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RRSP Home Buyers Plan
The HOME BUYERS PLAN (HBP) is a program under which you can, generally, withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HPB conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.
How to Make a Homebuyers' Plan Withdrawal
Your withdrawal can only be made after you provide proof of an accepted offer. You must submit a completed Form T1036 Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP to your RRSP issuer, who will finish the process.
Paying Back a Homebuyers' Plan Withdrawal
The money you withdraw from your RRSP under the Home Buyers Program is considered a loan. The money must be repaid at a prescribed rate into your RRSP within 15 years, but you don't have to begin repayments into your RRSP for about three years. It's a good idea to begin paying back this money as soon as you can.
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