WHAT IS THE HOME BUYERS’ PLAN? – RRSP WITHDRAWAL

If you are a qualified first time home buyer, you can withdraw up to $25,000 in a calendar year from your RRSP to buy or build a qualifying home.  There are no penalties for early withdrawal but you must repay the loan over 15 years.

Making a Withdrawal

You must fill out a T1036 Form and take it to your financial institution that holds your RRSP funds.

How Do I Repay The Loan?

You must start repaying the loan in the second year.

Generally, you have up to 15 years to repay the loan.  However, you can repay the full amount into your RRSP anytime.  Each year Canada Revenue Agency (CRA) will send you a Home Buyers’ Plan statement of account.