What is the HOME BUYERS PLAN?

The HBP is a program that allows you to withdraw up to $20,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home. The home can be for you, or it can be for a related person with a disability. If you buy the qualifying home with your spouse or common-law partner, or with other individuals, each of you can withdraw up to $20,000.

Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP.

Repayment of the HBP funds.

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. If you do not repay the amount due for a year, it will have to be included in your income for that year.

What are the conditions for participating in the HBP?

1 - You buy or build a qualifying home for yourself.

2 - You buy or build a qualifying home for a related person with a disability.

3 - You help a related person with a disability buy or build a qualifying home.

4 - You have to intend to occupy the qualifying home as your principal place of residence. When you withdraw funds under the HBP, you have to intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building it. Once you occupy the home, there is no minimum period of time in which you have to live there.

5 - You have to be considered a first-time home buyer

6 - You have to be a resident of Canada

7 - You have to receive all withdrawals in the same calendar year

8 - You have to buy or build the qualifying home before October 1 of the year after the year of the withdrawal.

There are additional details that apply to this program. I have them at my finger tips and will be happy to provide them to you. To assist you in finding a suitable home in Richmond Hill, please log on to Richmond Hill Homes for Sale or Richmond Hill Condos for Sale.

Peter Diamant, you neighbourhood realtor in Richmond Hill.