RRSP Home Buyers Plan
How do I make a withdrawal?
You need to complete Form T1036 Request to Withdraw Funds from an RRSP, for each withdrawal that you make under the HBP. Forms are available from Canada Customs & Revenue Agency or from your RRSP issuer. After completing Area 1 of Form T1036, give it to your RRSP issuer for processing. You can only withdraw funds from an RRSP under which you are the annuitant (e.g. the owner).
If your spouse contributed to your RRSP’s, you are still the annuitant of the RRSP, even if your spouse deducted the contributions from his/her income. Some RRSP’s, such as locked-in or group RRSP’s, do not allow you to withdraw funds from them. Check with your RRSP issuer to find the status of your RRSP’s.
A number of conditions have to be met to participate in the HBP. While some conditions have to be met before you can withdraw funds from your RRSP’s, others apply when or after you receive the funds. Regardless of the situation, you are responsible for making sure that all HBP conditions are met. If at any time during your participation period a condition is not met, your withdrawal will not be considered an eligible withdrawal and it will have to be included in income for the year you received it.
What are the conditions for participating in the HBP?
- You have to enter into a written agreement to buy or build a qualifying home;
- You have to intent to occupy the qualifying home as your principal residence;
- You have to be considered a first-time buyer;
- Neither you or your spouse can own the qualifying home more than 30 days before the withdrawal is made;
- You have to be a resident of Canada;
- You have to complete Form T1036;
- You have to buy or build the qualifying home before October 1 of the year after the year of withdrawal.
A qualifying home is a housing unit located in Canada. Existing homes or homes under construction can be qualifying homes. Single-family homes, semi-detached homes, townhouse, condo, mobile homes, and apartments all qualify.
First Time Home Buyer
You are considered a first time home buyer if you have not owned a home which you occupied as your principal residence in the last 5 years. If at the time of withdrawal you have a spouse, it is possible that only one of you will be considered a first-time home buyer.
Beginning in 1999, if you previously participated in the HBP, you may be able to do so again as long as you have repaid all of the amount your originally withdrew from your RRSP’s. In addition, you must meet all the other regular HBP conditions.
Canada Customs and Revenue Agency has a web site where you can download many useful publications including the Home Buyer’s Guide at www.ccra-adrc.gc.ca.