7150 Hawthorne Dr. Unit 104
Windsor, ON, N8T 3N3
Phone: (519) 974-6688
Toll Free: +1 866-973-4846
Fax: (519) 974-7192
The Home Buyers Plan allows a first-time home buyer to withdraw funds from his or her RRSPs to buy a qualifying home.
A housing unit located in Canada that will be acquired before October 1, of the calendar year after the year of withdrawal, and will be occupied as a principal residence no later than one year after being acquired. Existing and new homes are eligible.
You and your spouse or common-law partner can borrow up to $25,000 each from your RRSP. The three year attribution rule on withdrawals from spousal RRSPs does not apply to Home Buyers Plans withdrawals.
You must repay the money to your RRSP over a 15 year period, beginning the second calendar year after the withdrawal. You have to repay at least 1/15 of the withdrawn amount each year. If you pay less, the amount you do not repay is included as income on your tax return for that year. If you pay more, the amount you owe will be reduced resulting in lower annual repayments in subsequent years. Each year, you will receive a statement from the Canada Customs and Revenue Agency telling you what you owe.
You can deduct RRSP contributions made in the same year as the Home Buyers Plan withdrawal on the condition that they were made at least 90 days before the withdrawal.
Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Seguin Financial Group Ltd. Seguin Financial Group is a trade name used for both mutual fund & Insurance business activities. Banking products and services are offered through referral.