The term “First Time Home Buyer” is thrown around often these days and is tagged in countless incentive based programs and policies. In the future I will dedicate an entire newsletter to the various First Time Home Buyer privileges and programs, but today I will talk about one in particular, the RRSP Homebuyer Plan.

What is the RRSP Home Buyer Plan?The RRSP Home Buyer Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build a home for yourself or for a related person with a disability.

Here are the 3 major features of the RRSP Home Buyer Plan: Access up to $35,000 of RRSP funds for the purchase of a home * Take as long as 15 years to pay it back * If you don’t repay the loan within the 15 year period, the full amount of the loan will be declared as income and you will be subject to tax* at your marginal rate

Eligibility criteria for the RRSP Home Buyer Plan: You must be considered a first-time home buyer * You must provide evidence of a written agreement that details the purchase of the home * You must be a resident of Canada. Click here to see the the residency status guidelines. * You must intend to occupy* the property as your principal residence within one year after buying or building it

Can I qualify for the RRSP Home Buyer Plan, TWICE?Yes! As long as you satisfy the following conditions:

• Your previous HBP loan must be paid in full and have a $0 balance on January 1 of the year of your new withdrawal
• You can (once again) be considered a first-time home buyer if, in the four year period, you did not occupy a home that you owned, or one that your current spouse or common-law partner owned. The four-year period means the four years prior to a home purchase. The period begins on January 1 of the fourth year before the year you withdraw funds from your RRSP, and ends 31 days before the date you withdraw funds.

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Contact Marko, he's a Mortgage Broker!604-800-9593 direct Vancouver

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