The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
The qualifying home must be acquired before October 1 of the year following the year of withdrawal. You must begin or intend to use the home as a principal residence within one year from the date of acquisition.
Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero, beginning the second year after withdrawal. If you do not repay the amount due for a year, it will have to be included in your income for that year.
Taxpayers qualifying for the disability tax credit (or their close relatives) may participate in the plan even if they are not first-time buyers provided the home acquired is more accessible or better suited for them.