Home Buyer (RRSP withdrawal) Plan and RRSP withdrawal limits and rules.

The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. The HBP allows you to pay back the withdrawn funds within a 15-year period. You can withdraw funds from more than one RRSP as long as you are the owner of each RRSP account. Your RRSP issuer will not withhold tax on withdrawn amounts is up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home. Some RRSPs, such as locked-in or group RRSPs, do not allow you to withdraw funds from them. Certain conditions must be met in order to be eligible to participate in the HBP, including the following:

 You must be considered a first-time homebuyer

 you must have a written agreement to buy or build a qualifying home, either for yourself or for a related person with a disability

 the RRSP funds you're using must be on deposit for at least 90 days

 you must be a resident of Canada when you withdraw funds from your RRSPs under the HBP and up to the time a qualifying home is bought or built

 You must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it. If you buy or build a qualifying home for a related person with a disability, or help a related person with a disability to buy or build a qualifying home, you must intend that that person occupies the qualifying home as his or her principal place of residence

In all cases, if you have previously participated in the HBP, you may be able to do so again if your repayable HBP balance on January 1st of the year of the withdrawal is zero and you meet all the other HBP eligibility conditions. The best part is the withdrawal is not taxable as long as you repay it within a 15-year period.

To learn more, please contact Ashok Nagre @ 905-601-1010 or email ashnagre@hotmail.com