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RRSP Home Buyers Plan

The Home Buyers Plan (HBP) allows first-time homebuyers or persons who have not been homeowners for five years to withdraw funds from their RRSP to purchase a home, with no income tax payable on the amount withdrawn.

Maximum Withdrawal

A maximum of $20,000 may be withdrawn.

Qualifying Home

To qualify for the HBP, the home must be:

• located in Canada;
• purchased or built by October 1st of the calendar year in which the RRSP withdrawal is made;
• intended to be your principal place of residence no later than one year after buying or building the home.

Repayments

The amounts withdrawn under a HBP must be repaid over a 15-year period, beginning in the second tax year following the year of the withdrawal. Each year you have to repay 1/15 of the total amount withdrawn and the repayments are not tax deductible.