your RRSP to add to your down payment, or to cover purchase-related costs. If your spouse or partner has an RRSP, he or she can do the same, so that up to $40,000 from your RRSPs can be applied to the purchase of a home. Best of all, you don’t have to pay income tax on the funds, so long as you repay the total amount into your RRSP within the next 15 years. If you withdrew the full $20,000, your minimum annual repayment into the RRSP would be $1,333. For more information, review the Home Buyer’s Plan on the Canada Revenue Agency website.
