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:

• Up to $35,000 per person can be withdrawn completely TAX-FREE from your RRSP to buy or build a principal residence. Couples can withdraw up to $70,000! Not Bad, right?
• Unless you are a person with a disability or you are helping a disabled relative buy or build a qualifying home, you will have to meet the first-time buyer qualifications to withdraw monies. You are considered a first-time buyer if, in the four-year period, you did not occupy a home that you or your current spouse owned. This four year period begins on January 1st of the fourth year before the year you withdraw funds. This ends 31 days before the date you withdraw the funds. Example: "if you withdraw funds on March 31, 2017, the four-year period begins on January 1, 2013, and ends on February 28, 2017."*
• Home Buyers that withdraw under the plan will not have to pay income tax on the withdrawal amount so long as the full amount is paid back into the RRSP in the future. This 15 year repayment period will begin in the second calendar year from which the withdrawal is made. Subsequently, a qualifying home must be acquired before October 1 of the calendar year following the year of withdrawal.
• You must be a Canadian Resident at the time of withdrawal.
• There are even more details to be discovered, why? But of course this is a government program, so the details are many.

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