Alan Zheng - Toronto Real Estate

RRSP Home Buyer’s Plan

A government program called the Home Buyer’s Plan (HBP) enables those who have a Retirement Savings Plan (RRSP) the ability to take as much as $60,000 out of their RRSP to use towards the purchase of building or buying a home.

Prior to being able to withdraw funds a person must get the written agreement specifying if the money will be spent on building or purchasing a new home. They are required to occupy the home within a year after building or purchasing. Additionally, it must consider you to be a first-time home buyer. Once the conditions have been met the money can be withdrawn, the husband and wife, couples, and common law partners may each withdraw $60,000.

Current homeowners can take advantage of the program by purchasing a home for a dependent relative with a disability or buying them an accessible home. The disabled individual has to first qualify for a Disability Tax Credit (DTC).