The Home Buyers' Plan (HBP)

For several years now, it has been possible to use your RRSPs to buy a house under a government program called the Home Buyers' Plan (HBP).

The main features of the HBP are as follows:

• You can withdraw up to $20,000 from your RRSP to buy a home as the owner/occupant;
• Individuals and spouses are eligible as long as they were not homeowners during the year when they withdraw funds from the RRSP or during the previous four calendar years;
• The amounts can be withdrawn to purchase a newly built or existing home;
• In the case of a loan insured by the CMHC (if a loan was necessary), certain restrictions apply regarding using the income tax return;
• You have 15 years to pay back the amounts withdrawn from your RRSP, without interest.