Are you Thinking of Buying Your First Home or Condo?

Read on, this article will be helpful to you.  The First Time Home Buyers Plan is available to first time buyers or those buyers who have not owned a home and lived in it as a principal residence in any of the five preceding calendar years


  • Individuals can only participate in the First Time Home Buyers Plan once.
  • Maximum withdrawal amount is $25,000.
  • If your spouse is also eligible you can each withdraw $25,000 for a total of $50,000.
  • The money you take out of the plan must have been deposited at least 90 days prior to the withdrawal.
  • If you want to pay more than the 1/15 required in any given year, you’ll still have to make your payments the next year, it’s just that the HBP in later years will be reduced.

If you want to pay less than the minimum required payment, the government will treat the amount you withdrew from your RRSP as income for that year.

Eligible Homes for this Plan

  • Any existing or new home located in Canada.
  • Can be detached, semi-detached, townhouse, condominium, mobile home, or co-op.
  • Must be occupied as principal residence within one year after buying or building it.


  • Allows you to purchase a home with money “borrowed” from your RRSP.
  • There is no withholding tax on the withdrawn amount and no tax liability provided your repay the money to the RRSP over a period of not more than 15 years.
  • If you miss a payment you must report that amount as income on your tax return for that year.
  • The repayment begins the second calendar year following the year in which the withdrawal is made.


  1. June 2015 withdraw $15,000 to purchase a home
  2. No repayment in 2016
  3. 2017 repayment is $1,000 ($15,000 – 15 years)
  4. Payment is due by December 31, 2017
  5. If you repay only $700 in 2017 you must report the $300 shortfall as income in 2017
  6. Year 2018 repayment will be another $1,000

For more information, visit Canada Revenue Agency’s Home Buyer Plan or give us a call: 416-572-1016

1) Repayments do not have to be made to same RRSP from which you withdraw the funds and have no effect on the current year’s contribution.
2) Must specify not ordinary contribution and fill out RRSP repayment form.