By: Mark

RRSP Information for First-Time Buyers

Tags: RRSP, Home Buyers Plan, Toronto, First-Time Buyers

Home Buyer's Program

The Home Buyer's Program is a federal program granted to first-time buyers in which first-timers can withdraw up to $35,000 after March 2019 from their RRSP to either buy or build a qualifying home. Withdrawals that meet the HBP programs conditions do not have to be included in your income come tax season, and you will not be subject to the dreaded WHT or withholding tax on redemption. What you want to do before you withdraw is enter into a written agreement to purchase or build a qualifying home that you must occupy no later than one year after buying or building the home.

The bonus is if you buy with a spouse or common-law or other individuals each of you can withdraw up to $35,000. However, if you or your spouse or other individual owned the home more than 30 days before the date of your withdrawal you will not be eligible for the Home Buyer's Plan. Please ensure you are aware of all of the rules and always speak with your Professional Financial Advisor to conclude if using the HBP is the best scenario for your financially, also when building a new home please be certain to consult with a Tax Lawyer about future disposition of property.

**More Details:

Please visit the CRA's website for more information and or to call or contact the CRA with questions, click here - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html#first-timehomebuyer

Information from Canada Revenue Agency and Toronto Real Estate Board.

Source: *https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html#first-timehomebuyer

**http://trebhome.com/buying/gov_programs/pdf/govprog_rrspplan.pdf



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